Reporting fraud – managers’ obligations

The article “Managers could be jailed for fraud of others” ( FTW May 22, 2009) has made many managers sit up and take notice of their obligations. One of our readers queried whether the legal obligation by people at middle management level and up to the police meant that internal action could not be taken. In response, Trevor White, director of forensic services for PricewaterhouseCoopers, says: “No, this definitely does not mean that companies may not take internal action against a fraudster. “It goes on to say that they are legally required to report it to the police. This is above or in addition to any other action they may decide to take and is in fact the minimum they are legally required to do.”