By Jonathan B. New, Patrick T. Campbell and Jamie Reiner

In October 2023, the United Kingdom created a new strict liability crime as part of its ongoing effort to clamp down on corporate fraud. Modeled after the UK’s strict liability offenses for failure to prevent bribery and tax evasion, the failure to prevent fraud offense (FTPF offense) holds companies liable for frauds committed by their employees, agents, and other individuals who provide services on their behalf, even if the company did not authorize or know about the fraudulent conduct. Companies do not have to be based in the UK to face liability under the FTPF offense. The statute applies to conduct with a UK nexus or that causes harm in the UK, regardless of where the company is located.