Policy & Compliance
“ The new offence will make it easier to prosecute organisations for fraud as it will no longer be necessary to demonstrate that a director or senior manager committed or knew about the fraud offence to secure a conviction
management to lead by example and foster a culture where fraud is never acceptable. They should, for example, commit to training and the implementation of fraud prevention procedures throughout the organisation. 2. Risk assessment: organisations to adopt a dynamic approach to assessment of risk which must be kept regularly under review. This will include looking to identify the different types of risk presented to different associated persons within the organisation. 3. Proportionate risk-based fraud prevention procedures: fraud prevention procedures need to be proportionate to the risk faced and the nature of an organisation’s operations. Those procedures should be clear, practical, accessible and effectively implemented and enforced. 4. Due diligence: due diligence proportionate to the fraud risk should be undertaken on
associated persons including contract reviews for agents and service providers and monitoring for increased fraud risk on account of stress, targets or workload. 5. Communication: clear communication of fraud prevention policies and procedures to encourage compliance. Regular training is key. 6. Monitoring and review: regular monitoring and review of fraud detection and prevention procedures and making improvements where necessary. The guidance makes it clear that there is not a one-size-fits-all approach to reasonable procedures. It needs to be adapted to the nature of each organisation, its employees, agents and supply chains. What you need to know The new offence will make it easier to prosecute organisations for
fraud as it will no longer be necessary to demonstrate that a director or senior manager (‘the directing mind and will’ of the organisation) committed or knew about the fraud offence to secure a conviction. Organisations that are potentially caught by this new offence should review, and if necessary, develop and enhance existing procedures to prevent fraud. BIFA would like to thank Matt Strarron (email Matthew- Stratton@birketts.co.uk) at Birketts Solicitors for writing this article for BIFAlink. The content of this article is for general information only. It is not, and should not be taken as, legal advice. If you require any further information in relation to this article, please contact the author in the first instance. Law covered as at September 2025.
October 2025 | 21
www.bifa.org
Made with FlippingBook Annual report maker