How businesses should react to new UK guidance on failure to prevent fraud

In Short

• Large businesses will face criminal liability if an associated person commits fraud to benefit the business and no reasonable prevention procedures are in place.
• The UK Government's Guidance sets out six key compliance principles, including risk assessment, top-level commitment and training.
• The offence takes effect on 1 September 2025, so businesses must act now to prepare.

Tips for Businesses

Start with a gap analysis to assess your current anti-fraud controls. Focus on high-risk roles, refresh training, and review contracts with agents and suppliers. A well-implemented fraud prevention plan will support compliance and help protect your reputation and bottom line.