Serious Fraud Office (SFO) chief investigator Michael Gallagher has discussed the role accountants play in the fight against economic crime, at the ICAEW’s ethics event held on 23 October 2024.
Speaking at Chartered Accountants’ Hall to mark Global Ethics Day, Michael Gallagher highlighted that forensic accountants are integral to the SFO’s operations, collaborating with various stakeholders to uphold ethical standards.
Gallagher noted that forensic accountants work alongside digital forensic experts, lawyers, and investigators, including a specialised team focused on crypto-related matters.
The SFO also runs an accountancy apprenticeship scheme to nurture talent in this field.
Over the past four years, the SFO has recovered approximately £160m ($208m) of criminal proceeds for fraud victims and has partnered with international entities to return funds to countries such as Brazil, Chad, and Tanzania.
The SFO’s Deferred Prosecution Agreements have generated more than £1bn for HM Treasury.
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By GlobalDataCurrently, around 20 individuals from various businesses and organisations are facing SFO charges related to fraud activities exceeding £100m.
Michael Gallagher pointed out that the scale of the SFO’s responsibilities is expanding, with fraud accounting for about 40% of all crime in the UK.
He also noted rising instances of false accounting, false invoicing, and recovery fraud.
Last year saw a spike in cases of greenwashing and fraudulent schemes related to green investment opportunities, a trend that persists.
In addition, Michael Gallagher highlighted the challenges posed by technology, which enables the exploitation and manipulation of data, thereby increasing the vulnerability of victims.
The rise of cryptocurrency and decentralised currency complicates money laundering investigations due to the rapid and multiple movements of funds internationally.
Michael Gallagher identified the 2023 Economic Crime and Corporate Transparency Act (ECCTA) as a valuable legislative tool for the SFO.
Under the new Failure to Prevent regime, companies are required to take proactive measures to prevent fraud, or they may face criminal liability.
ICAEW Economic Crime manager Mike Miller said: “On the plus side, if the ECCTA does generally boost companies’ awareness of how they may be vulnerable to fraud and the measures they need to put in place – for example, improved training – that’s probably a positive outcome.”
In October 2024, ICAEW announced an overhaul of its Associate Chartered Accountant qualification.
