The government hopes that DPAs will encourage companies to self-report corporate crime, in exchange for immunity from prosecution as long as they comply with certain penalties, such as fines, the reparation of victims and implementing measures to prevent future wrongdoing. Consultations on the proposals end tomorrow, with legislation expected next year.
Principle v practice
Although praising the principle behind the proposals, London-headquartered international law firm Pinsent Masons raised doubt over their practical effectiveness. Notably, it claims DPAs do not guarantee companies protection from prosecution in other countries even if they meet all requirements.
Pinsent partner and head of the firm’s corporate crime team, Barry Vitou, commented: ‘The government’s proposals have a blind spot when it comes to cases involving multiple jurisdictions. Unless this is corrected, the initiative might fall apart.’ He added that companies will be reluctant to admit wrongdoing under a scheme that could still see them face charges in other countries.
UK variances
The proposals are equally unclear regarding overlaps in jurisdiction within the UK, with it being possible that Scottish or Northern Irish bodies could bring charges against companies protected by an English DPA. Mr Vitou said: ‘DPAs should ideally be UK wide with similar regimes operating in England, Wales, Northern Ireland and Scotland.’
Pinsent Masons also highlighted the need for greater funding for the Serious Fraud Office to provide the strong enforcement necessary to support the incentivised self-reporting offered by DPAs.
However, Mr Vitou concluded that once those core issues are addressed, DPAs could become a ‘key part of the UK’s fight against corporate crime’.
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