U.K. prepares to prosecute firms under new Failure to Prevent Fraud rules
By 
Ruth Prickett2025-08-29T17:48:00
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. Ab
Related articles
-
ArticleDigital wallets should speed up compliance, but companies must focus on trust and security
The EU has one, the U.K. is getting one, many U.S. states are working with Google and Apple to provide one, and now industry sectors are developing their own digital wallet.
-
PremiumUK’s Failure to Prevent Fraud law may expose firms to unlimited fines and prosecution, says Moody’s compliance risk expert
Fraud now accounts for around 40% of all crime in the U.K., posing a major problem for banks and consumers. Ted Datta, head of industry practice for financial crime compliance at Moody’s, warns that the risk is growing fast.
-
PremiumDirectors should be more accountable for failure, while also taking more risks, says U.K. regulator
Director accountability is back in the spotlight in the U.K., even as the government pushes for regulatory simplification to cut red tape and drive growth. This raises questions about how boards can be encouraged to take risks to grow their businesses while also being held more accountable for governance failings. ...
More from Regulatory Enforcement
-
ArticleFormer startup CEO gets 7 years in prison for $175M fraud against JPMorgan Chase
Charlie Javice, a former CEO who duped JPMorgan Chase into purchasing her start up company for $175 million, has been ordered to forfeit more than $22 million by the Department of Justice (DOJ) and to spend 7 years in jail.
-
ArticleGeorgia Tech to pay $875,000 for allegations brought by compliance officers
Georgia Tech Research Corp. (GTRC) has agreed to pay $875,000 to settle allegations first raised by two compliance officers that its cybersecurity protocols violated acceptable standards for defense contractors, the Department of Justice (DOJ) said.
-
ArticleTractor Supply Company hit with $1.35M fine for alleged California privacy violations
Tractor Supply Company has agreed to get into compliance with California’s consumer privacy law and to pay a $1.35 million fine—the largest yet by California—to settle allegations it violated the privacy rights of customers and job applicants.