Government establishes new corporate fraud offence

From September 2025, large businesses can be held criminally liable if their employees/agents/associated persons commit fraud, intending to benefit the organisation. To defend themselves, organisations would have to show they had ‘reasonable fraud prevention measures’ in place when the fraud was committed, like policies, reporting procedures, training, risk assessments, and fraud detection checks. ‘Large’ here means an organisation with two or more of the following: a turnover of more than £36 million; a balance sheet of more than £18 million; and/or more than 250 employees.  

Whilst this doesn’t directly concern SMEs, fraud can impact any businesses, regardless of size. The ONS reported that fraud increased by 31% last year – so it’s vital all businesses have a robust anti-fraud culture. This area falls outside of employment law and HR advice, so you should seek commercial legal advice on the correct steps to take. You can find out more about the government’s guidance on this new offence here. We’ve also put together a Fraud Prevention Policy to give you some food for thought when taking that advice.