On July 21 2009 the UK’s Serious Fraud Office (SFO) issued written guidance to the corporate sector setting out the approach it will take in dealing with overseas corruption, and in particular the manner in which companies that self report can expect to be dealt with. In part at least the guidance has its genesis in the groundbreaking Balfour Beatty settlement reached in October 2008. Key Points
The guidance gives detail as to how to approach the SFO, how the investigation will proceed, the nature of any settlement discussions and the possibility of global settlement.
Central to the guidance is the need to satisfy the SFO that the company can demonstrate the following fundamental requirements:
- It is genuinely committed to moving to a better corporate culture
- It will work with the SFO in any necessary investigation
- It will be prepared to discuss all forms of resolution including action against individuals and external monitoring
- That any resolution will satisfy the public interest and that the company will work with foreign enforcement agencies to reach a global settlement.
Comment
The guidance makes plain that even if these issues are present, if Board members have participated in corrupt activity it is likely that criminal prosecution will follow. The UK remains under scrutiny over its record on tackling corruption, and the SFO is therefore under pressure to produce results. As such it clearly wants to use the guidance to avoid the need for protracted, and costly, investigations.
The full SFO guidance is available on the SFO website:
http://www.sfo.gov.uk/news/downloads/SFO-COP-dealing-with-overseas-corruption.pdf
Jeremy Summers is a Partner in the Business and Regulatory investigations Team at Russell Jones & Walker Solicitors 0207 657 1786 j.summers@rjw.co.uk
