Member Article

New plans to tackle economic crime

Plans to tackle economic crime have been published by Solicitor General Edward Garnier QC, and Justice Minister Crispin Blunt.

Under the Deferred Prosecution Agreements, companies would agree to publically admit wrongdoing, and meet new conditions such as payment of substantial penalties, undertaking internal reform and submitting to regular review and monitoring.

The process would be overseen by a judge, and the threat of full prosecution would remain, if the company should fail to comply with the agreement.

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.

DPAs would be available for prosecutors to use alongside existing methods, providing flexibility to secure appropriate penalties for wrongdoing.

It is an agreement between a prosecutor and a commercial organisation that in return for complying with a range of conditions, the prosecutor would defer a criminal prosecution.

An independent judge would oversee the development of the agreement to ensure it is fair, in the public interest and that conditions properly reflect the nature of the wrongdoing, including the reparation made to victims.

If, at the end of the deferral period, the prosecutor is satisfied the organisation has fulfilled its obligations, there is no prosecution on the charges laid.

However, if the commercial organisation fails to meet its obligations, further penalties are available and the original proceedings could be revived.

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.”

This was posted in Bdaily's Members' News section by Tom Keighley .