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

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