course: Understanding the uk offence of
failure to prevent fraud
Audience: Legal Professionals, Compliance Officers, In-House Counsel, Partners/Directors
Duration: 3 Hours
Course Objectives
By the end of this course, delegates will:
- Understand the statutory basis and scope of the Failure to Prevent Fraud offence.
- Be able to identify corporate risks and responsibilities under the new legal regime.
- Gain practical knowledge of implementing “reasonable procedures” as a defence.
- Learn how to prepare for investigations and enforcement actions.
Session 1: Introduction and Legal Framework (60 minutes)
Welcome and Course Overview (5 minutes)
- Introduction
- Overview of learning outcomes
- Structure of the course
Context and Background (15 minutes)
- Evolution of corporate criminal liability in the UK
- The rationale for introducing a failure to prevent fraud offence
- Key policy drivers (e.g., economic crime reform, corporate governance)
Legal background (40 minutes)
- Overview of the Economic Crime and Corporate Transparency Act 2023
- Structure of the offence:
- Applicable to large organisations
- Fraud or fraud-related offences by associated persons
- Benefit to the organisation
- Comparison with other failure to prevent offences (e.g., bribery, tax evasion)
- Extraterritorial application and jurisdiction
Break: 10 Minutes
Session 2: Key Concepts and Application (50 minutes)
Definition and Scope of “Associated Persons” (15 minutes)
- Employees, agents, subsidiaries, contractors
- Determining association in practice
Underlying Fraud Offences (15 minutes)
- Common fraud offences under the Fraud Act 2006
- Market abuse and other relevant statutory offences
- Case studies of corporate fraud
The “Reasonable Procedures” Defence (20 minutes)
- What qualifies as “reasonable”?
- HM Government guidance (anticipated and actual)
- Proportionality and risk-based approach
- Examples of internal controls, training, and reporting mechanisms
- Ref Skanson case under Bribery Act
Break: 10 Minutes
Session 3: Compliance, Risk Management & Enforcement (60 minutes)
Building a Defence: Compliance Strategies (20 minutes)
- Fraud risk assessments
- Corporate governance and tone from the top
- Embedding culture of compliance
- Monitoring and internal audit
Investigations and Enforcement Risk (20 minutes)
- Role of the Serious Fraud Office (SFO), CPS, and FCA
- Deferred Prosecution Agreements (DPAs)
- Corporate cooperation and self-reporting
- Penalties and reputational risk
Practical Workshop: Case Study and Risk Scenarios (20 minutes)
- Interactive group activity
- Delegates analyse a case and suggest compliance measures
- Group discussion
Conclusion and Q&A (10 minutes)
- Summary of key points
- Resources and further reading
- Q&A
- Feedback
Get in touch about our 'Understanding the UK Offence of Failure to Prevent Fraud' course
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