INTRODUCTION Contributed by: Simon Bushell and Gareth Keillor, Seladore Legal
The judgment also refined the practice of serv - ing crypto-asset claims via non-fungible tokens (NFTs). The court imposed conditions to ensure compliance with foreign laws, given that ser - vice via blockchain could be accessed from anywhere in the world. Additionally, it allowed password protection for confidential documents while ensuring publicly available court docu - ments remained accessible. It is therefore clear that the English courts are becoming increasingly sophisticated in dealing with crypto disputes, and willing to apply crea - tive approaches (such as serving via NFTs) to enable victims of fraud to obtain redress through the English judicial process. Failure to Prevent Fraud (FTP) Guidance published On 6 November 2024, the Home Office issued the anticipated guidance on the Failure to Pre - vent Fraud (FTP Fraud) Offence, introduced as part of the Economic Crime and Corporate Transparency Act 2023 (ECCTA). Taking effect from 1 September 2025, this holds large organi - sations criminally responsible if an associated person commits fraud for their benefit, unless the company can demonstrate it had reasonable fraud prevention measures in place. While not legally binding, the guidance provides clarity on how organisations can implement effective fraud prevention frameworks, particu - larly for those with international operations or complex supply chains. Courts will refer to this guidance when determining whether a compa - ny has taken adequate steps to prevent fraud. Although the offence applies only to large organ - isations, the guidance suggests that smaller businesses may also find its principles useful.
The guidance sets out six key principles for effective fraud prevention: • Commitment from Senior Leadership: Execu - tives and senior management should actively promote a strong anti-fraud culture within the organisation. • Fraud Risk Assessment: Businesses must regularly assess their exposure to fraud risks and keep these evaluations updated. While certain risks may not require immediate measures, failing to conduct any assessment is unlikely to be seen as reasonable. • Tailored Prevention Measures: Fraud pre - vention policies should be appropriate for the organisation’s risk profile, clearly imple - mented, and effectively enforced. If existing controls are already sufficient, additional measures are not required. • Due Diligence: A risk-based approach should be applied when evaluating associated per - sons to reduce fraud risks. • Clear Communication and Training: Fraud prevention policies should be well-commu - nicated within the organisation and to exter - nal stakeholders to ensure awareness and compliance. • Ongoing Monitoring and Improvement: Companies should routinely review their fraud prevention procedures, incorporating insights from investigations, whistleblowing reports, and industry best practices. Whilst this is primarily a development in the criminal sphere, it is of relevance to civil fraud practitioners for a number of reasons. First, the creation of internal rules and guidelines within businesses will likely result in documentation being created which might be of assistance in civil claims. It will also likely be more straight - forward for a civil claimant to demonstrate breaches of duty, which might give rise to claims
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