The Charity Commission has issued a reminder to large, incorporated charities about upcoming changes to the law regarding fraud prevention. A new offence of failing to prevent fraud will come into force on 1 September 2025 for all large organisations, including charities.

Who does this apply to?
This new offence, introduced by the Economic Crime and Corporate Transparency Act 2023, will affect large, incorporated charities that meet at least two of the following three criteria:
• More than 250 employees.
• More than £36m of income.
• More than £18m in total assets.

What is the change?
Under the new law, if an employee, agent, subsidiary, or other “associated person” commits fraud with the intention of benefiting the organisation (or its clients), and the organisation did not have reasonable fraud prevention measures in place, the organisation could be criminally liable.

Guidance on the new offence has been published, which you can read here. This guidance was published by the Home Office after consulting with the Scottish Government and the Department of Justice in Northern Ireland.

If you need assistance reviewing your approach to fraud prevention, please get in touch. We would be happy to help!

See: https://www.gov.uk/government/news/failure-to-prevent-fraud-offence-regulatory-alert