Ernst & Young's John Smart talks about the new law
Commenting on the Fraud Act 2006 becoming law, John Smart, fraud partner at Ernst & Young, said: "The Fraud Act 2006, while welcome, is likely to have little immediate effect on businesses because it's main purpose is to speed fraud cases through the Courts. It does not address the major bottleneck - a lack of police investigation resources.
"The increased scope of sentencing powers available under the Act will have only a marginal deterrent effect because white-collar fraudsters know that the level of detection and prosecution continues to be low."
Smart concluded, "The best thing the business community can do is to continue to protect itself by adopting a strong anti-fraud culture."
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