Restrictive Covenants
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Company bosses may be held responsible for staff fraud.
Plans are being considered by ministers to hold company bosses liable if they fail to prevent a member of staff from committing fraud.
The measures, if passed, could have wide reaching implications for those potentially liable for corporate crime.
The new measures, yet to be unveiled, follow a crackdown on corporate crime and will follow on from proposals to make company boards liable for tax evasion.
The changes should form part of the new criminal finance bill, covering money-laundering, false accounting and fraud.
The changes are designed to give the authorities greater powers to prosecute those responsible, and act as a deterrent.
A spokes person said, 'it is important that companies take all precautions to ensure staffs do not commit fraud and if a company neglects this, then those responsible can be prosecuted'.
During the recent Libor fixing scandal many were held to account but it was only in America that employers were taken to court.
The Criminal Finance Bill 2016-17
The bill is designed to amend the Proceeds of Crime Act of 2002 and will-
- Legislate on terrorist's property/assets.
- Create corporate offences, in connection with fraud including tax evasion.
In October 2016 the Bill received its first reading in the House of Commons.
For details of its progress
http://services.parliament.uk/bills/2016-17/criminalfinances.html
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