Deferred Prosecution Agreement

Tuesday 1st December 2015 Written Statements

[The Attorney General (Jeremy Wright)]

Yesterday the Serious Fraud Office (SFO) entered into a deferred prosecution agreement (DPA) with Standard Bank Plc (now known as ICBC Standard Bank Plc) in accordance with section 45 and schedule 17 of the Crime and Courts Act 2013. This was the first time that this new power has been used by a prosecuting authority since the provision came into force on 24 February 2014. The indictment deferred by this agreement comprises a charge under section 7 of the Bribery Act 2010—corporate failure to prevent bribery—the first time this section of that legislation has been charged.

Corporate economic crime damages the British economy in monetary and reputational terms. Since May 2010, we have made structural changes to improve our strategic capability, including introducing deferred prosecution agreements in February 2014. The Government recognised the need for this additional and much-needed weapon in the prosecution’s armoury to provide the flexibility to secure appropriate penalties and better outcomes for victims. Yesterday’s agreement has resulted in the imposition of a multi-million pound penalty, payable to the Treasury. The DPA goes much further than just addressing the financial impact of the offending. It also regulates the future behaviour of the company, compelling Standard Bank to pay for and submit to an independent review of safeguards put in place to prevent future offending.

A DPA is where an agreement is reached between a designated prosecutor, in this case the SFO, and an organisation facing prosecution for certain economic or financial offences. The effect of such an agreement is that proceedings are instituted by a bill of indictment but then deferred on specific terms such as the payment of a financial penalty, compensation, disgorgement of profit along with implementation of a compliance programme, co-operation with the investigation and payment of costs. There are several stages to the process which include both a private and public hearing before a member of the senior judiciary. If the terms of a DPA and statement of facts is agreed between the parties, and approved by the judge, a declaration that a DPA is in the interests of justice and that its terms are fair, reasonable and proportionate must be given in public. Lord Justice Leveson delivered such a declaration in his judgment of 30 November 2015. Details of this particular DPA and the judgment have been published on the website of the SFO. Should the company not adhere to the terms of the agreement the SFO has the ability to prosecute the company.

[HCWS344]