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 Economic Crime and Corporate Transparency Act 2023 (ECCTA)?
• Why was it introduced?
• Key changes introduced by the ECCTA
• The new UK "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

• This failure to prevent fraud training looks at 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, and the consequences)
• Case studies – fraud prosecutions and likely outcomes under the new offence

Wrap-Up

• Summary
• Questions

With over 20 years of experience in financial services, Redcliffe's failure to prevent fraud training specialist 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. Here, he was 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.

His 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 (FCA). he was the divisional expert for the rules and outcomes required under the Training & Competence handbook. This, along with five years at Barclays in their Private Clients and Wealth functions.

He has worked with retail, commercial, wholesale and private banking channels. Since leaving HSBC, he has worked with the compliance, HR and operational teams to enhance their regulatory understanding, as well as delivering content to private equity firms, investment houses, banks and wealth managers. Our course leader also delivers core programmes for TISA and the Investment Association.

He 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.

Redcliffe’s failure to prevent fraud training will cover the following:

• What is the "Failure to Prevent" Fraud Offence
• Determine who is criminally liable under the new offence
• Outline the "reasonable procedures" for fraud prevention
• Plan how to conduct a fraud risk assessment
• Assess how to put in place effective fraud prevention policies and procedures
• Consider options for training your employees on existing fraud prevention frameworks
• Recognise the potential consequences of failing to prevent fraud

Following the Bribery Act 2010, the ECCTA 2023 introduces a new Fraud Offence in September 2025. This places greater responsibility on businesses to prevent fraud within their organisations. Failure to prevent fraud training is critical for:

• Organisations requiring a comprehensive understanding of the new offence and the knowledge and tools to ensure their business is compliant.
• Second and third-line staff advising risk owners or evaluating systems and controls in place to meet vulnerability requirements will find this course valuable in ensuring appropriate coverage of their work.

Redcliffe's Failure to Prevent Fraud training will provide you with a comprehensive understanding of the new legislation and its implications for your firm. Participants will leave with a clear understanding of the obligations under the "Failure to Prevent Fraud" offence and will benefit the organisation they represent.

Gain insight into the legislation’s legal framework, the six guiding principles that constitute reasonable prevention procedures, and how to identify potential fraud risks. During this course, you will explore the scope of the offence, understanding who is an "associated person" and how this person commits actions that could trigger corporate liability. The training emphasises the importance of establishing a robust anti-fraud culture, and the practical steps for implementing effective prevention measures: risk assessments, due diligence, internal controls, reporting mechanisms.

We explore real-world case studies and scenarios, allowing participants to apply their knowledge and understand how to interpret the legislation in practice. Learn how to document your prevention procedures, demonstrating compliance to regulators and avoiding potential penalties.

Guidance on how to install adequate training for employees and third parties is also provided. This ensures that all relevant personnel understand their responsibilities in preventing fraud.

Failure to Prevent Fraud Training will enable delegates to put in place effective prevention strategies and mitigate the risk of corporate liability. Course material also emphasises the importance of continuous improvement and adaptation to evolving fraud risks, ensuring long-term compliance and ethical business practices.