Does the failure to prevent fraud offence apply to overseas companies?
The offence can apply to a large organisation incorporated or formed anywhere, provided the size test is met and there is a UK nexus — broadly, where the fraud or a relevant act takes place in the UK, or the gain or loss occurs in the UK. It is not limited to UK-incorporated bodies.
In short
- Not limited to UK-incorporated organisations
- Needs the large-organisation size test to be met
- Needs a UK nexus to the fraud (act, gain, or loss in the UK)
- Both questions are fact-specific
For an overseas group, the two questions are whether the relevant body meets the large-organisation size test, and whether the particular conduct has the required UK nexus. Both are fact-specific and turn on the structure and the facts of the conduct.
DefenceFile helps overseas groups organise the scope-screening inputs — entity data, the size test, and UK-nexus notes — and reserves the legal conclusion for qualified reviewers. It does not decide whether you are in scope.
The sample board pack — a one-page view of where evidence is complete and what is missing — opens in your browser, no email, no form.
Official sources
- Home Office failure-to-prevent-fraud guidance v1.5
Updated 2025-10-10; accessed 2026-06-15.
- Economic Crime and Corporate Transparency Act 2023
Royal Assent 2023-10-26; accessed 2026-06-15.
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DefenceFile organises evidence for legal and compliance review. It does not provide legal advice, create privilege, certify scope, certify reasonable procedures, or guarantee that a statutory defence will succeed.