| dc.description.abstract | Corporate fraud is a prominent and widely acknowledged offense by both corporate
and legal communities. The Association of Certified Fraud Examiners in their Report to the
Nations 2022 based on across-country research, revealed that companies lose 5 percent of their
annual revenue due to occupational fraud. Moreover, the elevated levels of occupational fraud
led to the collapse of the companies. In occupational fraud, the fraudster is the occupant or
officer of a corporation. However, corporate criminal liability is the liability imposed upon a
corporation for any criminal acts committed by any natural persons who are legally authorized
to function as the company’s corporate legal personality. However, due to loopholes in the
existing domestic anti-fraud legal framework fraud committed by an individual or group of
individuals in collusion employed in a corporation for their self-enrichment able to be tainted
and assign their fraudulent acts were committed by the corporate legal personality based on the
principle of corporate legal personality. Thus, despite corporations being the actual victims
they become the fraudsters before the prevailing domestic law. This paper addresses the said
gap in the existing domestic anti-fraud legal system. Also, to find legal measures to prevent and
detect occupational fraud in Sri Lanka. This is qualitative doctrinal socio-legal research. The
findings of the study affirmed the conviction of occupational fraudsters is hard due to the
absence of necessary provisions in the domestic anti-fraud legal system. Hence, the said gap in
the law paved the way for occupational fraudsters to commit corporate scandals in the name
of corporate fraud. Therefore, the prevention of occupational fraud plays a pivotal forerunner
role in preventing corporate fraud. | en_US |
