Jurisdiction(s):
United Kingdom

Failure to Prevent Fraud under ECCTA 2023: UK guidance for law firms and large organisations on reasonable procedures, risk assessment, due diligence, training, monitoring and response

Published by a LexisNexis Practice Compliance expert

Practice notes

The Economic Crime and Corporate Transparency Act 2023 (ECCTA 2023) created a corporate offence of failing to prevent fraud, effective from 1 September 2025. This Practice Note is directed at commercial organisations, including law firms. It outlines the key features of the failure to prevent fraud offence brought in by ECCTA 2023. It explains the government’s expectations for procedures organisations should implement to deter fraud and the ensuing compliance implications. Not putting such measures in place may leave the organisation exposed to criminal offences. Organisations should also reflect on how to avoid becoming victims of fraud. Although the failure to prevent fraud offence addresses a distinct strand of fraud prevention, the risk management actions and preventative controls adopted by commercial organisations are likely to be much the same. Accordingly, this Practice Note addresses both strands of fraud risk management.

What is fraud?

Fraud involves intentionally using deceit or dishonesty to deprive, disadvantage or cause another person or party to suffer loss (typically financial). Specific offences are identified in Schedule 13 to ECCTA 2023 (see section: Relevant (base) fraud offences), but in general fraud manifests in many ways and there are numerous methods by which fraud can be carried out in...

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Web page updated on 21/05/2026

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