Global intolerance for economic crime is surging. The regulatory frameworks are evolving to hold organisations more accountable. The U.K.'s Failure to Prevent Fraud (FtPF) offence, introduced under the Economic Crime and Corporate Transparency Act 2023, marks a significant shift in corporate criminal liability. The legislation places a direct obligation on large organisations to proactively prevent fraud by associated persons. For Indian businesses with U.K. nexus, the implications are far-reaching.
To demonstrate compliance with the "reasonable procedures" requirement under the U.K.'s FtPF offence, organisations must build their fraud prevention efforts around six core principles: Proportionality, Due diligence, Top-level commitment, Training and communication, Risk assessment, and Monitoring and review. These principles offer a foundation for sound governance and should serve as a guide for internal accountability.
At KPMG in India, we bring deep insight into fraud risks, robust methodologies, and hands-on experience providing fraud prevention, detection and mitigation advisory. We assist organisations by supporting in-depth assessment and execution of tailored fraud risk management plans that include evaluating current control measures against reasonable procedures benchmarks.
