Commons Sense

House of Commons · Written Ministerial Statement

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

06 November 2024 · Home Office

Proposed by Dan Jarvis Lab Barnsley North

Business ComplianceCrime & Law Enforcement

Summarised by AI from the official record, so it can contain mistakes.

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At a glance

Key points

  • The Government has introduced a new corporate offence to prevent organisations from profiting from fraud under the Economic Crime and Corporate Transparency Act 2023.
  • Guidance has been published to help organisations implement necessary fraud prevention procedures.
  • The guidance will take effect nine months after publication to allow organisations time to prepare.

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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