"In my view, one of the most effective ways property businesses can strengthen their position is through targeted compliance training. We’ve seen time and again that well-informed employees are a company’s strongest asset when it comes to preventing fraud"
- Scott Morris - Skillcast
The UK property sector is facing a new reality: under the Economic Crime and Corporate Transparency Act 2023 (ECCTA), failing to prevent fraud isn’t just a risk - it can be a criminal offence.
From September 2025, stricter enforcement of the Act will come into effect, meaning property businesses will be legally required to meet enhanced compliance and transparency standards. Failure to do so could result in heavy penalties, criminal charges and lasting reputational damage.
With this deadline approaching, property businesses should act now to overhaul their compliance and governance frameworks to ensure that their systems and controls are robust enough to meet higher standards of scrutiny.
Building on the momentum of the 2022 Economic Crime (Transparency and Enforcement) Act, which was fast-tracked through Parliament to tackle illicit wealth in the UK property market, the ECCTA takes corporate accountability to the next level.
This new legislation marks a significant evolution in corporate accountability. At the heart of the ECCTA is the new corporate offence of ‘failure to prevent fraud’.
It requires companies to move beyond responding to fraud and instead prevent it proactively, placing the responsibility on businesses to prove they have strong fraud prevention measures, shifting the focus from reactive compliance to active defence.
Failure to do this could result in criminal liability, fundamentally changing how property firms must approach risk and governance in the years ahead.
The fraud pandemic
When you look at the latest crime figures, it’s hard to deny that we are in the midst of a fraud pandemic. It is no longer just a headline risk - it has become a pervasive reality across the UK.
According to the latest Crime Survey for England and Wales, fraud accounts for 41% of all crime in England and Wales for the year ending September 2024, making it the most common crime by a wide margin.
This alarming scale underscores why the ECCTA’s proactive stance on fraud prevention is so vital.
In the property sector, fraud can take many forms, including money laundering through high-value property transactions, false representation of ownership or title deeds and fraudulent leasing or sales agreements.
For example, criminals might use shell companies to hide beneficial ownership or manipulate property values to launder illicit funds. Failure to prevent such fraud could result in criminal liability, fundamentally changing how property firms must approach risk and governance in the years ahead.
This means that for property firms, meeting these new demands means far more than ticking compliance boxes or submitting timely filings. It calls for a deep, organisation-wide commitment to transparency, governance and fraud risk management.
Embedding these principles into daily operations is essential not only to withstand increasing regulatory scrutiny but also to protect against the serious legal and reputational consequences the ECCTA now enforces.
High compliance, low transparency
At first glance, the property sector appears to be in a relatively strong position when compared to other industries that are also preparing for the ECCTA to come into force.
Skillcast’s ECCTA Readiness Index - based on data from 2,000 UK companies - shows that the sector performs well when it comes to filings, financial health and enforcement risk.
For example, the sector recorded the fewest total charges and had no outstanding charges at all, which is a strong indicator of low debt exposure and robust financial health.
It also reported the lowest number of compulsory strike-off actions (27), with nearly all of these later discontinued, suggesting that most were resolved without serious governance concerns.
However, when it comes to ownership transparency, the sector is falling behind. Just 26% of companies analysed listed a named Person with Significant Control (PSC), with the majority failing to disclose any individual or corporate controller.
This could be a potential concern under the ECCTA's stricter transparency requirements, which impose stricter requirements on ownership disclosure. Having a named person as PSC is crucial for ensuring accountability, enabling law enforcement and regulators to trace control and decision-making within a company.
It also helps to prevent the misuse of corporate structures for illicit activities such as money laundering or fraud, and reassures stakeholders about the legitimacy and integrity of the business.
This isn’t just a formality - it’s a legal and reputational risk. Failing to disclose key ownership details can raise red flags with regulators, partners and clients alike.
Why training is the first line of defence
In my view, one of the most effective ways property businesses can strengthen their position is through targeted compliance training. We’ve seen time and again that well-informed employees are a company’s strongest asset when it comes to preventing fraud.
Training helps staff understand legal requirements and their responsibilities, building a culture of vigilance and accountability. Empowered employees are more likely to detect and escalate issues early, preventing fraud before it happens.
To meet ECCTA demands, property businesses must invest in strategic fraud prevention training that goes beyond basic awareness. This training ensures teams can correct inaccurate PSC data while fostering transparency, accountability and resilience across the organisation.
In today’s compliance landscape, informed employees aren’t just part of the solution - they are the solution. This type of training is not optional - it’s essential.
Under the new law, regulators will be asking: “What did your company do to prevent fraud?” A documented training programme is a clear and credible answer.
What if you don’t act?
The consequences of non-compliance are severe. Companies that fail to meet ECCTA requirements risk unlimited fines, criminal prosecution and even personal liability for senior leaders.
In some cases, businesses may be struck off the Companies House register altogether.
But the damage goes beyond legal penalties. Failing to address fraud risks - or appearing opaque in your filings - can seriously undermine trust.
In property, where client relationships and investor confidence are paramount, reputational harm can be far more costly than any fine.
This is why I encourage every business in the sector to treat ECCTA compliance as a strategic priority. It is not just a legal obligation - it’s an opportunity to strengthen your governance, demonstrate leadership and build long-term resilience.
Practical steps you can take
If you’re unsure where to begin, start with a clear roadmap. Here’s what I recommend:
Clean up your Companies House records: Ensure that all PSC entries are accurate and include named individuals, not just corporate entities. Update any overdue filings or confirmation statements immediately.
Review your internal governance framework: Ask whether your fraud prevention procedures are documented, up to date and understood at every level of the business. If not, take steps to close those gaps.
Invest in regular compliance training: Make fraud prevention training a recurring part of your onboarding and professional development process. This keeps staff alert and engaged - and gives you evidence of proactive compliance.
Use analytics to identify vulnerabilities: Leverage technology to track compliance metrics, spot weak points, and monitor improvement over time. This can be invaluable during audits or investigations.
A culture shift, not a checklist
Ultimately, the ECCTA is about more than policies and procedures. It calls for a culture shift - one where compliance is embedded into daily operations, not treated as an afterthought.
I believe property firms are well-positioned to lead by example, but that will only happen if they confront the transparency gap head-on and equip their people with the tools to do the right thing.
Fraud prevention isn’t just about avoiding penalties. It’s about safeguarding your business, protecting your clients and earning the trust that sustains long-term success.
Now is the time to act. Because in the new regulatory landscape, where your business must be shown to be taking proactive action to prevent fraud, doing nothing is no longer an option.
