Large organisations could face enforcement action, and risk an unlimited fine, for failing to prevent fraud within their business under the new failure to prevent fraud offence.

The proposed legislation plans to encourage businesses to do more to deter offending, to help cut crime and protect consumers from fraudulent practices.

Part of the Economic Crime and Corporate Transparency Bill, the failure to prevent fraud offence will allow prosecutors to hold big companies to account if an employee commits fraud for the organisation’s benefit.

Businesses will be held accountable for failing to prevent false accounting, fraud or money laundering. It could also hold companies to account for dishonest practices in financial markets.