New offence of ‘failure to prevent fraud’ takes effect
Tuesday 2nd September 2025
On 1 September 2025, the new corporate criminal offence of ‘failure to prevent fraud’ comes into effect. The offence is made under the Economic Crime and Corporate Transparency Act (ECCT) 2023.
The offence will hold large organisations to account if they profit from fraud.
Large organisations are those that meet two of the following criteria:
- More than 250 employees
- More than £36 million turnover
- More than £18 million in total assets.
Large organisations should consider fraud prevention procedures and risk assess the organisation’s exposure to fraud.