The Serious Fraud Office (SFO) has published new ‘corporate co-operation guidance’, aimed at encouraging and making it simpler for corporates to report wrongdoing.

The key message from the new guidance is that if a corporate self-reports promptly to the SFO and co-operates fully, it can be expected (unless exceptional circumstances apply) to be invited to negotiate a Deferred Prosecution Agreement (DPA) rather than be prosecuted.

The Guidance expands upon what this means in practice, setting out how and when to self-report, and what ‘genuine co-operation’ looks like. For example, it makes clear that corporates are not expected to investigate matters fully before self-reporting, and that reports should be made directly to the Intelligence Division of the SFO.

As for what constitutes genuine co-operation, the Guidance states that merely having self-reported will not be sufficient: a corporate must “go on to provide genuine co-operation to be eligible to be invited to negotiate a DPA”.

The types of behaviour that will be indicative of genuine co-operation include (i) collecting and identifying documents and information likely to be relevant to the investigation, (ii) promptly preserving all digital and hard copy material likely to be relevant, and (iii) providing access to employees should the SFO want to conduct any interviews. Conversely, employing delaying tactics, withholding information, overloading the SFO with large amounts of irrelevant material, or “seeking to exploit differences between international law enforcement agencies or legal systems” will be viewed by the SFO as being uncooperative.

In terms of timeframes, the SFO states that it will contact a corporate within 48 hours of its self-reporting, and decide whether to open an investigation within six months. DPA negotiations are equally expected to be concluded within six months of the SFO sending a corporate an invitation.

Commenting on the new guidance, Nick Ephgrave, Director of the SFO, said, “we are determined to lead the fight against serious and complex fraud, bribery and corruption at home and side by side with international partners. Our new guidance sets out how corporates can report suspected criminality to us and what we expect from cooperating corporates. If you have knowledge of wrongdoing, the gamble of keeping this to yourself has never been riskier.”

To read the Guidance in full, click here.