Charlotte Hill writes for i-Law Compliance Monitor on the impact of 'failure to prevent fraud' legislation on compliance officers
With the 'failure to prevent fraud' offence now in force, an additional burden rests on compliance functions to ensure that firms have reasonable procedures in place to counter relevant risks.
The "failure to prevent fraud" is a new UK corporate offence that came into force on 1 Septembber 2025, under the Economic Crime and Corporate Transparency Act (ECCTA) 2023.
Under the new rules, large organisations can be found criminally liable if an 'associated person' - for example an employee or agent - commits a fraud offence (to benefit the organisation), without the organisation having appropriate fraud prevention systems in place.
Charlotte Hill, Partner in our Financial Services Regulation & Funds team, outlines the scope of the new offence, lessons from parallel legislation and practical steps to implement in an article for iLaw Compliance Monitor.
In the piece, she gives advice to compliance professionals on how they can navigate risks presented by the new legislation, and ensure that they meet their obligations.
Read the full article in iLaw Compliance monitor here (subscription required).
