Overview

• The new offence under the Economic Crime and Corporate Transparency Act takes effect on 1 September, expanding corporate criminal liability for fraud.
• It captures large businesses — those with more than 250 employees, turnover over £36m, or assets above £18m.
• Companies can be prosecuted if an employee, agent, subsidiary or other associated person commits fraud intended to benefit the organisation.
• The Home Office issued guidance last November developed with the CPS, SFO, HM Treasury, HMRC, the Ministry of Justice, the Cabinet Office, the Attorney General’s Office and the FCA.
• SFO director Nick Ephgrave has warned firms to get their house in order, and lawyers expect early cases, urging immediate risk assessments and stronger anti-fraud controls given potentially unlimited penalties.