Failure to Prevent Fraud: the new UK corporate offence

The Failure to Prevent Fraud offence under the Economic Crime and Corporate Transparency Act 2023 makes large UK organisations criminally liable if an associated person commits fraud intending to benefit the organisation, unless the organisation has reasonable fraud-prevention procedures. The offence came into force on 1 September 2025 and applies to organisations meeting two of three thresholds: 250+ employees, £36m+ turnover, £18m+ total assets.