GOV UK,‘Failure to prevent fraud’ offence regulatory alert

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‘Failure to prevent fraud’ offence: regulatory alert

4 February 2025

The Serious Fraud Office (SFO) and the Financial Conduct Authority (FCA) have issued a joint alert to businesses about the new ‘failure to prevent fraud’ offence that comes into force on 30 September 2025.

The offence, which is part of the Economic Crime (Transparency and Enforcement) Act, makes it a criminal offence for businesses to fail to prevent fraud by individuals acting on their behalf.

The SFO and FCA have said that they will take a “robust approach” to enforcing the new offence and that they will not hesitate to prosecute businesses that fail to take adequate steps to prevent fraud.

The alert sets out a number of steps that businesses can take to reduce the risk of falling foul of the new offence, including:

  • Conducting a fraud risk assessment
  • Implementing appropriate fraud controls
  • Providing training to staff on fraud awareness
  • Having a whistleblowing policy in place
  • Monitoring for and investigating fraud

The SFO and FCA have also said that they will be working with other law enforcement agencies to share intelligence and to coordinate investigations into fraud.

The new offence is a significant development in the fight against fraud. It sends a clear message to businesses that they must take steps to prevent fraud or face the consequences.

Businesses that are concerned about the new offence should seek legal advice to ensure that they are taking all necessary steps to comply with the law.

Further information

‘Failure to prevent fraud’ offence regulatory alert

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