Fraud & Financial Services

Transcription

1 Fraud & Financial Services Understanding the 2017 Criminal Finances Bill This course can be presented in-house for you on a date of your choosing The Banking and Corporate Finance Training Specialist

2 Course Objectives Participants will: Understand why fraud occurs in financial markets and what motivates fraudulent behaviours Be aware of the main types of fraud methodology and emerging risks Master the extra risks created by distance and online selling Learn about the key provisions of relevant UK law Gain familiarity Course with Overview the key methods used to mitigate fraud risk and detect fraud events Get to grips with the key risks and processes involved in detecting and reporting fraudulent acts. Background of the trainer The trainer has been a specialist trainer for over 20 years whilst at the same time working as Head of Financial Crime Prevention for both national and multinational firms as well as in broader compliance roles. His primary specialism is financial crime prevention, where he works both as an author, trainer and subject matter expert, including for international accreditation bodies. He has a graduate diploma in anti-money laundering and is a member of the International Compliance Association. He is also experienced in working with retail banks, investment banks, asset managers, insurers, IFAs and insurance brokers in both retail and wholesale environments, dealing at all levels including with board executives and audit committees. Course Content Why fraudsters target financial services firms The fraud marketplace External fraud Sources of external fraud Subversion Physical acts Collusion Internal fraud Sources of internal fraud Internal corruption External corruption Facilitation and graft Collusion The fraud triangle Opportunity Pressure Rationalisation Fraud methodologies The Levy report Private sector fraud Public sector fraud Recent developments in fraud typologies

3 Distance selling risk Identity manipulation and theft Social media manipulation Links to organised crime and terrorism The legal framework Theft Act 1968 Section 1, 8, 9 and 10 offences Fraud Act 2006 Section 2,3 and 4 offences Proceeds of Crime Act 2002 Section 327, 328 and 329 offences Terrorism Act 2000 Section 15, 16, 17 and 18 offences The coming of corporate offences Data Protection Act 1998 Bribery Act 2010 Criminal Finances Bill 2017 General Date Protection Regulation Case study and team exercise The training group will be presented with a series of events and asked to analyse them to determine: What types of methodologies may have been deployed against the victims of the events? What offences may have occurred? Detection and prevention Product journey Risk analysis Risk touch points Mitigations Management information Escalation The role of identity confirmation DPA process Weaknesses The role of due diligence The role of training Identify Classify Escalate Layered security Victim typologies Perpetrator typologies Profiling Transaction monitoring Automation Management information

4 Communication Investigation and reporting Information gathering Identifying suspects Vulnerable persons risk Record keeping The role of law enforcement PEACE model of interviewing The role and use of the caution The role and use of recording The role and use of notetaking Knowledge and Suspicion Police and Criminal Evidence Act R v Da Silva Objective test File preparation Reporting Criminal property Preserving evidence Learning and future mitigation Root cause analysis The 5 whys? FME analysis Ishikawa (fishbone) analysis Operational risk model of firm goverance Governance structures Committees 3 lines of defence Monitoring and assurance Case study and team exercise In a two part exercise the group will be asked to consider: In the previous exercise, what controls may have been breached or bypassed. The group will be issued with details from an investigation file. They will be asked to consider they will be asked to consider: What has occurred? What offences have been committed? What controls have been breached? What further investigations should be considered? What initial conclusions can be drawn as to the root cause of the events. Summary Learning summary Further learning opportunities Summary of case studies

5 Course Summary With the introduction of the Criminal Finances Bill in 2017, firms will need to ensure that they have in place appropriate procedures to ensure they do not facilitate tax evasion. Tax evasion is a fraudulent act. Depending on the nature of their fraud risks, most regulated firms will already have provision in place for the prevention and investigation of fraud. However, the methods used by fraudsters are constantly evolving. This has led to the UK legal framework placing an increasing burden upon firms to prevent certain common financial crimes. This course provides a refresher on the provisions of both the Theft Act 1968 and the Fraud Act 2006 before linking these events with the wider risks faced by firms including, reporting requirements, data security and identity theft and the corporate offences firms may commit when targeted by fraudsters. It also looks at financial crime investigation as well as the pitfalls faced by firms when they attempt to prevent, detect, investigate and report fraud, theft and tax evasion.