Failure to prevent fraud is now a corporate offence in the UK. Is your organisation defensible?
From September 2025, the new corporate offence of failure to prevent fraud is in force under the Economic Crime and Corporate Transparency Act 2023.
UK organisations can now face prosecution for fraud committed by employees, agents or subsidiaries – unless reasonable fraud prevention procedures were in place and can be demonstrated.
What changed
Corporate liability can arise even without senior management knowledge
The offence applies to employees, agents, subsidiaries and other associated persons
The only defence is demonstrating reasonable fraud prevention procedures
What is 'reasonable' is ultimately determined by the courts
This is not about preventing all fraud. This is about proving you did enough.
What does ‘reasonable’ look like?
Courts will consider whether an organisation’s fraud prevention procedures are proportionate and effective, with reference to factors such as:
Leadership commitment
Risk assessments
Proportionate, risk-based controls
Due diligence on associated persons
Communication and training
Monitoring and review
The question is not whether the procedures exist, but whether they are credible, implemented and can be evidenced.
Build a defensible fraud prevention framework
With Speeki, organisations can build and evidence a fraud control framework aligned with regulatory expectations.
Demonstrate that your fraud prevention framework meets recognised international standards and supports your ability to evidence 'reasonable procedures'.
Assess whether agents, suppliers and other associated persons have effective fraud controls in place and whether they expose your organisation to liability under the new offence.
Ensure your organisation can detect, investigate and respond to fraud in a way that supports regulatory expectations and legal scrutiny.
If you had to defend your fraud controls today, would they hold?
About Speeki
Speeki is an assurance company helping organisations turn their compliance, sustainability and ESG initiatives into a competitive advantage. Providing independent validation across six areas – ISO certifications, sustainability reporting, product sustainability representations, circular economy, supplier audits and pre-acquisition ESG audits – Speeki strengthens consistency, credibility and confidence.
All of this is delivered through Engage®, Speeki’s AI-powered platform.
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