🚨 Introduced in 2023, the “failure to prevent fraud” offence is part of the Economic Crime and Corporate Transparency Act (ECCT). 🚨
It is intended to hold large organisations to account if they profit from fraud.
📓 Under the offence large organisations may be held criminally liable when an employee, agent, subsidiary, or other “associated person” commits fraud intending to benefit the organisation.
Examples may include dishonest sales practices, concealing important information from consumers or investors, or manipulative behaviour in financial markets.
⚖️ In the event of prosecution, an organisation would need to demonstrate to the court that it had reasonable fraud prevention measures in place at the time the fraud was committed.
🤝 The UK government has published guidelines to help organisations comply.
https://lnkd.in/ezviRxt5
But is your organisation ready?
Will it be ready by 1st September 2025?
How do you know for sure?
A peer of mine Rupert Evill has launched an online survey.
Once completed, Ethics Insight www.ethicsinsight.co will compile the responses (50 questions in total) and send you a report that includes a score. This is a valuable tool to help any business assess and understand its vulnerability to fraud and ultimately implement remedial actions.
I highly recommend it.