In the latest Forward Law Review article, BCL Partner, Tom McNeill, explains how recent reforms have expanded corporate criminal liability in the UK, particularly in areas now seen as “ESG” risks. The introduction of the “failure to prevent” (FTP) fraud offence, alongside major changes to the identification doctrine, means companies can now be prosecuted far more easily for both economic and regulatory wrongdoing.
Under the FTP model, organisations may be liable for fraud committed by employees or associated persons unless they can show “reasonable procedures” were in place, yet government guidance remains extremely limited. Meanwhile, the broadened “senior manager test” attributes criminal liability to companies for a wide range of offences committed by senior managers, with no reasonable procedures defence available.
These reforms elevate risks around environmental reporting, data integrity, and potential “greenwashing,” and even allow for private prosecutions. As Tom highlights, enforcement expectations and penalties continue to rise, leaving UK companies facing an increasingly demanding compliance environment.
To read the full article click here.
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