Podcast series: Forthcoming changes to corporate criminal law
Welcome to our podcast series on the new crime of failure to prevent fraud and changes to companies' criminal liability for economic crime.
The Economic Crime and Corporate Transparency Act received Royal Assent on 26 October 2023 and contains two important changes for corporate criminal liability.
The first is the introduction of a new offence of "Failure to prevent fraud", which makes companies and partnerships liable for failing to stop employees or agents committing fraud for the benefit of the organisation or its customers.
The second change is to the way in which companies can be held liable for any economic crimes, so that the involvement of a "senior manager" will suffice to convict the company.
Over the coming weeks we will explore these changes in a series of videos and podcasts.
Episode 1: An introduction with the architect, Lord Garnier KC
We kick off the series with a video interview by Camilla de Silva (Head of Corporate Crime and Global Investigations) with Lord Garnier KC, who was one of the principal architects of the legislation and led much of the debate in the House of Lords. This wide-ranging discussion included, for example:
- The purpose of the legislation and why Lord Garnier believes it to be necessary
- The desired effect and expectations regarding enforcement
- Areas of disagreement between the Commons and Lords over the draft legislation
Episode 2: Reforms to corporate criminal liability
In our second instalment, we discuss the changes to the basis on which corporates will be liable for economic crimes, including:
- The current law on corporate criminal liability and the arguments for reform
- How the new law will work
- Whose actions within a company could now make a company criminally liable
Subsequent development
Under clause 14 of the Criminal Justice Bill currently before Parliament, it is proposed to repeal s.196 of the Economic Crime and Corporate Transparency Act 2023 (“ECCTA”), which received Royal Assent on 26 October 2023, but replace it with a very similar section. This proposed change would mean that the creation of criminal liability for an organisation through the actions of a “senior manager” would apply not just to “relevant offences” listed in the schedule to the ECCTA, but to all criminal offences.
As many offences likely to be committed by companies, such as health and safety breaches and corporate manslaughter, are already subject to separate regimes for finding liability, the impact of this change may be limited.
Episode 3: Failure to Prevent Fraud
In our third episode, we consider the new Failure to Prevent Fraud offence, including:
- The key elements of the offence
- What can be expected in terms of guidance
- How the risks of failing to prevent fraud might manifest
- How to prepare for the offence coming into force in 2024.
.jpg?crop=300,495&format=webply&auto=webp)
_11zon.jpg?crop=300,495&format=webply&auto=webp)
