International Anti-Corruption Day 2025: Failure to Prevent Fraud now in force
2 December 2025
International Anti-Corruption Day on 9 December serves as a reminder of the need to highlight, prevent and combat corruption.
This year we’re drawing attention to the new Failure to Prevent Fraud offence which came into force across the UK on 1 September 2025 under the Economic Crime and Corporate Transparency Act.
The new law increases corporate accountability and makes large organisations criminally liable if an “associated person” (for example, an employee, agent, subsidiary or other service provider) commits a fraud intending to benefit the organisation or, in some cases, its clients or service users, unless the organisation can show it had reasonable procedures to prevent it. The fraud does not have to be successful for an organisation to be found guilty, an intention is sufficient to trigger the offence.
The offence applies to all large organisations, including councils, other public sector bodies and organisations within the education sector, that meet at least two of three criteria in the prior financial year: it has more than 250 employees, turnover above £36m, or total assets above £18m. The law applies even where the organisation’s senior leaders were unaware of the misconduct. If a Failure to Prevent offence is proven the penalty can include an unlimited fine.
Veritau is supporting its clients to interpret and implement the legislation and regulatory guidance. If you want to discuss how this may affect your organisation then please get in touch.
Find out more about International Anti-Corruption Day, which is organised by the United Nations, here.
