The Fraud Policy Unit within the Economic Crime Directorate Homeland Security Group have announced the below:
The Economic Crime and Corporate Transparency Act 2023 introduces a new corporate criminal offence of failure to prevent fraud: Economic Crime and Corporate Transparency Act 2023 (legislation.gov.uk) clauses 199-206 and Schedule 13.
This new offence will apply to companies that are incorporated and meet the criteria: (2 or 3 of the following: more than 250 employees; turnover of more than £36m; assets of more than £18m).
Government has published a factsheet: Factsheet: failure to prevent fraud offence – GOV.UK (www.gov.uk) and is currently working on the guidance. In broad terms, the guidance is similar to that for the offences of failure to prevent bribery Bribery Act 2010 guidance – GOV.UK (www.gov.uk) and failure to prevent the criminal facilitation of tax evasion: Corporate offences for failing to prevent criminal facilitation of tax evasion – GOV.UK (www.gov.uk).
Government anticipates publishing the guidance in the spring. The offence will come into effect when the guidance is published and the implementation period (expected to be 4-6 months) is complete.
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