Preventing fraud and fraudulent behaviour: A guide to the ECCTA
Papers and reports | read time: 1 min
Published: 13 April 2026
The failure to prevent fraud offence, introduced by the Economic Crime and Corporate Transparency Act and in force since September 2025, represents one of the most significant expansions of corporate criminal liability in decades. Large organisations can now be held liable where fraud is committed for their benefit by employees or other associated persons, unless they can demonstrate that reasonable prevention procedures are in place.
This paper explains the practical implications of the new offence for general counsel and compliance teams. It examines the widened scope of fraud risk, including outward fraud, non-financial misconduct such as misleading ESG claims, and exposure arising from third parties and subsidiaries, and sets out how organisations should assess and strengthen their controls in response.
Drawing on regulatory guidance and GoodCorporation’s experience assessing compliance programmes internationally, the paper sets out a clear framework for developing proportionate, risk-based procedures capable of withstanding scrutiny from enforcement authorities.
For organisations in scope, regulators now expect evidence that effective, risk-based fraud prevention procedures are in place. This paper provides a practical roadmap for ensuring organisations are compliant with the new regime.
work with us