03 March 2023 / Anita Clifford

Issue: 8015 / Categories: Features , Fraud , Criminal , Regulatory , Financial services litigation

Failure to prevent fraud: catch me if you can

Failure to prevent fraud… and more? Anita Clifford reports on the broadening scope of the proposed ‘failure to prevent’ offences & the likelihood of their success

The government has announced that new failure to prevent offences provisions will be proposed as an amendment to the Economic Crime and Transparency Bill currently before Parliament.
The provisions are likely to attract cross-party support and would make it an offence for an organisation to fail to prevent fraud and possibly also money laundering.
Organisations will be compelled to review their internal controls.
If the offence includes the failure to prevent money laundering just how the legislation will interact with anti-money laundering regulation will need to be worked out.

A radical expansion of the failure to prevent model is in sight following the government’s backing of a new corporate offence of failure to prevent (FTP) fraud and possibly other conduct such as money laundering. On 25 January 2023, security minister Tom Tugendhat MP announced that

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Failure to prevent fraud: catch me if you can

Failure to prevent fraud… and more? Anita Clifford reports on the broadening scope of the proposed ‘failure to prevent’ offences & the likelihood of their success

The government has announced that new failure to prevent offences provisions will be proposed as an amendment to the Economic Crime and Transparency Bill currently before Parliament.
The provisions are likely to attract cross-party support and would make it an offence for an organisation to fail to prevent fraud and possibly also money laundering.
Organisations will be compelled to review their internal controls.
If the offence includes the failure to prevent money laundering just how the legislation will interact with anti-money laundering regulation will need to be worked out.

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Failure to prevent fraud: catch me if you can

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Ward Hadaway—19 promotions

Brabners—Ruth Hargreaves

Slater Heelis—Liam Hall, Jordan Bear & Joe Madigan