SFO outlines path for companies to evade legal action

Today, the Serious Fraud Office (SFO) unveiled new guidance, which for the first time indicates that companies self-reporting suspected misconduct and fully cooperating with investigators may be invited to negotiate a Deferred Prosecution Agreement (DPA) instead of facing prosecution, unless there are exceptional circumstances.

During a legal conference in London, SFO Director Nick Ephgrave presented the new corporate cooperation guidelines, aimed at facilitating a more direct reporting process for companies to the SFO’s Intelligence Division via a secure reporting portal.

The guidance offers clearer definitions of what constitutes ‘genuine cooperation’ according to the SFO, such as maintaining digital and physical records, accurately representing the facts related to alleged criminal activities, and engaging early with the SFO during any internal investigation. Additionally, it includes examples of behaviors considered uncooperative, such as attempting to “forum shop” by inappropriately reporting offenses to another jurisdiction for strategic reasons or trying to downplay or obscure the involvement of individuals.

In exchange for self-reporting, a company can expect the SFO to:

• Reach out within 48 business hours of the self-report or initial contact.

• Make a determination on whether to initiate an investigation within six months of the self-report.

• Complete its investigation in a timely manner.

• Wrap up DPA negotiations within six months after extending an invitation.

Nick Ephgrave QPM, Director of the Serious Fraud Office, stated:

We are committed to leading the charge against serious and complex fraud, bribery, and corruption both domestically and in collaboration with international partners. Our new guidance outlines how companies can report suspected criminal activity to us and what we expect from those who cooperate.

If you are aware of wrongdoing, holding onto that information is a greater risk than ever.

The fresh guidance emerges as part of the SFO’s efforts to enhance its operational landscape to combat significant criminal activities. This includes initiatives to encourage whistleblowers, reform outdated disclosure practices, experiment with new technologies, and establish a taskforce to address international bribery and corruption alongside key allies.