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Last week saw the UK government's long-awaited introduction of a proposed new criminal offence of failure to prevent fraud, which would apply to both UK and non-UK incorporated entities that fall within its scope.

While this blog is focused primarily on civil action in respect of fraudulent and dishonest conduct, it is often the case that such conduct can be the subject of both civil and criminal action. The interaction between the civil and criminal law and procedures in such situations is governed by (somewhat technical) legal principles. But, for both civil fraud claimants and defendants, any potential for parallel criminal action will an important factor in the mix when formulating their litigation strategy - including as to where and when civil action should be brought, sources of evidence, and settlement decisions.

As currently drafted, there would appear to be some potential for the new offence to apply in scenarios that could also be the subject of civil fraud claims in the commercial courts. However, the proposals are still at an early stage in the Parliamentary process and any potential impact in the civil fraud context remains to be seen.

For more on the proposed offence, see this briefing from our Corporate Crime team.


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Jeremy Garson

Partner, London

Jeremy Garson