New UK fraud rules intensify global focus on third-party risk
Firms will have responsibility to ensure “associated” persons are taking steps to prevent fraud
A new UK law introducing penalties for those who fail to prevent fraud is set to create new pressures for third-party due diligence by financial institutions, and will reach beyond the UK’s borders, financial crime experts are warning.
“Employees, agents, subsidiaries: anyone who’s acting on behalf of the company is an associated person, so if one of those associates commits fraud, that’s it,” says Siobhain Egan, financial crime director at Lewis Nedas Law.
The Economic Crime and Corporate
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