What Does the New Offence Cover? The offence applies to large organisations, holding them criminally liable if an employee, agent, subsidiary, or other associated person commits a relevant fraud offence intending to benefit the organisation. Covered fraud offences include, but are not limited to:
Additional NHS-Specific Advice Use NHSCFA’s resources for NHS bodies and match your procedures to the requirements of the Government Functional Standard. Look to implement continuous improvement. Set a timeline for regular reviews and enhancements of your anti-fraud measures. Why Act Now? Failure to prepare may result in unlimited fines and reputational harm if your organisation is found liable after a fraud occurs. Regulatory leaders and the Serious Fraud Office have made it clear that there will be robust enforcement.
Key Practical Steps to Take Now
1. Review and Update Policies Adapt your policies to incorporate the new failure to prevent fraud offence. This includes whistleblowing, HR, fraud, and communications policies. Ensure sub-contractors are also included in fraud prevention measures. 2. Establish Clear Reporting Pathways Make sure there are straightforward processes for staff to report concerns about fraud. Promote a culture where fraud prevention is everyone’s responsibility. 3. Demonstrate Reasonable Prevention Procedures You must be able to show that you have taken reasonable steps to deter, prevent, and detect fraud. Your procedures should be tailored using guidance from the Economic Crime and Corporate Transparency Act 2023, statutory Home Office advice, and resources from NHSCFA. 4. Map to the Six Principles for Fraud Prevention The Home Office guidance outlines six key principles, as follows
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Fraud by false representation
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Fraud by abuse of position
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Fraud by failing to disclose information
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False accounting
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Participation in fraudulent business
Final Checklist for Healthcare Organisations
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Cheating the public revenue
✓ ✓ Review the statutory Home Office guidance side by side with the NHSCFA’s practical advice.
If prosecuted, an organisation’s main defence will be to demonstrate it had “reasonable procedures” in place to prevent fraud, or that it was not reasonable to expect such procedures. Who Is Affected? In the healthcare sector, the legislation primarily targets large organisations, including NHS trusts and their subsidiaries. It has extra-territorial reach, meaning it applies to organisations based outside the UK if there is a UK connection, such as NHS contracts or affected NHS services.
✓ ✓ Complete a fraud risk assessment.
✓ ✓ Adapt and update all relevant internal procedures and policies.
✓ ✓ Roll out employee and contractor training.
✓ ✓ Establish evidence trails documenting your anti-fraud efforts.
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Top-level commitment: Senior leaders should set the tone and priorities.
If you have any questions regarding the new offence, please do get in touch with our Counter Fraud Team.
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Risk assessment: Regularly identify and understand fraud risks.
What Should NHS Bodies and Large Organisations Do to Comply?
The NHSCFA urges all organisations in scope to act now. Statutory guidance published by the Home Office should be used alongside NHS- specific advice.
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Proportionate procedures: Tailor actions to your risk profile.
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Due diligence: Check backgrounds of employees, agents, and partners.
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Communication and training: Promote awareness and provide targeted training.
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Monitoring and review: Evaluate controls and update them as needed.
5. Tailor Procedures to Your Organisation Assess what is reasonable for your circumstances and ensure procedures are proportionate to the size and nature of your organisation. 6. Prepare Documentation Keep evidence of your policies, risk assessments, communications, and training as this supports your defence if required.
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