Directors' strict liability to address fraud, bribery and corruption

Last year, the Commonwealth Bank notified me that there were several fraudulent transactions on my debit card at a church in the United States. I was the victim of cybercrime, and this happened despite the steps I take to protect my details, highlighting just how easy it is for perpetrators. Our company is increasingly vulnerable as potential victims of white-collar crime and cybercrime, and you should understand what these mean. White-collar crimes are non-violent crimes committed in the course of a person’s work or profession, such as fraud (Polk 1999, 5). Cybercrime is a broad term that encompasses crimes involving computers and other information communications technologies, such as hacking or identity theft (Attorney-General’s Department 2013, 4).

(Swayne 2013) 

The legislature has attempted to minimise these incidences of fraud, bribery and corruption by introducing strict liability to hold directors liable when they are not at fault. Strict liability applies to offences where the prosecution is not required to prove mens rea (Australian Law Reform Commission 2016, 287). As a result, it is essential that directors in our company exercise care and diligence to put adequate controls in place and protect against these offences. This is a mechanism to address the continuing problem in the corporate world, and if directors take all reasonable steps, they are less likely to be held personally liable.

(Clifford Chance 2015)

Relevant Links
To learn more about white-collar crime and why adequate controls are important, you can read about the high-profile case of Joel Morehu-Barlow here:
http://www.theaustralian.com.au/news/nation/fake-prince-joel-morehu-barlow-admits-theft-of-16m-from-queensland-health/story-e6frg6nf-1226600526411

To find out how to protect your credit card, you can read tips from the Commonwealth Bank here:
https://www.commbank.com.au/personal/can/credit-cards/tips-for-credit-card-security.html

References
Attorney-General’s Department. 2013. National Plan to Combat Cybercrime. Accessed April 11, 2016.
https://www.ag.gov.au/CrimeAndCorruption/Cybercrime/Documents/national-plan-to-combat-cybercrime.pdf.

Australian Law Reform Commission. 2016. Traditional Rights and Freedoms Encroachments by Commonwealth Laws. Accessed April 11, 2016. https://www.alrc.gov.au/publications/freedoms-alrc129.

Clifford Chance. 2015. “Directors' duties under Australian law.” YouTube video, posted January 22. Accessed April 19, 2016. https://www.youtube.com/watch?v=e97IiYN2wl0.

Commonwealth Bank of Australia. “Tips for credit card security.” Accessed April 19, 2016.
https://www.commbank.com.au/personal/can/credit-cards/tips-for-credit-card-security.html.

Elks, Sarah. 2013. “Fake prince Joel Morehu-Barlow sentenced to 14 years for theft of $16m from Queensland Health.” The Australian, March 19. Accessed April 19, 2016.
http://www.theaustralian.com.au/news/nation/fake-prince-joel-morehu-barlow-admits-theft-of-16m-from-queensland-health/story-e6frg6nf-1226600526411.

Polk, Ken. 1999. “White collar crime.” Legaldate 11 (2): 5-7. Accessed April 11, 2016.
http://search.informit.com.au.ezp01.library.qut.edu.au/fullText;dn=19994333;res=AGISPT.

Swayne, Matthew. 2013. “White Collar Crime's Glass Ceiling: It's Still a Man's World.” Image. Accessed April 19, 2016.
http://vitaminw.co/business/white-collar-crime-still-boys%E2%80%99-club.