The fragmented regulatory environment in Southeast Asia contributes to start-up frauds. Despite calls for improved investment screening, founder vetting, accounting standards, regulation, and governance, changes have been slow in this region.

Henry Chambers, Managing Director with Alvarez & Marsal’s Disputes and Investigations practice in Hong Kong, is recently featured in the Asian Venture Capital Journal, where he discuses the growing concern of governance gaps in Southeast Asia’s startup ecosystem. He noted that services support in the current environment has shifted towards integrity due diligence to pick up red flags uncovered by conventional financial and operational due diligence. Technological upgrades also plays a crucial role in enhancing transaction transparency and behavior control, such as using accounting systems that increase oversight of money movements through built-in segregation of duties.

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