Review your anti-laundering procedures, companies told

COMPANIES have been urged to review their anti-money laundering arrangements to avoid becoming victims of fraud.

DS Andrew Whitton

COMPANIES have been urged to review their anti-money laundering arrangements to avoid becoming victims of fraud.

DS Andrew Whitton, pictured, of Guernsey Police, who leads the fraud department, said mandate fraud was becoming more common and that companies need to take note.

‘Fraudsters rely on details not being checked,’ he said.

‘It is more or less impossible to track where the fraudsters are. They are well practised and good at what they do.’

Mandate fraud is where someone persuades a company to change a direct debit, standing order or bank transfer by mandate by pretending to be from an organisation that regular payments are already made to, such as a contractor or business supplier.

The payment is made to the new account, which belongs to the fraudster. The money then ‘starbursts’ into a number of other accounts in hard-to-reach jurisdictions, making it virtually impossible to trace. Mandate fraud is similar to the recent £2.6m scam of the States, said DS Whitton.

Comments for: "Review your anti-laundering procedures, companies told "

Jeff

Well this did make me laugh. The States (via the police) are telling licensed fiduciary/investment/banking businesses to look out for fraud and ensure good procedures are put in place.

Well we wouldn't have a licence if found to have inadequate procedures so how come the States were so slow to sort themselves out.

I've said it before on here and will say it again: the States of Guernsey are acting in a fiduciary capacity for every tax payer in Guernsey so they too should be subject to the same licence criteria as the finance industry.