Board Update on Fraud

Noteable speakers

• Katriona Standford, Barrister and Senior Case Controller Serious Fraud Office
• Michael Balmer, Partner Weightmans
• Mark Allen, Head of Fraud ABI

Key Weightmans’ attendees

• Mike Brown, Head of Fraud
• Jacqui Bickerton, Market Affairs
• Elliott Kenton, Partner 

Highlights

• Discussion on how SFO approach future prosecutions under ECCTA
• SFO aim is not to punish – more to check the organisations procedures and whether they were in place
• SFO are concerned with organisations who do not take fraud seriously
• On data, SFO play a key role in disruptors
• With on the shelf policies, SFO do not favour these. They are inadequate. SFO are concerned with whether the organisation’s policies are adequate and whether the risks have been considered in real time. SFO want to know that organisation’s policies operate in practice and don’t just sit on the shelf.

On self-reporting to the SFO, there is corporate guidance for organisations. The SFO take kindly to:

• Self-reporting – shows the organisation are taking the issue seriously
• How a company responds is as good as everything
• SFO want full context of issues and preserved evidence.
• They look for credible investigations and steps having been taken to avoid it happening again.
• Candour – report full issues not part
• Remediation matters – engage with the SFO earlier

Crime and Policing Act

• It is not just Board members who will have liability (separate board paper in draft)
• Senior managers are likely to be caught
• Staff are encouraged to report issues early

Data breaches are likely to be prosecuted first.

Key recommendations

• Board level buy in, Anti-Fraud culture must start from the top
• Have reasonable procedures in place
• Consistency of application
• Stress test systems are working internally
• Data is key
• Avoid having a large policy that does not fit the organisation.
• Where prevention fails prosecution will follow.