Large firms liable for fraud happening under their watch under new UK laws

Large firms liable for fraud happening under their watch under new UK laws

The new ‘failure to prevent fraud’ offence, which came into effect on Monday, holds large firms to account over their internal anti-fraud measures.

New ECCTA rule offers “major opportunity” to accountants

Accountants and bookkeepers have a “major opportunity” as the new Economic Crime and Corporate Transparency Act (ECCTA) rule on failure to prevent fraud comes into effect today (1 September).  The regulation holds large organisations criminally liable if an employee, agent, subsidiary, or associated person commits fraud benefitting the organisation.  Examples of fraud include dishonest sales practices, concealing crucial information from consume…

Failure to Prevent Fraud (FTP) offence comes into force today but many Scottish businesses underprepared - Scottish Business News

The UK’s new Failure to Prevent Fraud (FTP) offence comes into force today (1 September), but many Scottish businesses remain underprepared to comply with their legal obligations, according to global law firm Dentons. Discussions with industry and informal research conducted by Dentons from February through to June 2025 showed companies, including those in Scotland, have been slow to take the necessary steps to get ready for FTP compliance. As o…

Many Scottish firms 'unprepared' for new fraud prevention obligations

Katy MacAskill THE UK’s new Failure to Prevent Fraud offence comes into force today, but many Scottish businesses remain ‘underprepared’ to comply with their legal obligations, according to Dentons. The law firm said discussions with industry and informal research conducted from February through to June 2025 showed companies, including those in Scotland, have been slow to take the necessary steps to get ready. Failure to Prevent Fraud was introd…

NEWS: UK ‘failure to prevent fraud’ offence comes into force today, September 1  - AML Intelligence

By PAUL O’DONOGHUE, Senior Correspondent THE UK’s ‘failure to prevent fraud’ offence has come into force as of today, 1 September 2025, with companies warned they must abide by the rules. The measure will hold companies to account “if they profit from fraud”, according to the UK government. “large organisations can be held criminally liable where an employee, agent, subsidiary, or other ‘associated person’ commits a fraud intending to benefit th…

93% of SMEs hit by vendor fraud last year - will the new fraud law offer relief? - IFA Magazine

According to industry leaders, UK SMEs are set to benefit from improved fraud protection – with a new anti-fraud law coming into effect next week, September 1. UK Finance has warned that SMEs are particularly vulnerable to targeted scams, and research shows that 93% of companies were targeted by vendor fraud in the last year.1  This type of fraud can include duplicate invoices or overbilling from bigger vendors supplying goods or services in lar…