FSR and Corporate Crime notes
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22 Mar 2024
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Brought to you by our Corporate Crime and Investigations team, The Fraud Files: Decoding the Economic Crime Act breaks down everything listeners need to know about the Economic Crime and Corporate Transparency Act 2023, its impact on corporate criminal liability, and the new offence of failure to prevent fraud.
Join our experts as they break down, episode by episode, key elements of the new offence and examine its impact across different sectors and types of fraud.
Latest Episode
Episode 5: Associated persons and failure to prevent fraud
Under the new offence of failure to prevent fraud, companies can incur liability as a result of acts by their "associated persons". In this episode Elizabeth Head, Rob Hunt and Shannan Casey-Black discuss the types of third parties that can be "associated persons" for this purpose, consider how this compares with similar concepts under the Bribery Act 2010 and the Criminal Finances Act 2017, and provide some advice to companies as they start to think about their risks in this area.
You can also read our accompanying briefing on this topic, which is available on our blog.
ALL EPISODES
Episode 1: Failure to prevent – an introduction
In this initial episode, Susannah Cogman, Elizabeth Head and Jessica Chappatte provide an overview of the key provisions of the new Act and its impact on corporates, as well as some teasers for future episodes.
You can find links to further background reading mentioned in this episode below:
Economic Crime and Corporate Transparency Act passed in UK Parliament
The Economic Crime and Corporate Transparency Bill: where are we now?
Failure to prevent fraud – what are the implications of the new offence?
Episode 2: Bonus episode on Companies House and POCA reform
We have recorded a special bonus episode of the Fraud Files podcast which departs from our analysis of the failure to prevent fraud and identification doctrine reform elements of the Economic Crime Corporate Transparency Act 2023 (the "Act") and provides an overview of the other changes introduced by this piece of omnibus legislation. In this episode, hosted by Elizabeth Head, Sarah Hawes talks through the Act's extensive reforms to Companies House, and Susannah Cogman provides an overview of other changes introduced by the Act, including in particular in relation to the Proceeds of Crime Act.
Episode 3: Jurisdictional scope of the new Failure to Prevent Fraud Offence
Which companies inside or outside the UK may be liable under the new Failure to Prevent Fraud Offence? How should companies think about jurisdiction in scoping their 'reasonable procedures' project? In this episode, Susannah Cogman, Brian Spiro and Ali Grodzki provide an overview of the jurisdictional scope of the Failure to Prevent Fraud Offence, which is potentially very broad and differs in important ways from that of the failure to prevent bribery offence under the Bribery Act 2010.
You can also read our accompanying briefing on this topic, which is available on our blog.
Episode 4: Focus on the financial sector – APP fraud
In the first of our "crossover" episodes, Susannah Cogman is joined by Jenny Stainsby from HSF's Financial Services Regulatory team to look at the financial sector's current focus on APP fraud, its interaction with the offence of failure to prevent fraud, and other steps being taken to tackle this widespread fraud typology. Stay tuned for Part 2 of our financial sector focus where we will be looking at some of the other implications of the Economic Crime and Corporate Transparency Act 2023 for financial institutions, as well as further episodes focusing on other key aspects of the Act.
You can find further information on APP fraud and the FCA's approach to fraud prevention here:
APP fraud and vulnerable customers – lost in implementation?
APP Fraud: Prevention is surely better than paying out
APP Fraud – the UK is increasingly looking out of step
Tackling APP Fraud in the UK: where to next?
Proceeds of fraud - Detecting and preventing money mules
Firms should strengthen anti-fraud systems and must treat victims of fraud better, review finds
Anti-fraud controls and complaint handling in firms (with a focus on APP Fraud)
Episode 5: Associated persons and failure to prevent fraud
Under the new offence of failure to prevent fraud, companies can incur liability as a result of acts by their "associated persons". In this episode Elizabeth Head, Rob Hunt and Shannan Casey-Black discuss the types of third parties that can be "associated persons" for this purpose, consider how this compares with similar concepts under the Bribery Act 2010 and the Criminal Finances Act 2017, and provide some advice to companies as they start to think about their risks in this area.
You can also read our accompanying briefing on this topic, which is available on our blog.
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Legal Notice
The contents of this publication are for reference purposes only and may not be current as at the date of accessing this publication. They do not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking any action based on this publication.
© Herbert Smith Freehills 2024
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