Offence of failure to prevent fraud

Following our briefing last year, the Government has announced that the offence will come into force on 1 September 2025 and has also published guidance for organisations.  

The offence applies to large organisations, which are defined in the legislation as having a turnover of more than £36million, a balance sheet total of more than £18million and more than 250 employees for the financial year preceding the year in which the fraud was committed. 

Whilst the offence currently only applies to large organisations, the guidance makes the point that the principles should be considered “good practice” and so could be helpful for smaller organisations.  

The guidance confirms that the offence applies to a range of bodies that meet the above criteria, including bodies formed by Royal Charter and statute, as well as companies formed under the Companies Act 2006.

For more detail, read our latest briefing.