The Ministry of Justice has today announced a new measure intended to help prosecutors tackle incidents of bribery and corruption, called Deferred Prosecution Agreements ("DPAs"). We wrote in May earlier this year that the Ministry of Justice had launched a public consultation to see if there was public support for such a measure.
There was strong support for the proposals in the consultation, with 86% of respondents agreeing that Deferred Prosecution Agreements have the potential to improve the way that economic crime committed by organisations is dealt with. The Ministry of Justice have clarified that DPAs can now be made between a prosecutor and an organisation to defer prosecution for alleged economic wrongdoing as long as stringent conditions are met including making amends to victims, paying fines and reform of practices.
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 financial 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.
Announcing the new tool in the enforcer's tool kit, Justice Minister Damian Green said that DPAs will ensure that: "more unacceptable corporate behaviour is dealt with including through substantial penalties, proper reparation to victims, and measures to prevent future wrongdoing."
The Serious Fraud Office ("SFO") has cleared the way for the DPA announcement, removing its previous guidance in relation to self-reporting incidents of corruption within an organisation. It must be remembered however that DPAs will only function as an additional tool for prosecutors. The SFO has set out its stall and last week re-stated that "if on the evidence there is a realistic prospect of conviction, the SFO will prosecute if it is in the public interest to do so". It further said that "self-reporting is no guarantee that a prosecution will not follow. Each case will turn on its own facts."
It should be noted that the Ministry of Justice has clarified that the new DPA regime would only be affective in England and Wales, although it has previously stated that it would hold talks with the devolved administrations in Scotland and Northern Ireland in an attempt to implement the proposals in those countries also.
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