UK Firms Urged to Self-Report Wrongdoing to Avoid Prosecution

UK firms suspecting wrongdoing are encouraged to self-report to Britain's Serious Fraud Office to potentially avoid prosecution via Deferred Prosecution Agreements. The SFO emphasizes genuine cooperation, but law firms express mixed sentiments, highlighting ongoing dilemmas faced by companies in deciding whether to self-report or wait for SFO discovery.

Britain's Serious Fraud Office (SFO) has issued new guidance urging companies to self-report suspected wrongdoing to potentially avoid prosecution. By cooperating with investigators, firms may negotiate a Deferred Prosecution Agreement (DPA), sparing them from charges unless they reoffend. The SFO seeks to enhance transparency and compliance within businesses.

The guidance outlines the SFO's expectations for genuine cooperation, including preserving records and engaging early with authorities. However, reception from law firms remains mixed. Some caution companies against concealing issues, while others suggest a pragmatic approach if wrongdoing is uncovered by the SFO.

While the SFO's push for early self-reporting aims to encourage corporate compliance, questions persist about what circumstances might prevent DPA negotiations. Legal experts debate whether a stricter stance on non-self-reporting could reshape corporate decision-making and foster a more proactive approach to addressing internal fraud.

(With inputs from agencies.)