Companies face limitless fines for any failure to prevent fraud

Companies could be prosecuted and face unlimited fines if they fail to prevent fraud that their firm profits from under a corporate law that comes into force today.

- Mark Sweney

Under the failure to prevent fraud offence, large companies can be held criminally liable where an employee, agent, subsidiary or other associated person commits a fraud intending to benefit the organisation.

Examples include dishonest sales practices, hiding important information from consumers or investors, or dishonest practices in financial markets. If a company is prosecuted it will be required to prove to the court that it had reasonable anti-fraud measures in place.