Fundamental economic crime reforms introduced under the U.K. Economic Crime and Corporate Transparency Act (ECCTA) have significantly increased corporate criminal liability risks. As a result of one of these changes — the introduction of a new offence of Failure to Prevent Fraud — large organisations in all sectors and across the globe will need to assess the risks of employees, agents and subsidiaries committing any of a wide range of fraud offences for the benefit of the business or its customers.
The offence has been in force since 1 September 2025. Any business within scope that wishes to rely upon the statutory defence of having “reasonable procedures” in place to prevent fraud will need to:
- Identify where the risks of fraud for the benefit of the business could arise;
- Assess the extent to which existing policies, training and procedures may mitigate those risks; and
- Introduce improvements to close any gaps in those measures.
Since implementation, attention has quickly turned to how enforcement bodies and regulators will interpret “reasonable procedures” in practice. The government has committed to publishing further guidance in late 2025, but early indications from the Serious Fraud Office and other agencies suggest that boards will be expected to demonstrate not just paper-based policies, but evidence of risk assessments, documented decision-making and active oversight. There is also an increasing focus on how fraud prevention frameworks interact with other corporate accountability regimes – including senior manager responsibilities and ESG-related reporting obligations.
The Simmons & Simmons Toolkit tackles the increased corporate criminal risks created by both the Failure to Prevent Fraud offence and the change to corporate criminal liability introduced by ECCTA – helping organisations to benchmark their current controls, identify gaps, and prepare for the first wave of enforcement activity expected in 2026.
The Law: Economic Crime and Corporate Transparency Act 2023
Key Reform I: A new “Senior Manager” Attribution Test for corporates (inforce)
- Adds to the existing “directing mind and will” identification test to include a “senior manager” as defined in the Act, acting within the scope of their authority.
- The Offence applies to “senior manager” in all corporations: An individual who plays a significant role in decision-making about, or the managing or organising of, the whole or substantial part of the activities of the organisation.
Key Reform II: A new corporate offence of Failure to Prevent Fraud
- Introduces corporate criminal liability for fraud offences by an “associate”, if intended to benefit the organisation or its clients – unless reasonable fraud prevention procedures in place.
How the Toolkit addresses these new risks
Our ECCTA fraud prevention toolkit provides a range of resources to help organisations understand, assess and mitigate the risks created by the new offence and to develop reasonable anti-fraud procedures.
Resources to address Key Reform I: “Senior Manager” Attribution Test
- Board briefing: Template wording for briefing Board members, covering central legal and compliance risks, governance, and compliance review steps
- Scoping tool: Resource to identify and document who may be a “senior manager” within your global business so that the corporate risk has been identified and can be mitigated
- Training module: Internal training guidance for senior managers to help them understand economic crime risks and mitigate corporate risk
Resources to address Key Reform II: Failure to prevent fraud
- Board briefing: Template wording to brief Board members, covering central legal and compliance risks, project ownership, governance, and compliance review steps
- Fraud risk assessments guidance: Analysis and case studies identifying how the new offence will work in practice
- Risk assessment and risk register resources: Templates for risk assessments and risk register to enable you to identify, map, and rate the key financial crime risks in your business
- Compliance review guidance: A review of existing fraud prevention systems, controls and approach to required changes
- Global corporate fraud prevention policy: Guidance and standard wording to create your policy including ongoing reporting, monitoring and review
- Training module: Internal training guide for all relevant staff to be well versed in fraud prevention measures
Additional Bespoke Guidance Available:
- Tailored risk guidance for your organisation
- Comprehensive advisory support through every stage of the process: risk assessment, policy drafting, and compliance reviews
- Board and senior manager training, along with failure-to-prevent staff training. This features a customizable training slide deck and the option for pre-recorded or in-person sessions tailored to your business
Our Toolkit can be purchased as a complete package, or individually by components. Demo and pricing information is available upon request. Our team is here to help you navigate the complexities of ECCTA reforms and safeguarding your organisation effectively.
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