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
