Schedule 17 Deferred Prosecution Agreements: Understanding What They Are and How They Work
Deferred Prosecution Agreements (DPAs) have been a prominent feature of corporate law enforcement in the UK since their introduction in 2014. DPAs allow prosecutors to suspend criminal proceedings against a company for a set period of time in exchange for certain conditions being met.
Schedule 17 of the Crime and Courts Act 2013 introduced DPAs in the UK. This legislation provides the legal framework for DPAs and sets out the terms and conditions under which they can be agreed upon.
Schedule 17 DPAs are typically used in cases of corporate criminality. They are a way for businesses to avoid prosecution and criminal sanctions, while at the same time accepting responsibility for their actions and taking steps to prevent a recurrence.
How Do Schedule 17 DPAs Work?
Schedule 17 DPAs follow a structured process. The process begins with negotiations between the prosecution and the company, where the terms of the DPA are agreed upon. Once the terms are agreed, the DPA is presented to a judge for approval.
The terms of the DPA can vary depending on the specific circumstances of the case. However, the following are key elements that might be included:
1. Admission of guilt – The company must admit to the criminal offence for which they are being investigated.
2. Financial penalty – The company must pay a financial penalty, which can include disgorgement of profits and payment of investigative costs.
3. Compliance monitoring – The company must submit to an independent monitor, who will ensure that the terms of the DPA are being met.
4. Cooperation – The company must cooperate fully with the investigation and any subsequent proceedings.
5. Remediation – The company must take steps to prevent a recurrence of the criminal conduct.
If the company fulfils all of the conditions of the DPA, the charges against them will be dropped. However, if they breach any of the terms, they will be prosecuted and face all the consequences that come with a criminal conviction.
Benefits of Schedule 17 DPAs
Schedule 17 DPAs provide a number of benefits to companies facing prosecution, including:
1. Avoiding criminal conviction – By agreeing to a DPA, companies can avoid the negative impact of a criminal conviction, which can include financial penalties, reputational damage, and loss of business.
2. Certainty of outcome – DPAs provide companies with a clear understanding of the outcome of their case, allowing them to plan and prepare for the future.
3. Flexibility – The terms of a DPA can be tailored to the specific circumstances of the case, allowing for a more flexible approach than a criminal trial.
4. Collaboration – DPAs incentivize companies to cooperate with investigators, which can lead to more efficient and effective investigations.
In conclusion, Schedule 17 DPAs are an effective tool for combating corporate criminality while minimizing the negative impact on companies. By understanding how they work and the benefits they provide, companies can make informed decisions about whether a DPA is the best course of action for them.