Skip to content.

Secondary navigation

Get Your Demo
Silhouettes of people sitting and standing at tables in a restaurant or café, with a vibrant pink striped neon light wall and hanging lamps in the background.

ECCTA Guidance: Comply with UK Failure to Prevent Fraud Law

Preventing corporate fraud is foundational for risk and compliance programs. In the U.K., the  Economic Crime and Corporate Transparency Act 2023 (ECCTA) is a landmark UK corporate transparency law that introduces strict liability for organizations failing to stop associated persons from committing fraud intended to benefit the organization.

Are you tackling a specific GRC challenge? Or seeking comprehensive risk and compliance support?

Whatever your goals, you might like to see exactly how NAVEX One works. 

Drop your details into the form here – we’ll connect with you within 30 minutes to arrange a demo time and focus that suits you. 

Got questions now? Give us a call on +44 (0)20 8939 1650 - we’re ready to chat.

Get your NAVEX demo

This form is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply to the reCAPTCHA services. You can learn more about how NAVEX processes your personal data by reviewing the NAVEX privacy statement.

Demo successfully requested! A team member will reach out soon to schedule your demo session.   

If you need help or want further info in the meantime, feel free to give us a call at 1-866-297-0224.   

Have a nice day. :)

A geometric pattern of orange and yellow square tiles arranged in a diagonal, overlapping grid, creating a three-dimensional effect with varying shades and lighting.

ECCTA compliance isn’t just a box to check

The ECCTA presents real challenges for organizations, especially those managing international operations, third-party risks and shifting legal landscapes. With enforcement expected from September 1, 2025, understanding and implementing reasonable fraud prevention procedures is required for mitigating significant fines associated with non-compliance.  

For example, organizations need to consider these requirements of the ECCTA:  

  • Expands corporate liability for acts committed by employees, subsidiaries or agents 
  • No need to prove management involvement or intent with focus being on the failure to prevent 
  • Applies to all “large organizations “operating in the UK 
  • Prosecution risk rises if “reasonable procedures” aren’t in place 
  • Complex fraud risk landscapes demand tailored prevention strategies

Are you tackling a specific GRC challenge? Or seeking comprehensive risk and compliance support?

Whatever your goals, you might like to see exactly how NAVEX One works. 

Drop your details into the form here – we’ll connect with you within 30 minutes to arrange a demo time and focus that suits you. 

Got questions now? Give us a call on +44 (0)20 8939 1650 - we’re ready to chat.

Get your NAVEX demo

This form is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply to the reCAPTCHA services. You can learn more about how NAVEX processes your personal data by reviewing the NAVEX privacy statement.

Demo successfully requested! A team member will reach out soon to schedule your demo session.   

If you need help or want further info in the meantime, feel free to give us a call at 1-866-297-0224.   

Have a nice day. :)

A tilted view of a blue corridor with rectangular skylights casting bright geometric patterns of light and shadow along the walls and floor, creating an abstract, tunnel-like effect.

What Is the ECCTA (Failure to Prevent Fraud Offense)?

The Economic Crime and Corporate Transparency Act 2023 introduces a new criminal offense for failing to prevent fraud. This law requires large businesses to actively implement fraud prevention procedures to avoid liability. 

  • Scope: Applies to companies or partnerships meeting two or more of these criteria: £36M+ turnover, £18M+ in assets, or 250+ employees 
  • Offense Trigger: Criminal liability if an associated person e.g. employee, agent, partner, contractor etc. commits fraud for the organization’s benefit 
  • Precedent: Modeled after the Bribery Act 2010’s adequate procedures standard 
  • Enforcement: With the offense coming into force on September 1, 2025, ECCTA enforcement is expected to be aggressive, particularly in high-risk sectors such as finance and technology.The only available defense is for the organization to demonstrate that it has reasonable fraud prevention procedures in place at the time of the fraud.

Are you tackling a specific GRC challenge? Or seeking comprehensive risk and compliance support?

Whatever your goals, you might like to see exactly how NAVEX One works. 

Drop your details into the form here – we’ll connect with you within 30 minutes to arrange a demo time and focus that suits you. 

Got questions now? Give us a call on +44 (0)20 8939 1650 - we’re ready to chat.

Get your NAVEX demo

This form is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply to the reCAPTCHA services. You can learn more about how NAVEX processes your personal data by reviewing the NAVEX privacy statement.

Demo successfully requested! A team member will reach out soon to schedule your demo session.   

If you need help or want further info in the meantime, feel free to give us a call at 1-866-297-0224.   

Have a nice day. :)

Common challenges in meeting ECCTA compliance requirements

Even well-resourced organizations may struggle to meet ECCTA expectations. From fragmented systems to invisible risks, many internal gaps can leave companies exposed to legal action.

  • Blind spots in fraud risk exposure

    Companies often don’t know where fraud is most likely to occur – especially across sprawling operations or third parties. Without clear mapping, prevention efforts are scattered or misdirected.

Blind spots in fraud risk exposure

Companies often don’t know where fraud is most likely to occur – especially across sprawling operations or third parties. Without clear mapping, prevention efforts are scattered or misdirected.

ECCTA guidance and UK government fraud resources

Abstract image showing blue and orange light streaks converging toward a vanishing point, creating a sense of speed and motion against a dark background.

How the ECCTA differs from the UK Bribery Act

While the UK Bribery Act 2010 set precedent, the ECCTA casts a broader net over business operations and fraud schemes. 

  • Focuses on fraud benefiting the company, not just actions by leadership 
  • Covers third parties like agents, consultants and suppliers 
  • Emphasizes proactive, risk-based fraud prevention 
  • Creates strict liability regardless of intent or awareness

Learn more about the UK’s major anti-bribery and economic crime laws – what they mean, how they overlap, and how to prepare your organization for stronger enforcement.

How to comply with ECCTA requirements

Implementing a defensible ECCTA compliance strategy begins with understanding your ECCTA obligations and building an action plan for fraud risk mitigation. A practical approach to ECCTA compliance involves structured steps that build, document and enforce fraud prevention. These steps align with the UK Government’s ‘reasonable procedures’ guideline:

  • Conduct a fraud risk assessment

    Evaluate where your company is exposed. Start by identifying where fraud is most likely to occur across your operations, including departments, regions and third-party relationships. This helps you prioritize your efforts and tailor prevention measures to your actual risks.

Conduct a fraud risk assessment

Evaluate where your company is exposed. Start by identifying where fraud is most likely to occur across your operations, including departments, regions and third-party relationships. This helps you prioritize your efforts and tailor prevention measures to your actual risks.

How NAVEX One helps you meet ECCTA compliance requirements

Beyond just training, learn how our suite of NAVEX One solutions keeps you compliant with fraud laws.

  • Ethics & Compliance Training

    Educate and engage your people with online training that speaks in their language, to their experiences.

    Learn more

  • EthicsPoint Professional

    Prove you value what your people have to say with NAVEX One EthicsPoint whistleblowing and incident management software.

    Learn more

  • Policy & Procedure Management

    Turn your code of conduct and policies into tools for real conversations.

    Learn more

  • Code of Conduct

    Transform your ethical code into an accessible day-to-day reference.

    Learn more

  • NAVEX One

    Where governance, risk and compliance programs find their solutions.

    Learn more

Meet ECCTA compliance requirements head-on with NAVEX One

Are you tackling a specific GRC challenge? Or seeking comprehensive risk and compliance support?

Whatever your goals, you might like to see exactly how NAVEX One works. 

Drop your details into the form here – we’ll connect with you within 30 minutes to arrange a demo time and focus that suits you. 

Got questions now? Give us a call on +44 (0)20 8939 1650 - we’re ready to chat.

Get your NAVEX demo

This form is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply to the reCAPTCHA services. You can learn more about how NAVEX processes your personal data by reviewing the NAVEX privacy statement.

Demo successfully requested! A team member will reach out soon to schedule your demo session.   

If you need help or want further info in the meantime, feel free to give us a call at 1-866-297-0224.   

Have a nice day. :)