Failure to Prevent Fraud Offence Now in Effect for Large Firms

The offence applies to large organisations that fail to prevent fraud committed by an employee or associate for the organisation’s benefit.

Key features include:

➡️Scope: Applies to “large organisations” as defined by meeting two of the following criteria: more than 250 employees, more than £36 million turnover, or more than £18 million in total assets;

➡️Strict Liability: Organisations can be prosecuted even if senior management was unaware of the fraud; and

➡️Defence: A statutory defence is available if the organisation can demonstrate it had “reasonable procedures” in place to prevent fraud.

✅Firms should review their controls designed to address the FtPF offence to ensure they align with regulatory expectations and mitigate enforcement action.

💡 Plenitude’s Fraud Prevention Practice conducts Independent Fraud Assessments, ensuring firms have the right strategy, rules, technology and processes to reduce losses and increase detection rates.  

Visit our website for more information: https://www.plenitudeconsulting.com/services/fraud-prevention-services