Preventing fraud and fraudulent behaviour

With emerging legislation looking set to increase the requirements on organisations to strengthen their fraud prevention procedures, businesses will need evidence that their processes are sufficiently robust.

The Economic Crime and Corporate Transparency Act, passed by the UK Government, introduces a new offence of failing to prevent fraud. This creates a requirement on those organisations covered by the law to put in place 'reasonable procedures to prevent fraud'.

GoodCorporation works with organisations to evaluate the effectiveness of their practices and procedures to prevent the wide range of fraudulent practices covered by legislation.

 

What we do

GoodCorporation works with organisations to help them design, build and embed the practices and procedures needed to comply with fraud prevention legislation. We use our Framework on Preventing Fraud to help organisations evaluate their operations to identify where fraudulent practices may occur and and help build appropriate controls and mitigating procedures.

The GoodCorporation Framework on Preventing Fraud

The GoodCorporation Framework on Preventing Fraud is a set of responsible business principles which can be used as a tool to improve the management practices needed to prevent fraud and fraudulent behaviour.

Designed to help organisations respond to the UK's Economic Crime and Corporate Transparency (ECCT) Act, the framework covers all forms of fraudulent practice listed in the act, including mis-selling, mis-representation, false claims, over-charging and dishonest sales practices.

All relevant business functions are covered, including sales and marketing, procurement, finance, government and regulatory affairs and human resources.

GoodCorporation uses this framework to help organisations evaluate their operations, identify where any risks of fraudulent practice might occur and help ensure that suitable controls and mitigation measures are in place. The framework can be used to conduct high-level reviews of policies and procedures, as well as site level assessments testing the effectiveness of any existing procedures already in place.

Companies working with GoodCorporation can use these assessments for board reports, internal assurances, external reporting and as evidence of reasonable procedures.

The framework follows GoodCorporation's established methodology using our independent assessment process for evaluating the practices and procedures under review.

Click to download our framework

Preparing for emerging economic crime legislation: what businesses need to do now

The Economic Crime and Corporate Transparency Act has been given Royal Assent and is expected to come into force by the end of 2024. This will make organisations liable under the new offence of failing to prevent fraud if a person acting on its behalf commits any of a range of specified fraud offences.

Strongly supported by the Serious Fraud Office and the Law Commission, the new legislation, and in particular the new failure to prevent fraud offence, is aimed at improving fraud prevention procedures and strengthening corporate culture to reduce the risk of fraudulent behaviours.

Guidance on the failure to prevent offence will be published, but is likely to be follow the adequate procedures logic of the UK Bribery Act. Our fraud prevention blog covers the steps organisations should be taking now to prepare for the forthcoming law, including reviewing the policies and procedures needed to prevent fraud. It also looks at the likely areas to be included in any government guidance.

 GoodCorporation has a thorough understanding of how to assess adequate procedures.  Their years of experience provided us with a trustworthy, third party review of our internal systems.

Jane Earl

former Company Secretary, BBC Worldwide

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