Does the failure to prevent fraud offence apply to small companies?
The offence is aimed at large organisations that meet the size test, so a body that does not meet the thresholds is generally outside the direct scope of the offence. However, a smaller company can still be an associated person of a large organisation, and group aggregation can bring entities into scope.
In short
- Bodies below the thresholds are generally outside the offence's direct scope
- Smaller firms can still be associated persons of a large organisation
- Group aggregation can bring entities into scope
Two distinct questions matter: whether your own body is a large organisation that can commit the offence, and whether your body is an associated person of a large organisation that expects fraud-prevention assurance from you.
Both questions are fact-specific. DefenceFile helps smaller suppliers organise the attestation and evidence their large-organisation customers ask for, and helps groups assess aggregation, without deciding scope for you.
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.