United Kingdom: The impact of the failure to prevent fraud offence on employers and the importance of a culture of compliance

23 Jun 2025    1 minute read
EC Featured Content

In brief

In an article for the Compliance & Risk Journal, Henry Garfield, John Bracken and Polly Mainds explore the cultural business changes needed to ensure compliance before the new offence of failure to prevent fraud comes into force on 1 September 2025.

Contents

Key takeaways

  • The Economic Crime and Corporate Transparency Act 2023 (ECCTA) is intended to help prevent abuse of UK corporate structures and forms part of the UK government's wider agenda to tackle economic crime.
  • A new failure to prevent fraud offence was introduced by the ECCTA and comes into force on 1 September 2025.  It facilitates the prosecution of large organisations for fraud by introducing corporate criminal liability for failing to prevent fraud by associated persons, including employees.
  • The ECCTA is the latest in a series of "failure" or "duty" to prevent offences, including those relating to bribery, facilitation of tax evasion, and sexual harassment.  These represent a clear shift in the importance of the role of business in implementing systems and controls that prevent wrongdoing.
  • The article gives examples of what organisations should do to prepare, and the importance of creating a culture in which fraud is never acceptable.
  • Click here to read the full article. This article first appeared in volume 14, issue 3 of Compliance & Risk Journal.

For more information on what this issue means for you and your business, please get in touch with the authors or your usual Baker McKenzie contact.

Contact Information
Henry Garfield
Partner
London
Read my Bio
henry.garfield@bakermckenzie.com
John Bracken
Associate
London
john.bracken@bakermckenzie.com
Polly Mainds
Associate
London
polly.mainds@bakermckenzie.com

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