Failure to Prevent Fraud Offence - The Importance of a Detailed Risk Assessment

Описание: The Economic Crime and Corporate Transparency Act 2023 (ECCTA) aims to strengthen corporate governance and tackle economic crime in the UK. It contains, among other things, a new corporate offence of failure to prevent fraud, which came into force on 1 September 2025.

Under the offence, an organisation may be criminally liable where an employee, agent, subsidiary, or other “associated person”, commits a fraud intending to benefit the organisation and the organisation did not have reasonable fraud prevention procedures in place. In certain circumstances, the offence will also apply where the fraud offence is committed with the intention of benefiting a client of the organisation.

This short video explains more and the importance of a detailed risk assessment.