header-logo header-logo

03 March 2023 / Anita Clifford
Issue: 8015 / Categories: Features , Fraud , Criminal , Regulatory , Financial services litigation
printer mail-detail

Failure to prevent fraud: catch me if you can

113334
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

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Weightmans—Jason Slatcher

Weightmans—Jason Slatcher

Weightmans appoint new Chief Technology Officer

Mishcon de Reya—trainees

Mishcon de Reya—trainees

Mishcon de Reya announces trainee retention rate of 86%

Sackers—Charlotte Adams & Fraser Sutton

Sackers—Charlotte Adams & Fraser Sutton

Sackers welcomes two new Graduate Solicitor Apprentices

NEWS
LexisNexis will mark the 80th anniversary of Shawcross and Beaumont on Air Law with a live podcast exploring the evolution of aviation law from the Chicago Convention to the challenges facing modern aerospace, taking place on Tuesday 29 September
Harmony Christian Ministries is the latest charity to benefit from a £500 donation from AlphaBiolabs via the company’s Giving Back initiative
Indemnity costs remain exceptional, but parties cannot ignore a case that deteriorates around them. In Lawrence v Associated Newspapers, Mr Justice Nicklin ordered the claimants to pay indemnity costs after finding their conduct, viewed cumulatively, fell ‘well outside the norm’
Public law is in flux following reversals and robust appellate intervention, according to the latest public law update by the team at HSFK for NLJ
Neurotechnology is turning the human mind into an operational domain, exposing gaps in the laws of war
back-to-top-scroll