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ACI Makes Statement on Fraud

ACI – The Financial Markets Association was shocked by the news of the suspected fraud within the American subsidiary of one of the most reputable Irish banks.

The fraudulent actions of an individual or a group of individuals have cast a shadow over the entire industry whereas thousands of other dealers, including other staff of Allied Irish Bank and its subsidiaries, are conducting their daily business in a highly professional way and observing the highest ethical standards.

As the largest global trade association in the wholesale financial markets, ACI feels that it has a responsibility for the smooth functioning of the markets and for the professional and ethical behaviour of its members.

To achieve this, ACI has, through the introduction in 2000 of The Model Code, defined global benchmarks for ethical standards in the marketplace. Additionally, through its globally available suite of examinations, it has provided the industry with a method of evaluating the knowledge base of its front, back and middle office staff.

The global acceptance of The Model Code and the success of its examination programme prove that industry and the authorities believe in, and support what we are trying to achieve.

In this particular instance ACI draws attention to the following sections of The Model Code:

Chapter III (Section 1) Back office location & segregation of duties/reporting.

Chapter V (Section 1) Authorisation and responsibility for dealing activity.

Chapter IX General Risk Management Principles.

Although ACI realises that fraud cannot always be avoided, we call upon the authorities and industry to co-operate even closer with the ACI, which is represented in almost 80 countries, in further developing global standards for our industry, each with its own area of responsibility.

Heering Ligthart


ACI -The Financial Markets Association

Profit & Loss

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