Economic Crime And Corporate Transparency Act, 2023: A Comprehensive Analysis

The enactment of the Economic Crime and Corporate Transparency Act, 2023 ('ECCTA') in the United Kingdom ('UK') marks a significant milestone in the jurisprudence of economic crimes. This article discusses the reforms introduced by the ECCTA and their impact on determining the liability of corporate entities and their controlling minds in cases of economic crimes. It also sheds light on the criminal liability of corporates in India while noting the valuable lessons that need to be learnt from the UK reforms, especially in today's complex corporate landscape.

I. Introduction

Prosecuting corporates for economic crimes has never been an easy task. The 'directing mind and will' test, which seeks to identify the ultimate decision-maker to hold liable for an alleged offence, often falls short in tracing accountability in complex corporate structures with multi-level management and decentralised decision-making mechanisms.