As Financial Crime and Anti-Money Laundering continue to dominate the regulatory landscape, financial services firms are set on increasing efficiencies, updating legacy systems and adopting new technologies.
Is your firm ready for the new legislation being introduced in the Economic Crime and Corporate Transparency Bill 2022-23?
The new legislation, including the failure to prevent fraud offence, will initially apply to all large corporations, partnerships and public bodies who meet two or more of the following criteria:
- More than 250 employees
- More than £36 million turnover
- More than £18 million in total assets
In a major change to the legislation, criminal liability will be imposed regardless of whether or not an organisation ordered or knew about the fraud and also covers a range of in-scope offences including concealing information from investors and dishonest sales practices.
A conviction can result in an unlimited fine for the organisation with the reputational damage potentially resulting in loss of revenue through negative perceptions from customers, prospects and business partners. In addition, employees may be prosecuted for encouraging or committing fraud.
In order to ensure compliance, all affected organisations must maintain robust policies and controls and demonstrate good practice by having their financial crime compliance protocol independently audited, to safeguard commercial interests and reduce the risk of prosecution.
To learn more about CubeMatch’s Financial Crime Solutions practice: Financial Crime Solutions (FCS) Brochure