Do I Need a Forensic Accountant?

Those facing complex White Collar Crime allegations have often approached me with one specific question: Do I need a forensic account? The answer depends on several factors. Any financial crime exposure is bad for any business, no matter how large or small. There is a growing desire to prosecute white-collar criminals, but who can identify when a crime has happened? That task is best handled by a forensic accountant.

Forensic accountants play a crucial role in Proceeds of Crime Applications, (POCA) due to their specialised skills in financial analysis, investigation, and understanding of complex financial systems. Their involvement is significant for several reasons:

1. Scoping and Investigation: Forensic Accountants can take a holistic view of a business and draw information from across the business to create a cohesive narrative. They are practiced in quickly spotting trends and patterns that help prioritise investigations to the areas with the highest risk.

2. Tracing and Identifying Assets: Forensic accountants are skilled at tracing and identifying assets that may be hidden, laundered, or otherwise disguised by criminals. This is essential in Proceeds of Crime Applications, where the aim is to confiscate assets derived from criminal activities and lifestyles.

3. Valuation of Assets: Forensic Accountants can accurately value various types of assets, including those that are not straightforward, such as intangible assets or complex financial instruments. Proper valuation is critical in ensuring that the proceeds of crime are fully accounted for. It also ensures a proper valuation is placed on assets, including land and other tangible assets.

4. Evidence Gathering and Analysis: Forensic accountants collect and analyse financial data, which can be used as evidence in court. Their ability to independently review and present complex financial information in a clear and concise manner is of the utmost importance in legal proceedings.

5. Compliance and Reporting: They ensure compliance with legal and regulatory requirements related to proceeds of crime legislation, including Money Laundering compliance. This includes preparing detailed reports that comply with legal standards and can withstand scrutiny in court.

6. Expert Evidence: Forensic accountants often provide expert evidence in court, explaining their findings and the financial implications of the crime. Their expertise can be crucial in securing convictions and obtaining court orders for asset confiscation. They can also give evidence for those accused of financial crime/ applications in counter-attacking the prosecution case, or in support of negotiations about the quantum of any fine or other penalty ordered by the court.

7. Support for Law Enforcement and Legal Teams: They work closely with law enforcement agencies and legal teams, providing the financial expertise needed to build strong cases. Their involvement can enhance the effectiveness of investigations and prosecutions, as well as bolstering a Defence case.

8. Preventing Future Crimes: By uncovering the methods used to launder money or hide assets, forensic accountants help to develop strategies and systems to prevent future financial crimes. They can also show a court there has been full compliance with various regulatory and legislative rules, thus availing a corporate or individual of mitigation against any criminality found.

Given these roles, the instruction of forensic accountants in Proceeds of Crime Applications, is significant. Their expertise ensures that financial crimes are effectively investigated, prosecuted, as well as properly defended.

Please contact George Kampanella at our Carter Lane office on 020 3319 1198 or click here to read more about our White Collar Crime Services.