Speaking today* Rosalind Wright, Director of the Serious Fraud Office said that terrorism will inevitably cause a rethink of criminal justice and regulatory priorities. Fraud - not regarded as a major policing priority - and money laundering now likely to move up the agenda of criminal justice and regulatory authority attention.
*(The Director was speaking at the IIR Conference titled" Developing winning strategies to combat fraud" at The Berkeley Hotel, London on Tuesday 16 October 2001).
- A harder crack-down on terrorist-related financial manipulation will inevitably make life more difficult for the "home-grown" financial criminal. The Proceeds of Crime Bill envisages confiscation of assets at an earlier stage.
- Additionally, fraudsters now face the possibility of being tried by a professional tribunal instead of a lay jury if recently published recommendations by Lord Justice Auld are implemented.
- Money laundering is prevalent where there are corrupt, negligent or unaccountable governments.
- Countries with favourable tax regimes will attract 'dirty money'"
- Money laundering will take place where financial institutions who receive 'dirty money' pay only lip-service to the law.
- Money laundering can only take place where there are sophisticated professionalswho are willing to be actively engagedor shut their eyes to the truth
- She warns professionals in the financial and legal sectors to be constantly alert to being used to legitimise otherwise illegally acquired funds.
However, she points out that strides are being made to make life harder for criminals who make use of gaps in supervision of the financial system;
- The work of the Financial Action Task Force is beginning to bite. Naming and shaming "non-co-operative" countries is bringing improvements.
- The latest money laundering directive extends coverage of money laundering controls to include real estate agents, casinos, precious metals dealers and plans are in hand to include bureaux de change and cheque cashing services.
Other aspects of the speech:
- Fraud is cyclical; trend moves with the economic cycle. In an economic down-turn, insolvencies can bring fraud to light. There is an increase in frauds by directors milking assets before the receivers move in. In a more buoyant economic climate, when there is more confidence and cash, there is an increase in investment frauds.
- Prime bank instrument frauds still keep turning up. Individuals should beware of these "exclusive" instruments. The allure of being on the inside of these allegedly exclusive and secret opportunities still tempts people to pay, and subsequently lose, an up-front fee.
- Increase in sums at risk in SFO cases. Currently £2.5 billion (in 76 cases*) compared with £1.4 billion (in 81 cases) in 2000.
*(cases with investigations or proceedings underway. Excludes case appealed and confiscation proceedings)
SFO Press Office contacts:
Tel: 020 7239 7001(also 7004 & 7000 & 7190)
Mble: 0781 807 6688
Fax: 0207 837 1173
Email: press.office@sfo.gsi.gov.uk
END OF RELEASE (11 pages of speech relate).
