New measures to tackle fraud

A new anti-fraud law came into effect on 1 September 2025, designed to hold large organisations to account if they profit from fraud.

Introduced as part of the Economic Crime and Corporate Transparency Act (ECCTA) 2023, the change creates a new corporate offence of ‘failure to prevent fraud’ that heralds a shift in the UK’s fight against economic crime.

Under the new law, which was passed with cross-Parliament support, large organisations can be held criminally liable where an employee, agent, subsidiary, or other ‘associated person’ commits a fraud intending to benefit the organisation.

Examples may include:

• dishonest sales practices
• hiding important information from consumers or investors
• dishonest practices in financial markets.

Penalties under ECCTA can include: unlimited fines for the organisation; a criminal record; reputational damage, civil lawsuits from shareholders, clients or competitors claiming negligence; and regulatory scrutiny and sanctions.

BVRLA members need to be aware of their responsibilities for ensuring staff are not committing fraud.

More information:  New measures to tackle fraud come into effect - GOV.UK