Date: 2013-08-05

Understand common types of fraud in international trade

Fraudsters may try to steal your goods, business identity or tap into your business to launder money. Criminals may approach you through letters, a phone call, or via email. Typical scams include investment offers or opportunities to acquire new customers who you supply but never receive payment from.

'Phishing', or rogue emails asking for your business banking details, are a common way to steal money. These scams often give themselves away through the use of poor spelling and grammar.

Action Fraud is a central point of contact to call and get help if you have been a victim of fraud. Report a fraud online on the Action Fraud website

Money laundering and terrorist financing

Money laundering is the process by which funds derived from unlawful conduct are given apparent legitimacy - in essence cleaning the criminal proceeds. Terrorist financing is the process by which funds are gathered and used for terrorist activity. For more details, you should consult industry-specific guidance produced by your industry regulator or trade association. You can also find information on money laundering on the Financial Action Taskforce website . Attempts to launder money and finance terrorism may not only be directed at international trade activities - domestic business activity may also be at risk.

The Serious Organised Crime Agency (SOCA), HM Revenue & Customs (HMRC), other law enforcement agencies, regulators and professional bodies work together to combat money laundering. Certain sectors, such as financial services, money service businesses, accountancy, legal, estate agencies and casinos have legal obligations deriving from the Money Laundering regulations 2007 and the Proceeds of Crime Act 2002 (POCA) (or the Terrorism Act in the case of terrorist financing).

Under POCA, all those working in regulated sectors must report their suspicion or knowledge of money laundering to SOCA. Failing to report either is a criminal offence. Find out how to make a Suspicious Activity Report (SAR) to SOCA in the page in this guide on how to report a business crime or fraud.

Read about POCA and obligations you may have under the law on the SOCA website

VAT fraud

Missing Trader Intra-Community fraud, or carousel fraud, costs the UK at least £2 to 3 billion annually. While the frauds are carried out by organised gangs, businesses must take care to keep their VAT invoices, records and VAT numbers in order. It's important to keep complete records on file, in order to avoid becoming liable for investigation by HMRC.

If you suspect you're the victim of fraud, you should take steps to protect yourself.

Fraudsters may also attempt to steal your business identity.

( liyy )01 Dec,2010

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