16/February/2011

http://www.jordans.co.uk/newsandpressreleases/antimoney_laundering_reports_big_society_could_lead_to_greater_fraud_losses.html

Anti-money laundering reports could be more in demand with the Big Society, as it could yield greater fraud losses, according to a new report.

PKF Accountants and the University of Portsmouth's Centre for Counter Fraud Studies stated that 93 per cent of public sector organisations have a system in place for dealing with illegal financial activity.

This is in contrast to less than half of voluntary bodies, and 75 per cent of private companies which have the same facilities up and running.

Writing for Public Finance, Jim Gee, report author, said that organisations in the private sector were "poorly protected against fraud".

"The evidence is clear, unless private companies and voluntary sector organisations make some rapid improvements, this will mean a bigger role for entities that are less well protected against fraud, and bigger fraud losses will inevitably follow," he added.

Launching the Big Society plans last year, prime minister David Cameron said that groups in the community should be able to run post offices, libraries and transport services.