Source: FinTech Global

The UK Home Office has issued guidance on the new offence of failure to prevent fraud (FTPF), introduced by the Economic Crime and Corporate Transparency Act 2023, effective from September 1, 2025. The law imposes direct responsibility on large organisations (defined by employee count, turnover, and assets) to implement reasonable, risk-based procedures to prevent fraud. T

he offence covers a wide range of fraudulent activities and extends liability to associated persons, including suppliers and third parties. The guidance emphasizes the importance of due diligence, staff training, and ongoing monitoring. AI and machine learning are highlighted as key tools for fraud detection. The law aims to enhance corporate governance, compliance, and reputation protection, with firms required to update risk assessments and controls promptly to avoid prosecution and penalties.