MP for South Swindon Sir Robert Buckland has said that he is “very encouraged by developments” after UK Security Minister Tom Tugendhat MP agreed to new provisions, which will help to target law firms, accountants, and other organisations that do not do enough to prevent fraud, false accounting, and money laundering, and form part of the government’s upcoming Economic Crime and Corporate Transparency Bill.
Former Justice Secretary Sir Robert Buckland has long pushed for the legislation, and before the Government announcement, there had been cross-party support in Parliament for him to bring an amendment to the bill creating the offence. It was also recommended by a House of Lords committee in November.
As Sir Robert moved to bring the amendment, the Security Minister informed him that the government would “address the need” for such legislation and asked for his further advice “as to the most effective to conduct this”.
Sir Robert withdrew his amendment following the Security Minister’s assurance.
Sir Robert Buckland explained:
“For crimes such as fraud by companies, prosecutors currently need to prove that a “directing mind” at the organisation intended to commit the offence, which can be extremely difficult.
“These new offences, which I have recommended, will make it easier to prosecute organisations for crimes because prosecutors will only need to prove that the organisation lacked “reasonable” or “adequate” controls to prevent the crime.
UK Government Security Minister Tom Tugendhat MP has confirmed that the new provisions, which are likely to be based on similar “failure to prevent” offences for bribery and evasion, would form part of the new Bill, which is going through Parliament.
