The new ‘failure to prevent’ fraud criminal offence: Abigail Rushton & Rhys Novak set out the steps corporate bodies should be taking now to prepare
- The government has confirmed a new failure to prevent fraud criminal offence. Large corporate bodies doing business in the UK and those working for it will be caught by the new legislation.
- Prosecutors will only have to show a lack of reasonable procedures in place to prevent the offences.
- Large corporate bodies should start preparing now by: assessing and managing risk; reviewing and implementing fraud prevention and detection measures; and confirming their response strategy.
Assuming it makes it onto the statute book, the Economic Crime and Corporate Transparency Bill 2022-2023 (the Bill) is set to be one of the biggest changes to laws tackling economic crime in over a decade. Businesses faced with issues of fraud and false accounting would do well to keep an eye on its progress and start planning now for its entry into force.
It is making its way through Parliament and is currently at
