To help NHS organisations to understand the impact of the new offence, we have produced supplementary guidance focusing on the failure to prevent fraud offence. This provides an overview of the offence and sets out the actions and next steps that NHS organisations might consider when preparing for implementation of the offence. This guidance will supplement the Home Office guidance on failure to prevent fraud and should be used alongside this.
The failure to prevent fraud offence under the Economic Crime and Corporate Transparency Act 2023 holds large organisations criminally liable if an employee, agent, or subsidiary commits fraud for the organisation’s benefit and the organisation lacks reasonable fraud prevention procedures. This legislation aims to encourage businesses to implement stronger anti-fraud measures, similar to existing laws on bribery and tax evasion. NHS bodies are likely to come under the scope of this act.
It provides an overview of the offence and sets out the actions and next steps that NHS organisations should consider to mitigate the possible risk of prosecution.
About our guidance
The guidance provides advice on the following areas:
- The Economic Crime and Corporate Transparency Act 2023
- The failure to prevent fraud offence
- Reasonable fraud prevention procedures
- Associates of a large organisation
- Statutory guidance and references to NHSCFA
- Impact on NHS Bodies
- Next steps – how to comply
- Similarities and differences to other failure to prevent offences
This guidance supplements the Home Office guidance on failure to prevent fraud and should be used alongside it.
NHS organisations should now review existing fraud prevention measures to determine whether adjustments are needed in light of this guidance.