REFORMING CORPORATE CRIMINAL LIABILITY IN THE UK: WHERE ARE WE NOW?
The UK government estimates that financial crime costs the UK at least £37bn each year. Fraud is the most commonly experienced crime in the UK. The UK has experienced an exponential rise in cyber and cryptocurrency related frauds, along with significant criminality relating to the coronavirus (COVID-19) pandemic, such as the illegal use of bounce back loans and furlough payments.
In response, there is an ongoing assessment of the UK’s current regime on corporate criminal liability, focused on what more can be done to improve its effectiveness and secure greater numbers of prosecutions.
Following on from the recent Law Commission consultation, this article explores potential routes for reform, including by way of comparison to three other jurisdictions and their recent developments in this area.
Background
Criminal liability for corporate crime is important in seeking to counter the vast costs of such activity. The backdrop of the 2008 financial crisis demonstrated that more needed to be done to secure greater accountability for failings in financial systems.
In terms of establishing corporate criminal liability generally, the ‘directing mind and will’ of the company is sought to be identified and proven guilty (known as the ‘identification doctrine’). Such individuals are likely to be board members or other senior managers, however in larger institutions it has proved challenging to successfully link the offending conduct with those involved and hence this has provided momentum to consider alternatives.
Jan-Mar 2022 issue
RPC