In Law360, Amanda Raad Discusses the Challenges Firms Face in Preparing for the Failure to Prevent Fraud Offense

In a Law360 article, Amanda Raad, co-head of the firm’s anti-corruption and international risk and crisis management & investigations practices, observes that some finance firms are focusing too heavily on finding loopholes to avoid the "failure to prevent fraud" offense, which targets fraud committed by staff for the benefit of the company. The offense comes into force on 1 September 2025 and applies to businesses operating overseas which have a UK nexus.

Amanda emphasizes that fraud spans geographies and business functions, requiring firms to break down silos and involve all key stakeholders to mitigate risk – a process she notes can be challenging. From September 1, firms will be required to report breaches simultaneously to the FCA, SFO, and potentially the National Crime Agency to meet obligations, ensuring a comprehensive regulatory response.