INMA S1.3.2 Fraud risk

(1) Fraud risk is the risk of loss from:
(a) unauthorised activities such as those that breach the controls, procedures, limits and other restrictions in an INMA firm’s policies and procedures or legal or regulatory requirements;
(b) deceptive acts or omissions intended to gain advantage for the parties committing the acts or other parties; or
(c) intentional acts undertaken for personal gain or to tamper with or manipulate the financial or operational aspects of the firm’s business.
(2) An INMA firm’s risk management policy should include processes and procedures for identifying, assessing, managing and mitigating fraud risk. The policy should include:
(a) internal controls and mitigation strategies;
(b) segregation of duties at an operational level and in relation to functional reporting lines;
(c) financial accounting controls;
(d) staff training and awareness; and
(e) appropriate processes for monitoring compliance with the firm’s procedures, controls, limits and other restrictions.
Derived from QFCRA RM/2014-4 (as from 1st January 2015).