The UK Failure to prevent fraud offence comes into force from 1st September 2025. If our organisation meets 2 of the threshold requirements shown below, then you will need to have policy and procedures in place to evidence that you actively prevent fraud. The new FTPF regime applies to your organisation if it meets any 2 of the following:
The above applies, whether the organisation is public, private or not for profit and includes all subsidiaries. Organisations are referred to as a 'Relevant Organisation' (RO) and will need to have systems in place to support a fraud defence if a fraud occurs within the organisation.
The Economic Crime and Corporate Transparency Act 2023 (ECCTA) legislates accountability for fraud within any RO even where the Directors/Managers had no knowledge of the fraud. A fraud can be committed by an Associated Person (AP) such as an employee or contractor or, a collaboration of both. If a fraud takes place within a RO with the intention to benefit the only defence available is evidence of an active and ongoing fraud prevention regime.
Unlike Anti- Bribery and Anti-Money Laundering, a static policy will not be sufficient. An organisation must evidence intermittent risk assessments, audits and effective fraud prevention policy. If you cannot evidence ongoing fraud prevention review a court may find that your policy and procedures as ‘not fit for purpose’ leaving the organisation exposed to prosecution.
Our dedicated Fraud Prevention service deploys all the necessary steps to be sure your organisation has effective fraud prevention, that all relevant staff are trained, and a regime of review and audits are in place to support ongoing compliance
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