UK’s Government Introduces Policy Paper on Failure in Fraud Prevention Offence

Failure to Fraud Prevention offense to the Economic Crime and Corporate Transparency Bill is approved by parliament.

Answering 11 crucial questions related to fraud prevention, this policy paper explains different aspects of the UK’s policies, discusses loopholes in the anti-fraud measures taken by companies, and other relevant concerns. It mainly focuses on the following points:

• The government is creating a new fraud prevention offense for organizations if their employees commit fraud.
• 41% of all crime in 2022 was fraudulent activities. It addresses the cultural change toward improved fraud prevention procedures
• It impacts businesses through effective fraud prevention procedures. Mainly targeting the SMEs (Small and Medium Enterprises). The offense will apply to large companies and unfair burdens on SMEs shall be avoided.
• Organizations to which the offense applies are large corporate bodies and partnerships. Two out of three criteria should be met to fall in the said category i.e. more than £36 million in turnover, £18 million in assets, and more than 250 employees.
• Organizations will able to avoid charges and prosecution if they have reasonable procedures against fraud.
• Organizations proven to be involved in fraudulent activity will be indicted to an unlimited fine.

Furthermore, the enforcement of the policy paper shall be done soon. It is already approved by the parliament. Further information is given on the following link Factsheet: failure to prevent fraud offense - GOV.UK