‘The net has drastically widened for corporate criminal liability’

David Claxton has written an opinion piece for FT Adviser where he examines the new corporate criminal offence of failure to prevent fraud which was introduced by the Economic Crime and Corporate Transparency Act 2023.

He comments in the article published today (13.11.24):

“Given the government’s clear direction of travel to make corporates and their subsidiaries account for criminal wrongdoing, it can no longer be assumed that as long as those in control are distanced from the dishonesty, companies are safe from the prosecutor’s grasp.

The net has now widened drastically and no corporate activity is beyond the reach of this possible offence. The dishonest conduct of senior managers and those with significant functional roles could attribute criminal liability to the corporate.”

Read full opinion piece here: [FT Adviser]

David Claxton specialises in Business Crime and advises and represents professionals, business people and businesses in relation to criminal and regulatory investigations, enforcement and prosecutions: [David Claxton Profile ]