10/09/2025
Understanding the UK’s Economic Crime and Corporate Transparency Act
This landmark law has quietly redefined corporate accountability:
Key Change:
For the first time, a company can be prosecuted if an employee, agent, or third party commits fraud for the company’s benefit, even if senior management had no knowledge or involvement.
Who Does It Apply To?
🏢Companies that meet 2 out of 3 thresholds:
Turnover > £36M
Balance sheet > £18M
250 employees
Consequences: Unlimited fines, Criminal liability for the business, Severe reputational and commercial damage
What Counts as a Defence?
The only way out is proving that your organisation had “reasonable procedures” in place to prevent fraud.
Question for leaders: Do you see this Act as a genuine fraud deterrent or just another compliance burden?
