Corporate criminal liability - managing the risk

This subtopic contains guidance on the provisions of the Economic Crime and Corporate Transparency Act 2023 (ECCTA 2023) relating to corporate liability for criminal offences committed by senior management and tools to help organisations manage the related risks.

ECCTA 2023 received Royal Assent on 26 October 2023. It is intended to strengthen the UK’s fight against economic crime. One of the most significant elements of the ECCTA 2023 for commercial organisations is the extension of corporate criminal liability for the actions of senior managers, which represents a significant expansion of liability.

The regime

Section 196 provides that if a senior manager of an organisation acting within the actual or apparent scope of their authority commits a relevant offence, the organisation is also guilty of the offence.

This offence applies to body corporates and partnerships, as defined.

Section 196(4) provides that a senior manager is someone who plays a significant role in:

•
making decisions about how the whole or a substantial part of the activities of the organisation are to be managed or organised, or
•
managing or organising the whole or a substantial

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

TAKE A FREE TRIAL

Latest Practice Compliance News

Law Society publishes guidance on disability terminology and language

The Law Society of England and Wales has published guidance on disability terminology and language to support employers and employees in the workplace. The guide is aimed at ensuring that the legal profession is using the right words, phrases and acronyms when talking about disability.

SFO launches bribery investigation into defence firm Thales

The Serious Fraud Office (SFO) has initiated an investigation into suspected bribery and corruption involving the multi-national aviation and defence electronics group Thales. This probe is being conducted jointly with the French authority Parquet National Financier (PNF), with each agency operating within its respective jurisdiction. The investigation targets Thales Group, headquartered in Paris, whose UK subsidiary employs over 7,000 staff across 16 sites. SFO director, Nick Ephgrave QPM, highlighted the importance of international collaboration in combating corruption, emphasising the longstanding relationship between the SFO and PNF. The agencies have informed Thales of the investigation and are committed to rigorously pursuing all avenues in their inquiry into these serious allegations.

HM Treasury issues advisory on Oil Price Cap evasion tactics

HM Treasury (HMT)and the Office of Financial Sanctions Implementation (OFSI) have released an advisory concerning the Oil Price Cap (OPC) regime. The guidance specifically addresses evasion strategies involving the manipulation of product origin through the use of fabricated and falsified Certificates of Origin (CO). This advisory aims to alert relevant parties to the risks associated with such practices and to enhance compliance efforts within the oil trade sector.

Practice Compliance weekly highlights—21 November 2024

This week's edition of Practice Compliance weekly highlights includes: the latest financial sanctions updates, three new consultations from the Solicitors Regulation Authority (SRA) on client money management and consumer protection, initiation of a consultation for legal regulators to combat economic crime by the Legal Services Board (LSB), and new guidance from the SRA on internal investigations, together with a suite of guidance for in-house solicitors.

View Practice Compliance by content type :

News