Detecting evidence of corrupt behaviour can be challenging. One indirect tool that can alert us and motivate deeper investigations is lifestyle audits. These audits help identify irregular patterns that guide our inquiries.
In the Customs sector, lifestyle audits have specific characteristics. In addition to integrating data from tax, banking, and real estate records to spot discrepancies, advanced technological tools such as such as data analysis in customs systems, big data, and data mining can be used. These technologies can uncover irregularities in officials' records, such as non-standard approvals or unusual patterns in processing customs declarations.
Furthermore, operating in a cross-border environment means Customs officials have access to assets located in other countries or may receive payments in foreign accounts. Therefore, audits should include the analysing international financial records and establishing cooperation mechanisms with other jurisdictions. Monitoring specific trade-related patterns, such as frequent connections with importing or exporting companies or business relationships with key players, is also essential.
Lifestyle audits are directly linked to several key factors of the WCO Revised Arusha Declaration (RAD), particularly to audit and investigation, as well as the Code of Conduct.
The Malawi Revenue Authority (MRA) understands the importance of these measures, and as part of its commitment to fighting corruption, several activities on this topic have been organized under the WCO Anti-Corruption and Integrity Promotion (A-CIP) Programme. The latest was a workshop held from December 2 to 6 in Blantyre with the assistance of experts from the Mauritius Revenue Authority and the Rwanda Revenue Authority. During the workshop, key areas were reinforced, such as report formatting and developing an action plan to help the administration address corruption risks.
The WCO A-CIP Programme provides technical assistance and capacity-building support to WCO Member administrations implementing integrity-related initiatives in line with the WCO Revised Arusha Declaration. For more information, please contact capacity.building@wcoomd.org