Are you a large charity?

The Charity Commission for England and Wales, with a strong focus on regulatory matters, has issued an alert to large #charities warning them of upcoming legislation targeting fraud.

The Economic Crime and Corporate Transparency Act 2023 aims to enhance transparency and prevent economic crime.

The ‘failure to prevent fraud offence’ will be implemented on 1 September 2025. after which organisations could be criminally liable if an ‘employee, agent, subsidiary, or other associated person, commits a fraud intending to benefit the organisation and the organisation didn't have reasonable fraud prevention procedures in place’. This is applicable regardless of intent or whether senior members of staff knew it was taking place. Organisations must now ensure they have adequate fraud prevention measures in place or face fines if convicted.

As part of its alert, the Charity Commission also advised that charities read its guidance about internal financial controls

https://www.gov.uk/government/publications/internal-financial-controls-for-charities-cc8/internal-financial-controls-for-charities