New law extends corporate criminal liability

The Crime and Policing Act 2026 received Royal Assent yesterday, marking a significant shift in corporate criminal liability within the UK. Caroline Day, a partner in the Criminal Litigation team at Kingsley Napley, noted, “The Crime and Policing Bill is now on the statute books as the Crime and Policing Act 2026. It introduces a further, transformative expansion of corporate criminal liability in the UK, so that companies may be held criminally liable for a wider range of crimes committed by a 'senior manager' acting with corporate authority."

Previously, the framework under the Economic Crime Corporate Transparency Act 2023 (ECCTA) limited corporate liability strictly to economic crimes. However, this new Act broadens the scope significantly, applying the senior manager test to all types of crimes. Day elaborated on the implications of this change, stating, “When in force the amendment will make it significantly simpler for prosecutors to hold corporates to account for a wide range of crimes committed by their senior personnel.”

In light of these changes, Day emphasised the necessity for companies to proactively manage the risks introduced by the expanded corporate liability. She advised that companies undertake audits of existing policies and procedures related to potential business risks. This includes reviewing individuals who may fulfil the 'senior manager' role as defined under the new legislation. Enhanced training and thorough examinations of whistleblowing protocols are also essential, ensuring that any concerns raised can be addressed appropriately, thereby safeguarding both the organisation and its compliance with the new legal framework.