Fatfish Group (ASX:FFG) took immediate steps to terminate the engagement of an unnamed external Australian financial consultant after it became aware of potential improper conduct, according to a Friday Australian bourse filing.

The alleged conduct involved the possibility of its bank accounts being used to receive and transit funds relating to fraudulent goods and services tax refunds from the Australian Taxation Office over several years.

It engaged a corporate governance advisory firm and a new company secretariat and also appointed a new external Australian financial consultant to initiate an internal audit.

It also appointed Hamilton Locke as its Australian legal counsel to advise on the matter, including potential recovery actions.

Fatfish is not able to ascertain the financial impact of the matter, if any, at present.