is the use of false representations, dishonest conduct or abuse of position to obtain a gain or cause loss. risk is not always the same as money laundering risk. A transaction may present little money laundering risk but still expose clients, lenders, counterparties or the Firm to significant fraud risk.
Common examples encountered by law firms include:
Lawyers should remain alert to identity fraud, payment diversion fraud, property fraud, sham transactions, misuse of client account facilities, forged documents and misleading information provided by clients or third parties. Particular care should be taken where there are unusual payment arrangements, unexplained transaction structures, concerns regarding the accuracy of information provided, or circumstances suggesting that a client, colleague or third party may be acting dishonestly.
The Firm takes a zero-tolerance approach to fraud and adopts a risk-based approach to fraud prevention. The Firm maintains a Risk Assessment which identifies the principal fraud risks faced by the Firm and the controls implemented to mitigate those risks.
Any lawyer or member of staff who becomes aware of or suspects fraudulent, dishonest or deceptive conduct must report their concerns promptly to the Director of Operations and Compliance or in accordance with the Firm's Speaking Up Policy.
Compliance with the Firm's client onboarding, due diligence, supervision, financial controls and information security procedures forms an important part of the Firm's fraud prevention framework. The Firm also maintains procedures designed to support compliance with the failure to prevent fraud offence introduced by the Economic Crime and Corporate Transparency Act 2023.