EU Commission move to close cheque fraud loophole - Liz Lynne (Bromsgrove Liberal Democrats)

Bromsgrove Liberal Democrats <raygeoffray@aol.com>

EU Commission move to close cheque fraud loophole - Liz Lynne

March 17, 2010 11:39 AM
Originally published by Liz Lynne MEP

Fraud risk: In several EU countries you can still cash a cheque into a personal account when it has been made out to a business.

Local Lib Dem Euro MP Liz Lynne has welcomed a pledge from the European Commission that they will seek to close a loophole in cheque-cashing policy that has led to Britons abroad being defrauded by millions of pounds.

In several EU countries it is still possible to cash a cheque into a personal account when it has been made out to a business. People can do this by simply signing the back of the cheque. This was banned in the UK in 2006, but there are no common European rules.

Liz Lynne, Vice President of the European Parliament's Employment and Social Affairs Committee, welcomed the assurance from the new Internal Market Commissioner Michael Barnier:

"Many British people working or on holiday in other European countries have been the victim of fraudsters exploiting this loophole. The situation is unacceptable and it is high time to act.

"The UK has shown that this loophole can be closed without causing business any problems. The rest of the EU should now follow suit.

"This might be possible through a Commission directive or by coordinated action by individual member states.

"It is excellent news that Commissioner Barnier shares the concerns of LibDem MEPs who have been highlighting this problem for some time."

ENDS.

NOTES TO EDITORS

The issue of cheque loophole fraud was highlighted last year with the imprisonment of a British national in France. Graham Templeton was convicted of defrauding a group of British citizens living in the Dordogne in France (the total sum of the fraud was two million euros).

Templeton persuaded his victims to make out cheques to the Societe Generale bank, but he then signed the back and paid them into his personal account.