Why Recruiters are looking for Accredited Suppliers

In the wake of the Criminal Finance Act, which came into effect on 30th of September 2017, we’ve seen a number of leading agencies tightening up their compliance policies. Some are now insisting on respected industry accreditations as a prerequisite for inclusion in their preferred supplier lists. It’s clear that recruiters are more concerned than ever about compliance, with an emphasis on industry accreditation. We believe this is a positive development, but it still deserves some scrutiny. So, what’s happening?

The Criminal Finance Act

When the Criminal Finance Act came into force on 30th September 2017, it created the new criminal offence of Failing to Prevent Tax Evasion. Working with suppliers who are not compliant, or failing to implement suitable vetting procedures, has always been risky but now it carries the very real threat of prosecution under the new offence, with unlimited fines and severe reputational damage as potential consequences. As a result, recruiters urgently need to take control of their supply chains, which means implementing a preferred supplier list (PSL) of vetted, compliant suppliers.

Why accreditation is important

For a recruiter, vetting every supplier to the extent required to protect your business will be time consuming and possibly expensive. It could also cause delays and disruption in your supply chain, which could potentially alienate your clients, as well as using resources you’d rather put into your core business.

At the same time, if you fail to vet your suppliers the consequences could be extremely serious. Ignoring this issue is simply not an option.

By only working with FCSA Accredited Members, a recruiter can effectively sidestep this issue. FCSA Accredited Members come pre-vetted against the FCSA’s rigorous Compliance Code, so recruiters can be sure they are 100% compliant. This allows the recruiters to protect themselves by ensuring compliance across their supply chain without the cost and work involved in vetting suppliers themselves.

This is why several leading recruiters have already begun to insist that their suppliers must either be FCSA Accredited Members, or accredited by Professional Passport.

It should be noted that FCSA Associate Members have not passed accreditation against the FCSA Compliance Code, so we advise you to only work with Accredited Members.

How Orange Genie can help

Orange Genie are FCSA Accredited Members, and we’re also accredited by Professional Passport. We’re the only contractor support company to have both accreditations, and we have many years’ experience of supporting recruiters and contractors.

Through Orange Genie Compliance we can help you ensure compliance and manage your response to legislative change. We’ll assess your needs and provide training for all your staff, allowing you to concentrate on your core business with confidence.

If you have questions about the Criminal Finance Act, need help implementing a PSL, or if Orange Genie can help in any way, please contact our expert team on 01296 468483 or email recruiters@orangegenie.com.

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