We’re in a time of unprecedented disruption. The ongoing public health crisis, combined with an uncertain economic outlook, have plunged the world into unchartered territory.

But one thing that’s clear is that fraud will flourish in this perfect storm of instablility.

Chair of our Global White Collar Practice Scott Hershman explains: “The financial crisis of 2008 illustrated how a global downturn creates favorable conditions for fraudulent activity.

“Now, with so many governments across the world having introduced massive stimulus programs as a result of Covid-19, we expect a similar problem, but on a much wider scale.

“This creates huge and diverse threats to our clients as they rush to comply with ever-changing regulations and laws.”

This is where the Firm can help. We’re already assisting several clients to audit their control mechanisms, identify and address weaknesses, and train their people on compliance.

The threat is made even greater, because the pandemic has put strain on businesses already trying to adapt to remote working and new auditing processes.

Meanwhile, governments and regulators are beginning to catch up on fraud following a period of crisis management.

“We’re living in a time of adversity, but it’s also an unrivalled opportunity for us to collaborate with our clients in new ways and to introduce our White Collar team to clients who’ve never worked with us previously.”

Clients we’re working with include Microsoft, Daimler, Saudi Aramco, Facebook, BNP Paribas, Deutsche Bank, Vodafone, Credit Agricole, Volkswagen, JBS and Gilead Sciences.

Scott says: “It can’t be overstated how important it is to protect our clients, because the cost of non-compliance is devastating.

“The risk can be reduced significantly with the introduction of dedicated fraud and compliance training which, as a global firm, we’re uniquely well placed to provide.”

The regulatory situation is changing rapidly across all jurisdictions, as evidenced in the United States, where the Department of Financial Services recently introduced enhanced regulations in areas including money laundering, cyber security and bank secrecy.

“We believe this is just the beginning,” says Scott. “It will take time for the enforcement agencies to introduce tighter regulations and catch up with criminal activity, (such as insider trading or fraud related to government stimulus packages), but we’re beginning to see this happen.

“That’s why the time is right for people across the Firm to make their clients aware of the services we offer.”

According to PwC’s 2020 Global Economic Crime & Fraud Survey, companies with a dedicated fraud program reportedly spent 42% less on response and 17% less on remediation costs than those companies with no program in place.

Where bribery or corruption was experienced, companies with a dedicated bribery and corruption program spent 58% less on remediation than those without.

Scott says: “The momentum is building, so it’s critical we talk to clients and explain how we can help them get up to speed on the complete range of threats across all their jurisdictions.

“We’re living in a time of adversity, but it’s also an unrivalled opportunity for us to collaborate with our clients in new ways and to introduce our White Collar team to clients who’ve never worked with us previously.”

If you would like to find out more, please contact a member of the White Collar team, reach out to Scott or visit the team’s Connect page. The team has lawyers in London, Paris, Berlin, Frankfurt, Beijing, Boston, Chicago, Los Angeles, Miami, Washington, D.C., and New York.