Navigating the UK’s new offence for failure to prevent fraud
Abstract
On 6th November, 2024, the Home Office published guidance on the new corporate failure to prevent fraud offence, which was introduced by the Economic Crime and Corporate Transparency Act 2023. The guidance confirms that the new offence will come into effect on 1st September, 2025 and states that it will ‘make it easier to hold organisations to account for fraud committed by employees or other associated persons … [and] will also encourage more organisations to implement or improve prevention procedures, driving a major shift in corporate culture to help prevent fraud’. Companies need to carefully consider the guidance to ensure that they understand the extensive scope of the offence and the appropriate measures that need to be taken to protect themselves against corporate criminal liability. This article is also included in The Business & Management Collection which can be accessed at https://hstalks.com/business/.
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Author's Biography
Ann Đoàn Ann Ðoàn heads the Financial Crime Consulting Team at Hogan Lovells International LLP. Ann is a solicitor and compliance professional with over 25 years’ experience in financial services, specialising in financial crime. Ann joined Hogan Lovells from HSBC’s global financial crime legal team, prior to which she spent over 23 years leading a number of legal and compliance departments across a range of UK and international financial services and banking groups. She has been an invited panel member and delegate at the 2009 Organisation for Security and Co-operation in Europe (OSCE)-Wide Public- Private Expert Workshop on Preventing the Abuse of Non-Profit Organisations for Terrorist Financing and at the 2015 Joint G20 Anti- Corruption Working Group (ACWG)/Financial Action Task Force (FATF) Experts Meeting on Corruption. She was the winner of the Thomson Reuters 2015 Compliance Award for Head of Anti-Money Laundering and Fraud Prevention of the Year.
Claire Lipworth is a Partner at Hogan Lovells International LLP, London. She focuses on financial crime compliance and investigations. Prior to joining Hogan Lovells as a chief criminal counsel, she headed up the criminal prosecution function at the UK financial services regulator, the Financial Conduct Authority. Before that, she was a partner at a leading UK law firm in London focusing on white-collar crime.
