Government fails to police fraudsters, says watchdog

FRAUD: top specialists call for national commission

Independent watchdog the Fraud Advisory Panel (FAP) has delivered a broadside at the government in its annual report, accusing it of failing to provide a joined-up approach to economic crime.The multi-disciplinary FAP - headed by Clifford Chance consultant and former Serious Fraud office director George Staple - said the police are under-resourced to fight fraud, the extent of the new Financial Services Authority's powers is uncertain, and law schools and other educators should give more priority to teaching students about financial crime.The report said organised crime is fuelling a rise in fraud and a lack of joined-up government is aggravating the problem.Mr Staple said fraud is 'a crime increasingly linked to corruption and money laundering and conducted by organised criminals'.

He added: 'Our traditional system of checks and balances is failing to cope.'There is not enough co-ordination between the 16 departments of state policing fraud, he added.

The FAP has long recommended the creation of a 'holistic' national fraud or economic crime commission, an idea recommended by Lord Roskill in his 1985 fraud trials report.City law firm Herbert Smith sponsors the FAP, which includes other City lawyers as members.A Law Society spokeswoman said: 'We recognise the continuing need to educate the profession and have issued several warning cards to solicitors as well as a guidance pack on money laundering particularly.'The establishment of our serious fraud and money laundering task force demonstrates our commitment to combat this type of crime.'Jeremy Fleming