New plans to tackle economic crime committed by companies were published today, as part of a consultation process by the Ministry of Justice.
We have previously written about the UK wide self reporting initiative (please see previous e-update) whereby businesses can self-disclose incidents of bribery and corruption, in return for more favourable treatment by the investigating authorities. However the proposed Deferred Prosecution Agreements ("DPAs") would mean that the process is more certain with the corporate entity having the benefit of greater clarity as to process and outcome.
Solicitor General Garnier QC and Justice Minister Blunt announced the consultation process on the DPAs today. DPAs mirror similar initiatives in the US whereby companies publically admit to economic crimes such as bribery and corruption and meet tough sanctions including "payment of substantial penalties, undertaking internal reform and submitting to regular review and monitoring". If companies meet these stringent requirements there is no further prosecution, however if they breach the terms of the agreement the authorities can proceed to full prosecution for the economic crimes within the organisation. The whole process is to be overseen by a judge to ensure it is fair, in the public interest and in the interests of justice.
The consultation process recognises that there is a need to develop new tools for prosecutors in order to give them flexibility in fighting crime while creating a more certain landscape for companies who discover internal wrongdoing but are were previously unsure of the outcome of any self-report made to the authorities.
In the press release Justice Minister Crispin Blunt said:
'Law enforcement agencies have told us that they do not have the tools they need to tackle increasingly complex economic crimes. Investigations can take several years and cost millions of pounds, with no guarantee of success, which means victims wait far too long for reparation. Or indeed receive no payback at all.
'More clearly needs to be done. Deferred Prosecution Agreements will give prosecutors extra tools to tackle this type of crime and bring about a just outcome - which punishes the wrongdoer, ensures the surrendering of any proceeds and makes amends to victims.'
Solicitor General Edward Garnier QC said:
'If we can encourage companies to self-report and come clean, pay penalties and mend their ways, the time and expense of investigations and prosecutions will be better spent elsewhere, enabling us to bring more individuals and companies to justice.
'An important aim of any DPA system would be to allow investigators and prosecutors to focus resources on those cases where a prosecution is in the public interest - and there will always be some where it is the only option.'
The consultation is open today 17th May 2012 and is expected to close on 9th August 2012.
MacRoberts will be taking part in the consultation process and are very keen to hear from interested parties and clients in order that we can reflect your feedback as part of the consultation process.
The full consultation can be found here.
Disclaimer
The material contained in this article is of the nature of general comment only and does not give advice on any particular matter. Recipients should not act on the basis of the information in this e-update without taking appropriate professional advice upon their own particular circumstances.
