Forensic accountants at PKF accountants & business advisers have warned the ₤3.7bn loss at French bank Société Générale highlights the continuing lack of controls at some major financial institutions.

‘The lessons of the Nick Leeson and Barings case in 1995 appear to have been forgotten by some. The scale of this clearly surpasses that fraud and is truly shocking,’ David Dearman, PKF partner, said.

He said the biggest risk was complacency. ‘It is highly important that once procedures are in place, they are strictly adhered to, monitored and regularly reviewed - staff must understand and be trained in identifying risk and, where breaches occur, effective disciplinary action should be taken so that the seriousness is brought home,’ Dearman said.

’I can only trust that the procedures adopted in the City a decade ago are working and being regularly reviewed but there will undoubtedly be some very nervous senior people in the industry today. Confidence requires that there are effective checks and balances in place and that they’re being audited and lessons learned.’

Further reading:

Société Générale announces massive write-down - and fraud