UK regulator’s efforts to coax self-reporting fraud could fall flat, experts warn

To both clean up corporate behaviour and rack up its own enforcement record, the UK’s anti-bribery agency has seemingly largely guaranteed companies a pass from prosecution if they spill the beans on their misconduct. There’s only one problem: experts believe businesses may still stand a better outcome if they front it out rather than self-report and hope for a deal. The idea that some companies might now be tempted to hide bribery and fraud offences rather than reveal them jars somewhat with the spirit of compliance that the new regime is trying to foster. 

For the past eleven years, the Serious Fraud Office (SFO) has tried to entice companies to tell all in return for the offer of a deferred prosecution agreement (DPA). Such agreements have the advantage of bringing a halt to criminal proceedings, and they don’t prevent companies from bidding for public sector contracts. They also help the SFO better manage its caseload and jack up its enforcement record.