On 6 November 2024, the government announced that the new failure to prevent fraud offence included in the Economic Crime and Corporate Transparency Act 2023 will come into force on 1 September 2025 (Government Press Release). The new offence widens the scope of corporate criminal liability, holding large organisations and partnerships accountable for failure to prevent fraud offences committed by their employees or associates (see FC Feature 9 November 2023). The Economic Crime and Corporate Transparency Act 2023 (Commencement No. 3) Regulations 2024, which were made on 5 November 2024, will bring into force the relevant provisions of ECCTA 2023 (ss 199 to 206 and Schedule 13 ECCTA 2023) on 1 September 2025.
The government is required to publish guidance to explain the fraud prevention procedures that organisations should have in place to provide a defence in the event of prosecution (s 204) and the government has now published this guidance (Government Guidance: Failure to prevent fraud).
First published on the Corporate News Service on 7 November 2024.
Want to view more content like this? Or view our previous features? Sign up for a Free Trial to our service.
To view our previous blogs, please visit the blog home page.