Dishonesty and fraud

At last there is movement on fraud, the ‘other side’ of the FSA’s financial crime objective. With the money laundering and terrorist financing initiatives well in hand, in December 2003 the regulator published DP26 “Developing our policy on fraud and dishonesty”. The document opens with a caveat, “We cannot prosecute most types of fraud and dishonesty.”The regulator’s focus will therefore be primarily on prevention and systems and controls issues, ie, on fraud risk management.