New rules may reshape compliance across the office imaging supply chain.
From today (1 September), UK law introduces a new corporate offence of failure to prevent fraud. Large organisations can now be held criminally liable if staff, agents, or subsidiaries commit fraud, intending to benefit the organisation.
The offence, part of the Economic Crime and Corporate Transparency Act, mirrors the UK’s 2010 “failure to prevent bribery” law that reshaped corporate compliance. It comes with official guidance and cross-government backing, including the Crown Prosecution Service (CPS), the Serious Fraud Office (SFO) and the Financial Conduct Authority (FCA).
Examples cited include dishonest sales practices, hiding key information from consumers or investors, or manipulating financial markets. In practice, this could extend to the office imaging sector, where resellers misrepresent product yield, distributors conceal the origin of stock, or inflated procurement contracts disguise kickbacks.
Lord David Hanson, Minister with Responsibility for Fraud, said: “Fraud is a pernicious crime, and we are determined to root it out wherever it takes place. This guidance marks the first steps towards a corporate culture shift around fraud prevention.”
Nick Ephgrave QPM, Director of the SFO, warned: “Time is running short for corporations to get their house in order or face criminal investigation.”
For large distributors and OEMs, the law requires demonstrating “reasonable fraud prevention procedures” if challenged in court. Smaller resellers may also feel the effects as compliance checks cascade through the supply chain.
Fraud accounts for 40% of all recorded crime in England and Wales. The new offence aims to make companies more accountable when they profit from it.
The UK is the first country with a dedicated corporate fraud prevention law, but international parallels exist. The US Foreign Corrupt Practices Act and France’s Sapin II already require anti-corruption and fraud controls. Germany has introduced tougher corporate liability rules, and the EU’s Whistleblower Directive also pressures firms to identify and report fraud.
For the imaging aftermarket, this is more than legal theory. Businesses that fail to check their partners’ practices may find themselves exposed. Just as the Bribery Act drove compliance into everyday contracts, this law is expected to reshape fraud prevention across supply chains.
