United Kingdom on Corporate Crime

The UK's new "failure to prevent fraud" offence, effective September 2025, holds large organisations liable for fraud by associated persons unless reasonable prevention measures are in place, with global implications.

On 26 October 2023, the UK Economic Crime and Corporate Transparency Act 2023 (the "Act") received royal assent and became law. The Act introduces a new strict liability corporate criminal offence of failure to prevent fraud which, it has just been announced, will come into effect on 1 September 2025.

A recent UK judgment in R (World Uyghur Congress) v National Crime Agency broadens the definition of "criminal property," complicating compliance for businesses. It challenges the adequacy of existing AML measures, intensifying due diligence and reporting burdens.