New Guidance on 'Failure to Prevent Fraud' Offence

On 6 November 2024, the UK government published the eagerly awaited guidance on the ‘failure to prevent fraud’ offence (Guidance) which was introduced as part of the Economic Crime and Corporate Transparency Act 2023 (ECCTA).

According to the UK government, the Guidance is written to set out “procedures that relevant bodies can put in place to prevent persons associated with them from committing fraud offences.”

The Guidance provides an overview of the offence and the general principles for organisations to consider when developing or enhancing procedures to prevent fraud.

Following the publication of the Guidance, the countdown has now started with the ‘Failure to Prevent Fraud’ offence coming into effect on 1 September 2025.

We summarise the contents of the Guidance in this document and explain how it fits together with the new offence.