Commentators say firms must embed an anti-fraud culture and reinforce whistleblowing protections to avert legal risks before legislation comes into force in September
From 1 September 2025, large organisations will be required to implement ‘reasonable prevention procedures’ for fraud or face unlimited fines, leading to calls for them to start preparing now.
The ‘failure to prevent fraud’ offence will come into force under section 199 of the Economic Crime and Corporate Transparency Act 2023. While primarily targeting large corporations, the legislation will also affect smaller businesses and third-party associates, including employees and anyone providing services for or acting on behalf of the organisation.
With the new law due this year, HR and employment law commentators have stressed the need for firms to get ahead and bolster whistleblowing protections. Jane Hallas, a solicitor and head of team at WorkNest, urged organisations to adopt a “top down” strategy and ensure whistleblowing procedures were “fit for purpose”.
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