Under the Economic Crime and Corporate Transparency Act 2023, a new corporate offence came into force on 1 September 2025: failure to prevent fraud.
Who it applies to. Large organisations that meet two of three thresholds: more than 250 employees, more than £36 million turnover, or more than £18 million in assets.
The only defence. Showing that the organisation had reasonable fraud-prevention procedures in place. Government guidance sets out six principles, from top-level commitment to risk assessment and monitoring.
Why it matters
Previously, prosecuting a company for fraud required proving that its “directing mind” was involved — a high bar for large firms. The new offence removes that hurdle. Fines are unlimited.
Source: GOV.UK guidance
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