A multinational corporation (MNC) is a company that operates in multiple countries around the world. MNCs are typically large, global organizations that have operations in a number of different countries, and they often have a significant impact on the economies of the countries in which they operate.
Industries that have MNCs
MNCs can be involved in a variety of industries, including manufacturing, finance, and technology, and they often have complex organizational structures that allow them to manage their operations in different countries. MNCs often have a central headquarters that coordinates their global operations, and they may have subsidiaries in each of the countries in which they operate.
MNCs and global economy
MNCs play a significant role in the global economy, and they often have the resources and expertise to take advantage of opportunities in different markets around the world. However, MNCs have also been the subject of criticism for their impact on local economies, labor practices, and the environment, and they are often subject to scrutiny and regulation by governments around the world.
Top MNCs in the world
Apple:
Apple is a technology company that is headquartered in the United States and operates in a number of countries around the world. Apple designs, develops, and sells a range of products, including iPhones, iPads, and Macs, and it has a significant presence in the global technology market.
Samsung:
Samsung is a South Korean conglomerate that operates in a number of industries, including electronics, finance, and shipbuilding. The company is known for its smartphones and other consumer electronics products, and it has a significant presence in the global market.
Coca-Cola:
Coca-Cola is a beverage company that is headquartered in the United States and operates in a number of countries around the world. The company is known for its signature soft drink, Coca-Cola, and it has a significant presence in the global beverage market.
Nestle:
Nestle is a Swiss food and beverage company that operates in a number of countries around the world. The company is known for its brands, such as Nescafe and Gerber, and it has a significant presence in the global food and beverage market.
Walmart:
Walmart is a retail company that is headquartered in the United States and operates in a number of countries around the world. The company is known for its discount stores and has a significant presence in the global retail market.
Financial Crimes & MNCs
MNCs have been involved in high-profile cases of financial crimes.
Here are a few examples:
The Danish MNC Maersk was accused of violating U.S. sanctions against Cuba, Iran, Sudan, and Syria by shipping goods to these countries as of 2017. The company agreed to pay a $4.1 million fine to settle the charges.
A French MNC Airbus in 2018 was accused of paying bribes to win contracts in several countries, including Saudi Arabia, Taiwan, and South Africa. The company agreed to pay $3.9 billion to settle the charges.
In 2020, the U.S. MNC Goldman Sachs was accused of corrupt practices in connection with its role as a financial advisor to the Malaysian sovereign wealth fund 1MDB. The company agreed to pay a $3 billion fine to settle the charges.
As of 2021, the Swiss MNC Credit Suisse was accused of aiding and abetting tax evasion by its clients. The company agreed to pay a $5.3 billion fine to settle the charges.
Regulating MNCs against Fincrime
Undoubtedly, financial crimes can have serious consequences, including damaging the reputation of the companies involved and undermining investor confidence in the markets. A well-known and globally recognized approach in fighting fincrime is KYC. Since, MNCs are directly involved in customer handling globally, they can contribute in fighting fincrime by complying with the standards of KYC. One aspect of this approach is to maintain the strong & updated database of customers in order to cross verify & monitor the patterns of customers' financial transactions & purchases.
Walmart as of 2022, practices the KYC through its customer support service. Whenever a complaint against any case is launched by the customer the previous purchase trends and other necessary information is gone through by the back-end support team. They tend to discuss and verify the cases and work on the recorded information for future use. In this way fraudulent customers are identified & reported for further action.
Final Word
By looking at Walmart’s example we can say that the MNCs have the potential to eradicate fincrime even at the agent level. There are several approaches that MNCs can utilize in making the system crime free & safe for genuine customers. KYC can be a basis of building a strong and safe system against fincrime.
