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Legal Minds

3 September 2014 / by / in ,

Corporates Beware

Corporates Beware: Economic crime incorporates a wide range of unlawful activity and the Government is looking to make corporates liable if they disregard the risks of being involved in economic crime.

In the Attorney General’s keynote address to the Cambridge International Symposium on Economic Crime on the 2 September 2014, he stated that ‘Government officials are considering proposals for the creation of an offence of a corporate failure to prevent economic crime, modelled on the Bribery Act section 7 offence.’ In other words businesses could be held criminally liable for not preventing various forms of economic crime if they do not have in place adequate procedures to prevent the crime.

Economic crime is a global phenomenon with a broad definition encompassing many types of frauds including asset misappropriation, false accounting, bribery and corruption, insider dealing, tax fraud and IP infringements to name a few. If the offence of failing to prevent an economic crime is created, businesses will have to increase and tighten compliance procedures to protect themselves in the future from being investigated by the Serious Fraud Office.

Cindy Dorrington

Cindy specialises in regulatory investigations and enforcement, White Collar and Business Crime. Cindy is an experienced practitioner who advises on a wide range of white collar crime and financial services regulatory matters. She has acted for both individuals and companies in investigations and proceedings brought by the Serious Fraud Office (SFO), The Financial Conduct Authority (FCA), the Crown Prosecution Service (CPS), the National Crime Agency (NCA), HM Revenue and Customs (HMRC) and other prosecuting bodies.