The U.K. government is preparing to begin prosecutions under the new criminal offence of Failure to Prevent Fraud (FTPF), which comes into force on Sept 1. The Crown Prosecution Service (CPS) and Serious Fraud Office (SFO) signaled their intent to take action against companies that fail to comply when they published joint updated guidance for prosecutors dealing with corporate prosecutions on Aug 18.
The FTPF offense is being introduced under the U.K.’s Economic Crime and Corporate Transparency Act (ECCTA). It makes large organizations with two out of three of the criteria (over 250 employees, £36 million turnover or £18 million total assets), legally responsible for fraud committed by their employees, agents, subsidiaries, or other associated persons. About 40% of all crime in the U.K. is related to fraud — U.K. banks lost £1.17 billion to fraud in 2024, while taxpayers lost between £55 billion and £81 billion to fraud and error.
