Scotland Has Become One of the Fraud Centers

Blog / Scotland Has Become One of the Fraud Centers

White-collar crimes have shown up in the last two decades in the UK. The most well-known incidents are Barings Bank, the Bank of Credit and Commerce International (BCCI), and Polly Peck. While incidents like the above ones have not been released in recent years, white-collar crime is still making headlines, and data show that corporate fraud has surged throughout the covid-19 pandemic. It remains a tangle from a legal standpoint when it comes to the systems in place.

The current postponement of a trial against three former G4S administrators accused of cheating the state on prisoner tagging contracts raises concerns about the time it takes to pursue a financial crime.

As a result, the trial is anticipated to take place about ten years after the first Serious Fraud Office (SFO) investigations. The SFO launched an investigation into G4S in 2013 and reached a £44 million plea agreement with the corporation to settle three fraud charges brought against the Ministry of Justice between 2011 and 2012. G4S admitted responsibility for a deceptive strategy involving the genuine earnings earned from a contract to tag inmates. In exchange for paying a hefty fine, the corporation was able to avoid criminal prosecution.

Financial crime prosecution is in the public interest, but it presents a variety of challenges for the Crown Office and Procurator Fiscal Service in Scotland when confronted with a complicated fraudulent operation. Procedural flaws in the Crown's disclosure requirements (sometimes involving thousands of documents) are not uncommon.

What Exactly is a White-collar Crime?

White-collar crime is a type of nonviolent crime in which the primary motivation is usually cash-on-hand. White-collar criminals typically have a professional position of authority and/or prestige, with significantly above-average pay.

White-collar Crime in Scotland

As proven by the indictment of a number of professionals and corporations, the resources and skills allocated to pursuing financial crimes in Scotland are frequently unsatisfactory. As a result, Scotland has become a financial crime hotspot for people wishing to perpetrate money laundering and fraud to some level. For example, between 2017 and 2020, a Scottish business called Remini Consulting was involved in an internet investment fraud that netted € 10 million per month across Europe.

NatWest Bank pled guilty last month to £ 400 million in non-prevention of money laundering offenses, and a large punishment is set to be imposed by the court next month. In addition, the newly imposed economic crime levy by the UK government will be paid by firms subject to money laundering legislation. The goal is to support increased government measures to combat money laundering, but whether such a fee would help solve the overall problem remains to be seen.

Economic crime demands significant resources, as well as the recruiting and training of detectives in order for them to aid in the prosecution of these crimes. Prosecutors recently faced the prospect of reviewing 300,000 encrypted WhatsApp chats in a recent case. Employees sending ephemeral communications pose various challenges for businesses attempting to guarantee that all necessary regulatory compliance standards are followed.

Comply with Sanction Scanner

Audits and continual improvement within a company's compliance process can aid in the detection and disruption of financial crime. Sanction Scanner has cutting-edge AML software with the following features, Know Your Customer (KYC), Customer Due Diligence (CDD), Transaction Screening, Transaction Monitoring. You can make the AML compliance of your financial institution more effective and adaptable by implementing Sanction Scanner solutions. Wİth the help of our software, you can comply with the local and global regulatory authorities the amendments made to enhance the AML/CFT regulations.


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