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Failure to prevent fraud
On 6 November 2024, the Home Office published its guidance on the new corporate criminal offence of failure to prevent fraud (FTPF) that was brought in by the Economic Crime and Corporate Transparency Act (ECCTA) 2023. Please see our article for further detail on the FTPF offence.
Corporates have until 1 September 2025 to consider existing compliance procedures, or introduce more robust ones, to counter the effect of associated persons (i.e. employees, subsidiaries, agents, consultants etc.) committing a fraud for the benefit of the entity.
Launch of the Office of Trade Sanctions
On 10 October 2024, the UK launched the Office of Trade Sanctions Implementation (OTSI), a new regulatory body whose creation was initially announced by the UK Government in December 2023.
The creation of OTSI is underpinned by the Trade, Aircraft and Shipping Sanctions (Civil Enforcement) Regulations 2024 which marks a significant development in the country’s approach to enforcing trade sanctions. In particular, the importance of OTSI lies in its role as a specialised body dedicated to civil enforcement on trade sanctions. OTSI sits within the Department of Business and Trade (DBT) and aims to strengthen enforcement by helping businesses comply with sanctions through guidance and online tools, and using their new civil enforcement powers.
The establishment of OTSI represents a significant shift in the UK’s approach to trade sanctions enforcement along with the current global trade sanctions landscape which remains complex and dynamic, particularly concerning Russia, Iran and the Middle East.
We have also identified this as a key topic in the Marine and Political risk sections.
The Office of Financial Sanctions’ Oil Price Cap Advisory
On 21 November 2024, The Office of Financial Sanctions Implementation (OFSI) issued an advisory to help UK business’ ensure adherence to the price cap on Russian oil and avoid the risks of evasion. Recommendations include:
- Confirming that the country listed on the CO is one that produces and exports the stated oil.
- Comparing the oil volume on the CO with historical trade and export data to identify discrepancies.
- Assessing any COs that are incomplete, inconsistent, or contradict publicly available information.
- Using online tools to confirm the CO’s authenticity, particularly if it is issued by a recognised organisation such as a chamber of commerce.
- For self-certified COs, carrying out Know Your Customer (KYC) and Know Your Customer's Customer (KYCC) checks to identify ultimate beneficial ownership and any potential links to Russian entities.
- Reporting any suspected fraudulent activity to the relevant national authorities promptly.
We have also identified this as a key topic in the Marine and Political risk sections.
Public sector
United Kingdom