May 22, 2023
The new ‘failing to prevent fraud’ law will focus on the organisational failure of a company to prevent wrongdoing committed by an individual associated with the company as an employee or agent performing services on the company’s behalf.
Writing for Counsel Magazine, Jonathan comments:
“The introduction of the new ‘failing to prevent’ offence will increase awareness in the corporate sector of the importance of preventing fraud in the fight against economic crime. By the enactment of the new offence, Parliament is making clear its expectation that the UK’s leading companies are required to act as good corporate citizens and accept legal responsibility for the way in which they organise their affairs where the prevention of fraud is concerned.”
The introduction of the new offence is seen as a significant measure in the UK’s fight against corporate crime, yet, the new offence will apply only to large companies where the following criteria are met: the company has more than 250 employees, more than £36 million turnover and more than £18 million in total assets. Jonathan continues:
“It is no longer an option for a large company to bury its head in the sand where fraud prevention is concerned. Instead, a company is required to police itself, by ensuring that its employees and other persons associated with the company act do not dishonestly seek an advantage for the company, and usually themselves too, by indulging in fraudulent conduct.”
Jonathan Fisher KC specialises in money laundering cases and is ranked by the independent legal directories in Band 1 for proceeds of crime, financial crime, and business crime cases. He has been described in the directories as “a fantastic silk who is an absolute must if you require responsive and intelligent, yet practical, advice”, “having great gravitas … where the stakes are high” and “calm, sure and deadly at spotting the weaknesses of the opponent’s case”. Jonathan holds a PhD from The LSE where he is a Visiting Professor in Practice and an Honorary LLD from UWE. He is Editor Emeritus of Lloyds Law Reports: Financial Crime. Read more here: [Jonathan Fisher KC]
Read Counsel piece here: [Counsel Magazine ]
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Jonathan Fisher KC
Call: 1980 | Silk: 2003