ARTICLE
13 November 2024

Failure To Prevent Fraud: UK Government Today Publishes Important Guidance On The New Offence

NR
Norton Rose Fulbright Hong Kong

Contributor

Norton Rose Fulbright provides a full scope of legal services to the world’s preeminent corporations and financial institutions. The global law firm has more than 3,000 lawyers advising clients across more than 50 locations worldwide, including London, Houston, New York, Toronto, Mexico City, Hong Kong, Sydney and Johannesburg, covering Europe, the United States, Canada, Latin America, Asia, Australia, Africa and the Middle East. With its global business principles of quality, unity and integrity, Norton Rose Fulbright is recognized for its client service in key industries, including financial institutions; energy, infrastructure and resources; technology; transport; life sciences and healthcare; and consumer markets.

The UK government has today published its long-awaited guidance to organisations on the new offence of failure to prevent fraud (here) and confirmed the offence will be in force from 1 September 2025.
United Kingdom Criminal Law

The UK government has today published its long-awaited guidance to organisations on the new offence of failure to prevent fraud (here) and confirmed the offence will be in force from 1 September 2025.

Under the new offence an organisation (whether or not it is a UK organisation) may be criminally liable where an employee, agent, subsidiary, or other "associated person", commits a fraud intending to benefit the organisation, where that fraud has a UK nexus, and the organisation did not have reasonable fraud prevention procedures in place.

This new offence is a hugely significant development and is intended to have a similar impact to the UK Bribery Act 2010, both in terms of driving changes in compliance and culture and in leading to deferred prosecution agreements and prosecutions.

The guidance covers both the elements of the offence itself and importantly advice on what constitutes reasonable fraud prevention procedures.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More