Large companies and organisations risk hefty fines if their compliance procedures are not up to scratch, as of this week
The offence of failure to prevent fraud under the Economic Crime and Corporate Transparency Act 2023 comes into force on 1 September. It occurs where ‘persons associated’ commit a fraud offence ‘with the intention of benefiting the organisation or a person to whom the organisation provides services’.
Joint guidance issued in August by the Serious Fraud Office and Crown Prosecution Service warned that corporate entities may be criminally liable ‘irrespective of whether they intended or were aware of’ the conduct.
