Fraud prevention or financial fallout? Navigating the new failure to prevent fraud offence

The Economic Crime and Corporate Transparency Act 2023 introduces a new offence of failure to prevent fraud, which comes into force on 1 September 2025. This marks a significant shift in corporate criminal liability, as it imposes responsibility on organisations for fraud committed by associated persons, regardless of whether senior management were aware or involved.

In an article for PDP Journals’ Compliance & Risk publication, Paul Henty and Deen Taj explore the scope of the offence, the government’s published guidance, and the practical implications for compliance and governance. The article considers’ consider what constitutes reasonable prevention procedures, how the offence aligns with existing legal obligations, and the steps organisations should now take to prepare.

This article was first published by PDP Compliance Newsletter March 2025.

Fraud prevention or financial fallout… (Compliance & Risk, Volume 14, Issue 2)