Economic Crime and Corporate Transparency Act (ECCTA)

The Economic Crime and Corporate Transparency Act (ECCTA) is a significant piece of legislation aimed at strengthening the UK’s framework for combating economic crime and enhancing corporate transparency. Enacted in response to growing concerns about money laundering, fraud, and other financial crimes, ECCTA seeks to create a more transparent and accountable business environment. Two of its primary aims include enhancing the scope of corporate liability for a number of offences, and creating the offence of failure to prevent fraud. This legislative effort builds on previous measures and reflects the government’s commitment to tackling financial crime and ensuring the integrity of the corporate sector.

Of significance to organisations with a presence in the UK, the senior managers regime introduced by ECCTA from 26 December 2023 means that, where a senior manager commits a relevant offence (this includes fraud, bribery, and sanctions offences) within the actual or apparent scope of their authority, the organisation, too, will be guilty of that offence. The penalty is an unlimited fine.

Additionally, from 1 September 2025, ECCTA will introduce a new offence of failure to prevent fraud. This offence applies to 'large organisations', or entities whose parent undertakings are large organisations, who will be guilty of the offence where: (i) an associated person commits a fraud offence intending to benefit that organisation, or any person to whom the associated person provides services on behalf of that organisation, or (ii) where an employee of an organisation commits a fraud offence intending to benefit that organisation, where that organisations' parent undertaking is a large organisation. Organisations who are found liable are subject to an unlimited fine where they are unable to prove they had taken reasonable steps to prevent fraud.

DLA Piper's ECCTA hub provides tools and guidance to tackle the changes introduced by ECCTA.

This video series covers important topics, such as:

• Overview of the Economic Crime and Corporate Transparency Act, highlighting significant changes.
• Reforms to Companies House, including updates to its processes and functions.
• Introduction of powers related to the seizure of cryptocurrency.
• Enhancements to the ability of regulators to gather intelligence.
• Discussion of corporate criminal liability and its evolving framework.
• Examination of non-partisan amendments affecting Companies House operations.
• Insights into the complexity of economic crime investigations, including initial triage processes for whistleblower accounts.