The Economic Crime and Corporate Transparency Act is set to bring significant change to how organisations across the UK manage fraud prevention, transparency, and corporate accountability. Coming into force in September 2025, this new legislation will impose tougher obligations on businesses of all sizes.
As a Digital Learning provider, we want to ensure your teams are not only aware of the changes but are also fully equipped to respond with the right Fraud Awareness and Prevention Training.
What is the Economic Crime and Corporate Transparency Act?
Introduced as part of the UK government’s wider efforts to tackle economic crime, the Act is designed to:
- Strengthen corporate transparency
- Improve the accuracy of information held by Companies House
- Clamp down on fraudulent activities
- Introduce new offences and accountability for organisations that fail to prevent fraud
It builds on earlier legislation such as the Bribery Act (2010) and the Criminal Finances Act (2017), but goes much further in scope, including criminal liability for failing to prevent fraud by employees or associates.
Why is the Economic Crime and Corporate Transparency Act Important?
In 2024, the National Crime Agency estimated that 3.4 million incidents of fraud were reported in England alone. According to the Annual Fraud Indicator (2023), workplace fraud costs the UK economy an estimated £219 billion every year. These figures highlight the scale and severity of economic crime, which can affect organisations of all sizes.
Fraud not only causes direct financial losses, but can also damage a company’s reputation, erode trust among stakeholders, and lead to regulatory penalties or legal action. It can also have a significant impact on employee morale, especially if the fraud is committed by a colleague, or goes undetected for long periods. The Economic Crime and Corporate Transparency Act aims to address these challenges by strengthening corporate accountability and making it harder for criminals to exploit UK businesses. For employers, understanding the risks and taking proactive steps to prevent fraud is more crucial than ever.
Who Needs to Comply with the Economic Crime and Corporate Transparency Act?
Although the new offence of failure to prevent fraud will initially apply to large organisations, the overall reforms under the Act affect all businesses registered in the UK, including:
- Financial institutions
- Local councils and public sector bodies
- Charities and not-for-profits
- SMEs and larger corporate groups
Even if your organisation isn’t directly liable under the new offence, you could still be impacted via supply chains, partnerships, or customer due diligence requirements.
Key Provisions of the Act: What You Need to Know
Some of the most significant changes under the Economic Crime and Corporate Transparency Act include:
- A new corporate offence: Companies can be prosecuted if they fail to prevent fraud committed by staff or associated persons.
- Tighter identity verification: Directors, PSCs (Persons with Significant Control), and those filing documents at Companies House must verify their identity.
- Increased powers for Companies House: To scrutinise and reject information that appears misleading or fraudulent.
- Wider liability: Senior managers can be held individually accountable in certain circumstances.
The clear message is that organisations must take proactive steps to prevent economic crime or risk criminal sanctions.
Why Fraud Awareness and Prevention Training is Essential
With the clock ticking towards implementation in September 2025, now is the time to act. While updating systems and processes is essential, embedding a culture of awareness and compliance across your workforce is equally important.
Fraud Awareness and Prevention Training helps your employees to:
- Recognise suspicious behaviour and red flags
- Understand what constitutes fraud under the new Act
- Know how to report concerns safely and effectively
- Understand the legal and reputational risks of non-compliance
- Play a proactive role in safeguarding your organisation
Training is one of the clearest ways to demonstrate that you’re taking “reasonable steps” to prevent fraud, which is a key defence under the new offence.
Fraud Awareness Online Learning
Our engaging, accessible Fraud Awareness and Prevention eLearning course is designed specifically for UK organisations, including public sector bodies and financial institutions. The course is:
- Up to date with the latest legislation (including the Economic Crime and Corporate Transparency Act 2023)
- Fully online and trackable for compliance purposes
- Customisable to your internal policies and reporting structures
- Suitable for all levels of staff, from frontline employees to senior management
By educating your teams now, you can build a solid line of defence and avoid costly consequences in the future.
Prepare Today for Compliance Tomorrow
The Economic Crime and Corporate Transparency Act marks a major shift in corporate accountability. With enforcement beginning imminently, the need for robust fraud prevention measures, including training, is more urgent than ever.
Don’t wait until the legislation comes into effect. Contact us today to learn how our fraud awareness and prevention training can help your organisation stay compliant, protect its reputation, and reduce risk.