199 Failure to prevent fraud
Economic Crime and Corporate Transparency Act 2023 (2023 c 56) | Legislation

Failure to prevent fraud

199  Failure to prevent fraud

(1)     A relevant body which is a large organisation (see sections 201 and 202) is guilty of an offence if, in a financial year of the body (“the year of the fraud offence”), a person who is associated with the body (“the associate”) commits a fraud offence intending to benefit (whether directly or indirectly)—

(a)     the relevant body, or

(b)     any person to whom, or to whose subsidiary undertaking, the associate provides services on behalf of the relevant body.

(2)     A relevant body is also guilty of an offence under subsection (1) if—

(a)     an employee of the relevant body commits a fraud offence intending to benefit (whether directly or indirectly) the relevant body,

(b)     the fraud offence is committed in a financial year of a parent undertaking of which the relevant body is a subsidiary undertaking (“the year of the fraud offence”), and

(c)     the parent undertaking is a relevant body which is a large organisation.

(3)     But the relevant body is not guilty of an offence under subsection

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