City law firm urges more protection for self-reporting and incentivisation for whistleblowers ahead of anti-corruption summit
A City law firm is today urging the government to introduce better protection for companies which confess their wrongdoings, along with cash incentives for whistleblowers, ahead of a major anti-corruption summit being hosted by Prime Minister David Cameron on Thursday.
Pinsent Masons is calling on governments to provide immunity from prosecution for businesses which self-report corruption in certain limited circumstances, while companies which enter into deferred prosecution agreements (DPAs) should be given hefty discounts on penalties.
The first UK DPA, which suspends criminal proceedings against a company provided it meets certain conditions, was approved in a case against ICBC Standard Bank – or Standard Bank, as it used to be known – in November 2015.
Under the DPA, the bank paid penalties of $32.2m (£22.3m) in total and agreed to continue to cooperating with the Serious Fraud Office.
Meanwhile, whistleblowers should be incentivised in cash, with the law firm suggesting that such a policy could be paid for out of fines and penalties.
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Handing out cash rewards for whistleblowing is not unheard of in other jurisdictions, with the US having an Office of the Whistleblower within its Securities and Exchange Commission. The whistleblower programme has dished out more than $57m to 26 whistleblowers since it began in 2011.
Other suggestions Pinsent Masons is putting forward include cutting down on red tape and boosting the use of technology in the systems that against money laundering, increased funding for those agencies responsible for tackling corruption and further inter-governmental cooperation.
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"In light of recent scandals, leaders need to ensure that the summit amounts to more than just a 'talking shop' and that formal, concrete policies, as well as practical steps, are agreed," said Barry Vitou, partner and head of global corporate crime at Pinsent Masons. "Measures need to break the cycle of corruption, create a level playing field for ethical businesses and really make a difference.
"It is crucial that ethical corporates who seek to compete fairly are not disadvantaged by those who seek to pay bribes to win contracts and favour."
The government website on Thursday's summit says that the meeting will aim to boost the ability "to expose, punish and drive out corruption in all walks of life" across the globe.