The “Failure to Prevent Fraud” Offence: Complying with the ECCTA 2023 Obligation

Session 1: Introduction and Background – why this legislation and why now?

• What is the ECCTA and why was it introduced?
• Key changes introduced by the ECCTA
• The new "Failure to Prevent" Fraud Offence

Session 2: Requirements

• Understanding the offence
• Who is liable
• What are the requirements
• The “Reasonable Procedures” defence

Session 3: Practical implementation

• Risk assessments and fraud assessments
• Top-level commitment
• Proportionate risk-based prevention procedures
• Due diligence – internal and external
• Demonstrating effective communication and proactive training
• Monitoring and review
• Escalation and documented senior management considerations 

Session 4: Consequences for failure

• Penalties for non-compliance (fines; jail; reputation)
• Enforcement (who; what powers; consequences)
• Case studies – fraud prosecutions and likely outcomes under the new offence

Wrap-up

• Summary
• Questions

With over 20 years training experience in financial services, Redcliffe's course trainer is well placed to support you across a range of compliance-related topics.  He is a former Head of Education for HSBC covering the UK and Europe, responsible for regulatory and financial crime related compliance learning.  His time at HSBC was during intense scrutiny from regulators and government functions during the bank’s Deferred Prosecution Agreement.

 Other roles include leading the Monitoring and Testing programme for a UK Wealth Manager, and Senior Vice President responsible for Global Risk & Compliance training at a US-based bank.  He also worked in the Insurance Firms division at the Financial Conduct Authority (in the FSA days) where he was the divisional expert for the rules and outcomes required under the Training & Competence handbook.

 The HSBC role, along with five years at Barclays in their Private Clients and Wealth functions, has seen the trainer work with retail, commercial, wholesale and private banking channels.  Since leaving HSBC, he has worked with the compliance, HR and operational teams of firms to enhance their regulatory understanding, as well as delivering content across private equity firms, investment houses, banks and wealth managers.  Our trainer regularly delivers core programmes for TISA and the Investment Association.

The course leader is a former member of the Investment Management Association Training & Education Committee and won the Thomson Reuters award for “Most Effective Compliance Training at a Regulated Firm” in 2010.

• Understand what constitutes the "Failure to Prevent" Fraud Offence
• Determine who is liable under the new offence
• Outline the "reasonable procedures" for fraud prevention
• Begin to formulate how to conduct a fraud risk assessment
• Assess how to implement effective fraud prevention policies and procedures
• Consider options for training your employees on fraud prevention
• Recognise the potential consequences of failing to prevent fraud

• We are well aware of how legislation impacts firms, particularly when FCA expectations have changed.
• We have served clients of all shapes and sizes in the financial sector and are fully aware of the obligations of a regulated firm and what is expected from them by the regulator.
• We have been delivering training for over 20 years. We are certain we know the topic as well as anyone in the market place
• The Economic Crime and Corporate Transparency Act course director is experienced as both a regulator and in training regulatory requirements across wholesale and retail financial firms. He will pass on past experiences to enhance the workshop and help bring it to life
• We do not use academics. All our trainers are highly experienced professionals with relevant vocational experience in the real world
• Our case studies enhance the learning points and are often found to be essential in truly understanding the requirements and growing the skills to apply them
• We are always judged by our results which speak for themselves and the feedback received from previous delegates has always been excellent.

• The Economic Crime and Corporate Transparency Act 2023 introduces a new "Failure to Prevent" Fraud Offence, placing greater responsibility on businesses to prevent fraud within their organisations. This course will provide you with a comprehensive understanding of the new offence and equip you with the knowledge and tools to ensure your business is compliant.
• Second- and third-line staff who are advising risk owners or evaluating systems and controls in place to meet vulnerability requirements, will also find this webinar valuable in ensuring appropriate coverage of their work.

This session equips attendees with a comprehensive understanding of the legislation and its implications for their firm. Participants gain insight into the legal framework, including the six guiding principles that constitute reasonable prevention procedures, and learn how to identify potential fraud risks.

They will explore the scope of the offence, understanding who is considered an "associated person" and how their actions could trigger corporate liability. Crucially, the training emphasises the importance of establishing a robust anti-fraud culture, covering practical steps for implementing effective prevention measures, from risk assessments and due diligence to internal controls and reporting mechanisms.

The course will delve into real-world case studies and scenarios, allowing participants to apply their knowledge and understand how the legislation is interpreted in practice. They will learn how to document their prevention procedures, ensuring they can demonstrate compliance to regulators and avoid potential penalties. Guidance on how to implement adequate training for employees and third parties is also provided, ensuring that all relevant personnel understand their responsibilities in preventing fraud.

 Participants will leave with a clear understanding of their organization's obligations under the "Failure to Prevent Fraud" offence, enabling them to implement effective prevention strategies and mitigate the risk of corporate liability. The training also emphasizes the importance of continuous improvement and adaptation to evolving fraud risks, ensuring long-term compliance and ethical business practices.