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

Bell Yard Kysen—Liz Giles

Bell Yard Kysen—Liz Giles

Bell Yard Kysen appoints senior legal PR and ex-government communications adviser, Liz Giles

Clarke Willmott—Lee Edwards

Clarke Willmott—Lee Edwards

Clarke Willmott boosts Southampton commercial property team with addition of partner Lee Edwards

Lime Solicitors—four promotions

Lime Solicitors—four promotions

Lime Solicitors announces four promotions

NEWS
The Attorney General, Ellie Reeves KC MP, and Solicitor General, Andy Slaughter KC MP, marked the 25th anniversary of Pro Bono Week by joining lawyers, charities, students and parliamentarians at events celebrating voluntary legal work
Possession claims are entering a new digital era, with procedural traps awaiting practitioners who assume familiar rules still govern every step
Witness evidence can be compromised by AI before a solicitor sees the draft, leaving safeguards focused on authorship incomplete
Should a conviction stand when a later ruling reveals that the law underpinning it was wrong? The answer exposes a clash between finality and justice
The Environment Agency can prosecute offences beyond environmental legislation where proceedings support its statutory functions, the Divisional Court has confirmed
back-to-top-scroll