The failure to prevent fraud offence marks a dramatic shift in UK corporate regulation, placing direct responsibility on large organisations to stop fraud from happening within their ranks.

Introduced as part of the Economic Crime and Corporate Transparency Act 2023 (ECCTA), the offence will come into effect from 1 September 2025. Yet despite its significance, awareness remains worryingly low.

This new offence is designed to hold companies accountable when someone associated with them, such as an employee, agent, or subsidiary commits fraud with the intention of benefiting the business.