The recent SNP embezzlement case shows how even organisations with formal controls in place can suffer major losses when a trusted insider is able to override those controls. There are clear lessons for owner‑managed businesses that want to protect themselves. 

What happened at the SNP?

Over more than a decade, former SNP chief executive Peter Murrell embezzled around £400,000 from the party’s principal bank account, using party cards, bank transfers and falsified invoices to fund personal spending on items including a motorhome, cars and luxury goods. 

He manipulated accounting codes and submitted forged paperwork to conceal the thefts and, in May 2026, pleaded guilty at the High Court in Edinburgh to embezzling £400,310.65 between 2010 and 2022, receiving a custodial sentence the following month. 

Internal override: controls on paper, gaps in practice

Commentary on the case has highlighted ‘internal override’ as the key issue, where controls exist formally, but can be bypassed by a trusted insider. 

In the SNP, Murrell was the one senior figure who could authorise, pay and record transactions. Exceptions to the designated, normal processes became routine, making it harder for colleagues to spot problems. 

This pattern is common in smaller businesses where a founder or long‑standing manager has a variety of responsibilities and approves most spending.

Culture, governance and trust

Operation Branchform, the police investigation into SNP finances, began after complaints about how donations had been used and whether funds raised for a specific campaign had been ring‑fenced as promised. Donors and members expected transparency and assurance but did not see clear reporting on the use of those funds, which eroded trust once concerns surfaced. 

Owner‑managed businesses rely heavily on trust from staff, customers and investors. A culture that discourages questions or treats scrutiny as disloyal can unintentionally create space for misuse of funds. The SNP’s experience, with resignations, police involvement and reputational damage, shows how quickly confidence can be undermined when governance fails. 

Practical steps to strengthen governance

There are some steps you can take to strengthen governance in your business, including the following:

• Encourage questions and make it safe to challenge unusual spending. 
• Give someone explicit responsibility for reviewing financial reports and key decisions. 
• Share regular, understandable financial updates with key stakeholders. 
• Document and follow clear policies for donations, restricted funds or client monies. 

Practical steps to reduce override

There are some steps you can take to reduce the risk of override, including the following:

• Separate duties so no one person can both approve payments and reconcile the bank. 
• Set clear approval limits, with second‑person sign‑off above defined thresholds.
• Use system‑based approval workflows rather than informal, ad‑hoc approvals. 
• Keep and review documentation for all significant payments. 

Using systems to spot red flags

Court reports noted Murrell made hundreds of purchases over many years. In a manual environment that sort of activity can blend into the everyday noise, but modern accounting systems can help business owners spot anomalies sooner. 

Useful examples include:

• Independent bank reconciliations carried out regularly. 
• Periodic reviews of spending by supplier, category and user to highlight unusual trends. 
• Reports or alerts focused on higher‑risk areas such as card transactions and payments to new suppliers.

Key lessons for owner‑managed businesses

From the SNP case, several clear lessons emerge:

• Long‑term trust still needs robust, independent controls. 
• Fraud is often simple: cards, transfers and invoices can be misused without sophisticated techniques. 
• Governance failures can have serious reputational and operational consequences. 

If you have any reservations around the resilience of your systems, now is a good time to take a closer look at them. First steps should include mapping those people who can authorise, pay and record transactions, tighten your approval limits, and make full use of the control features in your accounting software. 

If you’d like some help to explore how the SNP’s experience might apply to a business and to look at where your own controls might be vulnerable, please get in touch. We’re here to help!