The Home Office published their long-awaited guidance on the new failure to prevent fraud offence on 6 November 2024. The FTPF Offence, introduced by the Economic Crime and Corporate Transparency Act 2023, allows for large organizations to be held criminally liable where their employees, agents, subsidiaries, or other “associated persons” commit a base fraud offence intending to benefit the organization or its clients, and it is determined the organization failed to implement “reasonable fraud prevention procedures”. All large, incorporated bodies and partnerships are in scope of the FTPF Offence, and it applies both to UK-based organizations and organizations based abroad with a UK nexus. The Government also announced that the FTPF Offence will come into force on 1 September 2025.

Having not secured a deferred prosecution agreement in respect of U.K. Bribery Act offences since 2021 and having been rocked by a series of shortcomings regarding its investigation and prosecution of cases, the SFO has arguably been at its lowest ebb.

The Economic Crime and Corporate Transparency Act 2023 received Royal Assent on 26 October 2023. The Act is a landmark development in the UK Government’s long-standing efforts to enhance the UK’s economic crime enforcement framework, and the Act introduces a number of important measures designed to improve corporate transparency and tackle economic crime in the UK
and abroad.

On 11 April 2023, the UK government announced in a Factsheet the introduction of a new criminal offence of failure to prevent fraud for organisations profiting from fraud committed by their employees or agents acting on their behalf. Violations can result in unlimited fines for organisations involved. Introduced as an amendment to the Economic Crime and Corporate Transparency Bill 2022, the new offence will come into force on the day the Act is passed.

On 26 January 2023 HM Revenue & Customs announced that, as of 1 January 2023, it has nine live Corporate Criminal Offenses investigations for the failure to prevent the facilitation of tax evasion, with a further 26 investigation opportunities under review. These live and potential investigations cover 11 different business sectors including software providers, labor provision, transport, accountancy and legal services.

In June 2022, Glencore, one of the world’s largest commodity traders, pleaded guilty to paying bribes to officials in three West African countries and for failing to prevent agents and employees from doing so in two other African countries. On 3 November 2022, Glencore was sentenced and ordered to pay a record amount of GBP 281 million (consisting of a GBP 182.9 million fine, a GBP 93.5 million confiscation order and GBP 4.5 million in respect of the Serious Fraud Office’s costs).

In September 2022, the government sought to reinforce its commitment to curbing money laundering in the UK by introducing the Economic Crime and Corporate Transparency Bill. The draft bill represents a substantial overhaul to Companies House, which, if implemented, will affect how all companies, partnerships and limited partnerships are established. It is the second piece of legislation targeting economic crime following the Economic Crime (Transparency and Enforcement) Act 2022, which was introduced in March 2022.

On 22 September 2022, the government sought to reinforce its commitment to curbing money laundering in the UK by introducing the Economic Crime and Corporate Transparency Bill. The draft bill represents a substantial overhaul to Companies House, which, if implemented, will affect how all companies, partnerships and limited partnerships are established. It is the second piece of legislation targeting economic crime following the Economic Crime (Transparency and Enforcement Act) 2022, which was introduced in March 2022.

The Annual Compliance Conference begins next week and attracts over 6,000 in-house senior legal and compliance professionals from across the world. This leading compliance conference will be held across five weeks from 6 September – 6 October 2022. We will be virtually delivering our cutting-edge insights and guidance on key global compliance, investigations and ethics issues. Our global experts will provide practical insights and analysis on significant developments:
• anti-bribery
• corruption and economic crime
• customs and FTAs
• ESG, supply chain and product compliance
• antitrust and competition
• export controls, sanctions and foreign investment

Click here to view the full agenda and register your interest in joining us virtually at this must attend global compliance conference for senior in-house legal and compliance professionals.

Annual Compliance Conference

Our popular Annual Compliance Conference, which attracts over 6,000 in-house senior legal and compliance professionals from across the world, will be held across five weeks from 6 September – 6 October 2022. We will be virtually delivering our cutting-edge insights and guidance on key global compliance, investigations and ethics issues. Our global experts will provide practical insights and analysis on significant developments across:
– anti-bribery
– corruption and economic crime
– customs and FTAs
– ESG, supply chain and product compliance
– antitrust and competition
– export controls, sanctions and foreign investment

Click https://www.bakermckenzie.com/en/insight/events/2022/10/annual-compliance-conference to register your interest in joining us virtually at this must attend global compliance conference for senior in-house legal and compliance professionals.