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03 March 2023 / Anita Clifford
Issue: 8015 / Categories: Features , Fraud , Criminal , Regulatory , Financial services litigation
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Failure to prevent fraud: catch me if you can

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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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MOVERS & SHAKERS

Harneys—Maggie Kwok & George Weston

Harneys—Maggie Kwok & George Weston

Harneys senior leadership appointments

Freeths—Keith Browne & Jim Jordan

Freeths—Keith Browne & Jim Jordan

Freeths strengthens London Construction and Engineering practice with two strategic senior hires

Anthony Collins—Laura Moss

Anthony Collins—Laura Moss

Anthony Collins announces strategic hire to deepen skills base in the social business sector

NEWS
More than 100 teams from the legal and financial services sectors competed in five sports at the 51st Law Society RFC Festival of Sport earlier this month
Part-time status need only be an effective cause of less favourable treatment, rather than the sole cause, the Supreme Court has held in Augustine v Data Cars
Britain’s new acknowledgement that Israel’s occupation is unlawful, and accompanying settlement-goods ban and sanctions, is significant but overdue, argue Danny Friedman KC and Victor Kattan in NLJ this week
New planning fee rises, wider trade union access rights and a service-by-email trap feature in Stephen Gold’s latest Civil Way
Existing defamation law can respond to AI ‘hallucinations’, but allocating responsibility will prove harder where outputs reach users without human intervention
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