Corporate criminal liability
Are you ready for the Failure to Prevent Fraud offence?
From 1 September 2025, failing to prevent fraud could cost your business its reputation and more.
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Your guide through ECCTA
The Economic and Corporate Crime Transparency Act 2023, or ECCTA, heralded the most important developments in corporate criminal liability for decades. On 26 December 2023, ECCTA introduced important changes to the test for corporate criminal liability for all economic crime, significantly lowering the threshold for liability, and it introduced a new Failure to Prevent Fraud offence, for fraud committed after 1 September 2025.
The new test for corporate criminal liability applies to all companies irrespective of their size and makes it easier for your business to be held accountable for economic crime.
Whilst only large companies can be prosecuted for the Failure to Prevent Fraud Offence, in practice it will impact any company in a supply chain involving a large company.
The Act also introduces a renewed focus on enforcement by Companies House and stringent transparency obligations on companies.
How to prepare for ECCTA
Our objective is to ensure that companies minimise the risk of any economic crime being committed against you, or on your behalf. Fieldfisher will ensure that you are well placed to rely upon the statutory defences available for the offences of failure to prevent bribery, failure to prevent the facilitation of tax evasion, and failure to prevent fraud. We will ensure, in this regard, that your economic crime prevention procedures are in line with both UK Government guidance, and other relevant guidance and best practice.
How we can assist
Our Corporate Crime lawyers can undertake the following to mitigate your risk:
Review and evaluate your corporate compliance programmes.
Assess whether your policies and procedures are likely to be adequate under ECCTA and other relevant legislation.
Conduct training across all levels of your organisation.
Manage and undertake internal investigations into allegations of suspected wrongdoing, and represent you in the face of criminal prosecution.
Immediate steps to take
Take action now to avoid liability
Ensure board level oversight and keep Economic Crime on the agenda.
Identify those people who might be capable of making the company liable, both in your company and also among your agents, intermediaries and suppliers. Update your supplier terms and add anti-economic crime clauses.
Conduct a risk assessment: where are your vulnerabilities? Are more controls required? Are your current policies and procedures ‘reasonable’ under the act?
Ensure key staff and personnel have risk based training.
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ECCTA compliance series: Proportionate risk-based prevention measure
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Under the ECCTA, “doing enough” isn’t enough. Your fraud prevention procedures must fit your organisation’s unique risks, or risk falling short.
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ECCTA compliance series: Communication (including training)
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ECCTA compliance series: Risk Assessment
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ECCTA compliance series: Monitoring and Review
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ECCTA compliance series: Top Level Commitment
03/09/2025
Fraud prevention starts at the very top.
In our first video exploring the six reasonable fraud prevention procedures, Quinton Newcomb andNatalie Quinlivan explore "Top Level Commitment". The board and those in senior management roles carry ultimate responsibility for preventing and detecting fraud.
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Bribery and CorruptionCommercial FraudEnergy and Natural ResourcesFinancial Services
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Partner, Dispute ResolutionData and PrivacyData Protection and PrivacyData protection, privacy & cyber securityDigital Health /eHealth
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PartnerBanking LitigationBribery and CorruptionCommercial FraudFinancial Crime
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Director (Barrister)Bribery and CorruptionCommercial FraudCyberFinancial Services
