Ben Boorer, writing for Enterprise Times, discusses the Economic Crime and Corporate Transparency Act (ECCTA), which comes into force on 1st September 2025. ECCTA will reshape the UK’s compliance landscape by, amongst other things, holding organisations accountable for fraud committed by employees, agents, and subsidiaries.

A key aspect of ECCTA is the “failure to prevent fraud” offence, which creates a corporate criminal offence of failing to prevent fraud. While the Home Office has provided high-level guidance, its lack of clarity raises concerns, particularly around what constitutes “reasonable procedures” that may provide a defence, as ECCTA makes it easier to hold organisations liable if they are deemed to have benefited from fraud.

While the Act presents challenges, it also offers an opportunity to strengthen corporate governance and build a more resilient organisation. By proactively managing fraud risk and fostering a culture of integrity, companies can navigate the new compliance landscape effectively.

With just 6 weeks remaining until ECCTA’s implementation, how is your organisation preparing?