Fraud Advisory Panel

Tenth Annual Review

2007-2008

What Price Justice?

The image on the cover (right) symbolises justice.  It serves as a reminder that fighting fraud is about more than preventing financial loss; it must include fair trials of those accused of financial crime, restitution to victims and the manifestation of the rule of law.

The Fraud Advisory Panel, which this year celebrates its 10th anniversary, has consistently striven for justice in every aspect of the word in relation to financial crime.  We have drawn attention to the shortcomings of the responses to fraud by government and by business; we have examined areas of deception and dishonesty that others have paid scant regard to; we have taken the lead in advising businesses and individuals on how best they can identify fraud risks and how to protect themselves.

We have urged government to take fraud seriously; to put in place adequate legislative tools and resources for effective enforcement and to co-ordinate the efforts of those who, like us, seek to minimise the risk of financial and economic crime.  Since we started in 1998 the size of the problem has not diminished; indeed, new ways of perpetrating financial crime arise, like the Hydra’s heads; as soon as one appears to be suppressed, others spring up.  When the Panel was founded some felt we were exaggerating the problem.  Yet in the last ten years, fraud, often committed by organised crime gangs, has infiltrated almost every corner of society.

We have called for a substantive offence of fraud; for more police resources to tackle law enforcement throughout the UK; for better awareness on the part of business and the public of the dangers of fraud; for better means of asset recovery and recompense for victims.

In the past few years we have at last seen substantial and very welcome positive moves on many of the issues we have highlighted.

click above for the full report

We now have the Fraud Act 2oo6 in force, which creates a single and flexible offence of fraud and will make the prosecution of offenders more likely.  The implementation of the Government’s Fraud Review has at last started to take shape and resources have been made available to support the City of London Police Economic Crime Department, which will act as the lead force throughout England and Wales.  Fraud forums have been formed around the country, where businesses and police work together to identify risks and address them.

This is hugely encouraging, but there is no room for complacency or sitting back and feeling we have accomplished all we set out to do.  The Panel is busier than ever and never so much in demand to respond to the seemingly unending Government consultations on law reform, to advise business and the professions on fraud prevention and risk management, and to give guidance to the public on fraud awareness.  Our programmes of seminars and publications are hectic and we are hard put to respond to the requests for advice and assistance.

Yet if a group of volunteers with few resources can make a difference, what results could flow from a whole-hearted commitment by business and the state?  The Panel will always have an important role to play in the fight against fraud.  We have never shirked the difficult or unpopular topics and we have been able to call on our members, whose expertise in every aspect of fraud fighting is unrivalled, to devise strategies and to draft papers.  I am immensely grateful to all who have worked so hard for the Panel and will continue to do so, cheerfully and enthusiastically, in the knowledge that they are contributing to justice in financial crime and success in the challenges that we continue to face.

Rosalind Wright CB QC
Chairman
June 2oo8