Fraud & Economic Crime
Criminal offences of fraud, money laundering, bribery, and proceeds of crime under modern UK legislation.
Introduction
Fraud and economic crime law in England & Wales is primarily governed by the Fraud Act 2006, the Proceeds of Crime Act 2002, and the Bribery Act 2010. The Fraud Act replaced the complex deception offences under the Theft Acts, introducing a general fraud offence with three modes: false representation, failure to disclose information, and abuse of position. The Proceeds of Crime Act provides for confiscation of criminal assets, and the Bribery Act created offences of bribing and being bribed, including corporate liability for failing to prevent bribery.
Core Principles
Fraud by False Representation (s.2 Fraud Act 2006) — Dishonestly making a false representation, intending to make a gain or cause a loss.
Fraud by Failing to Disclose Information (s.3) — Dishonestly failing to disclose information where there is a legal duty to do so.
Fraud by Abuse of Position (s.4) — Dishonestly abusing a position of trust to make a gain or cause a loss.
Money Laundering — Under the Proceeds of Crime Act 2002, offences include concealing, arranging, and acquiring criminal property. Regulated sectors have reporting duties (SARs).
Bribery — The Bribery Act 2010 criminalises bribing another person, being bribed, and bribing a foreign public official. Section 7 creates corporate liability for failing to prevent bribery.
Confiscation Orders — Courts can make confiscation orders under POCA to recover the benefit obtained from criminal conduct.
Corporate Criminal Liability — The Economic Crime (Transparency and Enforcement) Act 2022 and Economic Crime and Corporate Transparency Act 2023 expand corporate liability.
Key Statutes
Fraud Act 2006
Proceeds of Crime Act 2002
Bribery Act 2010
Leading Cases
R v Ivey v Genting Casinos
[2017] UKSC 67
R v Ghosh
[1982] QB 1053
R v Hasan
[2005] UKHL 22
Common Scenarios
Employee committing expense fraud
Likely fraud by false representation (s.2 Fraud Act 2006) or fraud by abuse of position (s.4). Employer should report to Action Fraud and consider internal disciplinary proceedings.
Receiving money from unknown source
Could constitute money laundering under POCA 2002 if there are reasonable grounds to suspect the money is criminal property. Duty to file a Suspicious Activity Report (SAR).