Failure to prevent fraud: catch me if you can

03 March 2023 / Anita Clifford

Issue: 8015 / Categories: Features , Fraud , Criminal , Regulatory , Financial services litigation

Failure to prevent fraud… and more? Anita Clifford reports on the broadening scope of the proposed ‘failure to prevent’ offences & the likelihood of their success

The government has announced that new failure to prevent offences provisions will be proposed as an amendment to the Economic Crime and Transparency Bill currently before Parliament.
The provisions are likely to attract cross-party support and would make it an offence for an organisation to fail to prevent fraud and possibly also money laundering.
Organisations will be compelled to review their internal controls.
If the offence includes the failure to prevent money laundering just how the legislation will interact with anti-money laundering regulation will need to be worked out.

A radical expansion of the failure to prevent model is in sight following the government’s backing of a new corporate offence of failure to prevent (FTP) fraud and possibly other conduct such as money laundering. On 25 January 2023, security minister Tom Tugendhat MP announced that the

If you are not a subscriber, subscribe now to read this content

If you are already a subscriber sign in

...or Register for two weeks' free access to subscriber content

Failure to prevent fraud: catch me if you can

Failure to prevent fraud… and more? Anita Clifford reports on the broadening scope of the proposed ‘failure to prevent’ offences & the likelihood of their success

The government has announced that new failure to prevent offences provisions will be proposed as an amendment to the Economic Crime and Transparency Bill currently before Parliament.
The provisions are likely to attract cross-party support and would make it an offence for an organisation to fail to prevent fraud and possibly also money laundering.
Organisations will be compelled to review their internal controls.
If the offence includes the failure to prevent money laundering just how the legislation will interact with anti-money laundering regulation will need to be worked out.

If you are not a subscriber, subscribe now to read this content

If you are already a subscriber sign in

...or Register for two weeks' free access to subscriber content

SourceURL:

Links:

E-newsletter Sign-Up

MOVERS & SHAKERS

Read All

Gilson Gray—Linda Pope

Partner joins family law team inLondon

Jackson Lees Group—five promotions

Private client division announces five new partners

Taylor Wessing—Max Millington

Banking and finance team welcomes partner in London

NEWS

Read All

NLJ this week: Motor commissions & fiduciary duties

The landmark Supreme Court’s decision in Johnson v FirstRand Bank Ltd—along with Rukhadze v Recovery Partners—redefine fiduciary duties in commercial fraud. Writing in NLJ this week, Mary Young of Kingsley Napley analyses the implications of the rulings

NLJ this week: The power of Interpol red notices

Barristers Ben Keith of 5 St Andrew’s Hill and Rhys Davies of Temple Garden Chambers use the arrest of Simon Leviev—the so-called Tinder Swindler—to explore the realities of Interpol red notices, in this week's NLJ

NLJ this week: Approach with caution post-Mazur

Mazur v Charles Russell Speechlys [2025] has upended assumptions about who may conduct litigation, warn Kevin Latham and Fraser Barnstaple of Kings Chambers in this week's NLJ. But is it as catastrophic as first feared?

Philip Sales is selected as next Deputy President

Lord Sales has been appointed to become the Deputy President of the Supreme Court after Lord Hodge retires at the end of the year

Tax shock ahead for partners?

Limited liability partnerships (LLPs) are reportedly in the firing line in Chancellor Rachel Reeves upcoming Autumn budget

Error message

Failure to prevent fraud: catch me if you can

MOVERS & SHAKERS

Gilson Gray—Linda Pope

Jackson Lees Group—five promotions

Taylor Wessing—Max Millington