CPS issues update for incoming failure to prevent fraud offence

On 1 September 2025, the Economic Crime and Corporate Transparency Act 2023 (ECCTA) introduces a new offence of failure to prevent fraud. This offence may make large UK organisations criminally liable if an ‘associated person’ commits fraud for the organisation’s benefit and the organisation lacked reasonable fraud prevention procedures.

On 18 August 2025, the CPS updated its guidance to prosecutors to change the application of the ‘identification doctrine’ to introduce a broader definition of who could be considered responsible for a company’s actions.

To address the incoming requirements, large organisations should implement a bespoke failure to prevent fraud policy, undertake a campaign of staff training, risk assess and mitigate the potential for fraud in different areas of the business, and adopt robust reporting, monitoring and escalation procedures.