ACI reaffirms manager liability for fraud

"It is their duty to ensure the systems and controls in place within their organisations are robust enough to swiftly identify erroneous trades or employee wrongdoing," said the ACI.

It is rare for frauds to be perpetrated through highly complex trading scams or through the actions of criminal masterminds, the ACI said. "More usually it is through a simple exploitation of lax controls, such as poor confirmation details checking, or poor oversight and challenge by a firm’s senior management."

Key