UK Criminalises False Sustainability Claims By Banks

Banks in the UK face new legal exposure as false or misleading sustainability claims are now classified as a criminal offence. The rule comes under the “failure to prevent fraud” provision of the 2023 Economic Crime and Corporate Transparency Act, which took effect on September 1, 2025.

The law holds large organisations liable for fraudulent actions, not only by senior managers but also by employees and third parties acting on their behalf. According to legal experts, this expands the definition of fraud to cover greenwashing, with potential liability including fines. Enforcement authorities, such as the Serious Fraud Office and the Crown Prosecution Service, will oversee the implementation. Banks are expected to reassess how products are labelled and marketed as green or sustainable, with many likely to tighten oversight of sales practices. Non-UK banks may also fall under the law if misconduct occurs within the UK.