When does the failure to prevent fraud offence come into force?
The failure-to-prevent-fraud offence in the Economic Crime and Corporate Transparency Act 2023 came into force on 1 September 2025, commenced by the Commencement No. 4 Regulations 2025 (SI 2025/349).
Not sure this applies to you? The offence targets large organisations that meet the size test — check whether you are in scope.
In short
- In force: 1 September 2025
- Commenced by SI 2025/349 (Commencement No. 4 Regulations 2025)
- The reasonable-procedures defence depends on evidence built over time
From the commencement date, conduct by an associated person can engage the offence. The practical implication is that in-scope organisations need to be able to show the fraud-prevention procedures that were in place and operating.
Because the defence is evidence-led, the value of a defence file is cumulative: it is the record built before any incident that matters. DefenceFile helps you organise that record from day one.
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
- ECCTA 2023 Commencement No. 4 Regulations 2025 (SI 2025/349)
Made 2025-03-13; s.199 in force 2025-09-01; 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.