91探花

Following Royal Assent almost a year ago to the Economic Crime and Corporate Transparency Act – which aims to enhance consumer and economic protections and combat economic crime – the government has now published its long-awaited . 

The offence will hold large organisations to account for any fraud committed by their employees, agents, subsidiaries or ‘associated persons’ who provide services for or on behalf of the organisation, where the fraud has benefited the organisation or their clients. 

Erin Sims, associate director and financial services senior analyst at 91探花 said: “The long-awaited guidance for the ‘failure to prevent fraud’ offence has finally landed and provides businesses with a roadmap to implement effective fraud prevention procedures before the offence takes effect on 1 September 2025. This is a significant change to corporate culture and internal controls, creating a shift in compliance obligations reminiscent of the UK Bribery Act.

“It is no surprise that the Serious Fraud Office’s budget has been bolstered by an extra £9.3m to help crack down on financial crime as this new offence will strengthen its ability to combat fraud. This is needed as fraud cases continue to increase, but prosecutions are down.

“It is game changing for larger organisations, but the consequences will also be felt in smaller firms engaged in business with these organisations, as well as foreign entities with UK ties. It’s important for all organisations to get their house in order and consider whether they are impacted by the legislation to protect against prosecution.

“Clarity from the guidance will be welcome news to many companies that are already responding by bolstering fraud prevention controls, underscoring the commitment to the new standards and focus on countering fraud.”