A leap forward in corporate liability: failure to prevent economic crime offence

28th April 2022 Business Crime

Business Crime & Regulation Partner Daniel Martin, and Michael Goodwin QC and Anita Clifford of Red Lion Chambers, have co-authored an article considering the potential future introduction of a failure to prevent economic crime offence.

Recent months have seen a significant ramping up of regulatory activity including the rapid passing of legislation aimed at tackling economic crime.

In this article, the authors consider:

  • the mounting support for the introduction of a failure to prevent economic crime offence, particularly in the current political climate;
  • how any introduction of the new offence would represent a considerable expansion on the ‘identification doctrine’;
  • whether the broad scope of the new offence would be matched by an increase in resources at the Serious Fraud Office?

The authors argue that if the proposal to introduce a failure to prevent economic crime offence gains traction, commercial organisations of all sizes would be wise to consider the procedures they have in place already to combat not just bribery and tax evasion (as currently required) but also money laundering and fraud.

Some of the key points that companies need to consider are:

  • How economic crime risk specifically affects your company including not just how the company can fall victim to fraud, but also be used as a conduit for criminal activity.
  • How is the risk to your company impacted by the activities it undertakes and places in which it operates?
  • Risk is not static – there is a need for continuing review.
  • Practical measures in place to mitigate risk.
  • Whether those that act on behalf of the company, not just employees, have an awareness of the measures put in place and have been suitably trained.

You can read the full piece here: [New Law Journal - Specialist Crime]

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Daniel Martin is a Partner located in London in our Business Crime & Regulation department

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