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Economic Crime and Corporate Transparency Act 2023 - Guidance for the corporate offence of Failure to Prevent Fraud

06 November 2024

Proposing MP
Dan Jarvis Lab
Barnsley North
Type
Written Ministerial Statement
Department
Home Office
View on Parliament.uk -->

At a Glance

Issue Summary

The statement addresses the introduction of a new corporate offence under the Economic Crime and Corporate Transparency Act 2023 aimed at preventing organisations from profiting from fraud.

Action Requested

The Government has published guidance to explain the necessary fraud prevention procedures for organisations, which will commence nine months after publication to allow time for preparation. This guidance is similar in structure to existing bribery and tax evasion prevention guidance.

Key Facts

  • The new offence targets large organisations that profit from fraud.
  • Organisations can defend themselves if they had reasonable fraud prevention procedures or could not reasonably have any such procedures in place.
  • The guidance was developed with input from prosecutors, regulators, industry bodies, and the Devolved Governments.
  • The guidance is published on GOV.UK today.
  • The offence will commence nine months after publication of this guidance.
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