Aziz Rahman of ﬁnancial crime solicitors Rahman Ravelli emphasises the importance of companies doing the same.
In announcing ﬁnancial assistance for the UK's self-employed aﬀected by the Covid-19 pandemic, Chancellor Rishi Sunak acknowledged the scheme may be attractive to those looking to perpetrate fraud.
The Financial Conduct Authority (FCA) has gone to great lengths to warn that the present situation may be exploited by those looking to defraud, using anything from investment fraud and advance fee fraud through to clone ﬁrms. The National Crime Agency (NCA) is also highlighting virus-related fraud risks posed by the likes of bogus online medical equipment suppliers, fake HM Revenue and Customs, bank and loan company oﬃcials and computer hackers.
Also in response to the pandemic, Business Secretary Alok Sharma has announced a temporary suspension of the wrongful trading provisions. But the law in relation to fraudulent trading - and the potential for director disqualiﬁcation – remains in place.
Such developments do show that the current problems being faced by businesses are recognised by the government. But it should be emphasised that, despite the unusual circumstances, the law and the agencies that enforce it are still functioning; even if changes are being made. Companies cannot, therefore, expect to be immune from either the dangers of fraud or the consequences of becoming involved in it. Read more about: Business Crime Defence.
It is now, therefore, arguably more important than ever to be alert to the risks. This means having well thought-out and properly executed measures in place to prevent and / or identify fraud and being able to respond swiftly and in the appropriate manner whenever fraud is suspected.