UK's Serious Fraud Office Secures First Deferred Prosecution Agreement

On 30 November 2015, Lord Justice Leveson formally approved the UK's first deferred prosecution agreement ("DPA") since the legislative scheme for such arrangements came into force on 24 February 2014. The introduction of DPAs was seen as a landmark moment in the SFO's capacity to pursue corporate wrongdoing effectively.

This first DPA is between the Serious Fraud Office ("SFO") and ICBC Standard Bank ("ICBC") and relates to an offence of failing to prevent bribery, contrary to section 7 of the Bribery Act 2010. Under the agreement, ICBC is required to pay a financial penalty of $16.8 million, as well as disgorgement, compensation and costs.

The Conduct

The SFO alleged that Standard Bank (purchased by ICBC in February 2015), between 1 June 2012 and 31 March 2013, failed to prevent persons associated with it from committing bribery, contrary to section 7 of the Bribery Act 2010. The misconduct arose from the Government of Tanzania's attempt to raise public funds