When developing a Fraud Control Policy an important part of that plan is a clear statement as to whether fraud that has been discovered will be reported to the Police. A number of issues need to be considered in making this decision:
- In some jurisdictions, it is required by law that any serious offence is report to the Police. An organisation needs to understand if such a requirement is in place in their jurisdiction;
- If an organisation does not report the matter to Police, the organisation needs to consider what message this send to other employees and volunteers;
- If an organisation does not report the matter to Police, will the person committing the fraud go on to another employer and commit fraud there?;
- By reporting the matter to Police, the organisation needs to consider if it is likely that the fraud will be reported in the media as it goes through the Court process and the potential damage this could cause the organisation;
- The organisation’s insurance policy may require the fraud to be reported to the Police.