Robert Brooker, head of fraud and forensics at PKF GM, explains how directors can prepare for the Economic Crime and Corporate Transparency Act’s failure to prevent fraud offence
Business fraud is a major issue for UK businesses. In a survey of 1,000 senior managers by law firm, Foot Anstey, it was revealed that 45% of businesses have had to act on fraud caused by an employee or contractor, and of those, nearly two in five (39%) have had to act more than once.
These somewhat alarming statistics demonstrate a lack of awareness of what constitutes fraud and how to prevent, deter and detect it. Less than a third of senior managers are very confident they understand their legal obligations. Furthermore, 53% of businesses don’t have any anti-fraud policies in place at all.
However, this will need to change. The Economic Crime and Corporate Transparency (EECT) Act received Royal Assent at the end of October and is expected to come into force in 2024. The Act is lengthy and incorporates many aspects to minimise organised white-collar crimes, including the ‘failure to prevent fraud’ (FTPF) offence.
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