7 - fraud + economic crime

what is ECCTA 2023

the Economic Crime + Corporate Transparency Act 2023

it defines ‘failure to prevent fraud’ as a crime

what does this mean

an organisation that benefits from fraud cannot say they were unaware of the fraud happening as a defence

who does this offence apply to

all large incorporated bodies/subsidiaries/partnerships

large not-for-profit organisations

incorporated public bodies

large organisations

what defines a large organisation

at least 2 of:

• more than £36m turnover

• more than £18m balance sheet

• more than 250 employees

what is base fraud

the original fraud committed by a person associated with an organisation

what is NOT included in the definition of fraud

money laundering - its separate

who can commit a base fraud for it to be associated with a firm

• employee

• agent

• subsidiary of the relevant body

• someone who provides services on behalf of the relevant body