ENGLAND & WALES Law and Practice Contributed by: John Kaye and Piers Desser, Carson Kaye
cessor liability may arise in asset or share acquisi - tions, depending on structure and regulatory context. 5.2 Compliance Programmes English law does not impose a universal duty on all companies to maintain financial crime compliance programmes. However, regulated firms must do so under the UK regulatory framework, and all compa - nies are strongly expected to adopt proportionate pro - cedures to prevent offences such as bribery and the facilitation of tax evasion. An effective compliance programme can provide a full defence to certain strict liability offences (for example, “adequate procedures” under the Bribery Act). More broadly, robust compliance is a significant miti - gating factor in charging decisions, DPAs and sen - tencing, particularly where it demonstrates genuine prevention efforts and prompt remediation. 5.3 Defences and Exceptions General criminal law defences apply to financial crime offences in England and Wales. These include lack of the required mental element (dishonesty or knowl - edge), mistake, duress, and, in limited cases, entrap - ment as an abuse of process. For corporate offences, a key defence is the existence of “adequate procedures” or “reasonable prevention procedures” under statutes such as the Bribery Act 2010 and the Criminal Finances Act 2017. In money laundering cases, a person may rely on having made an authorised disclosure and obtained appropriate consent from a relevant authority. There are generally no broad de minimis thresholds for financial crime. However, risk-based approaches operate in practice, particularly under anti-money laundering regimes where simplified due diligence may be permitted in lower-risk scenarios. Sector-specific exemptions exist, for example for cer - tain regulated activities or where conduct falls within statutory carve-outs. Safe harbours are limited but can arise through compliance with regulatory guid -
ance, authorised disclosures, or specific statutory defences. Overall, the availability of defences is fact-sensitive and closely tied to the adequacy of compliance frame - works and contemporaneous decision-making. 5.4 Whistle-Blower Protection Existing law provides a framework for whistle-blower protection, primarily under the Public Interest Disclo - sure Act 1998. Workers who make qualifying disclo - sures about financial crime are protected from dis - missal or detriment, provided the report is made in the public interest and through appropriate channels. Regulators such as the FCA encourage reporting and operate dedicated whistle-blowing teams. While there are limited direct financial incentives in the UK, co-operation may be recognised in enforcement outcomes. Anonymous reporting is generally avail - able through internal hotlines and external channels, although anonymity can limit follow-up and the scope of legal protections in practice.
6. Resolutions, Sanctions and Remedies
6.1 Prosecution and Resolution Mechanisms Financial crime cases in England and Wales are resolved through a range of mechanisms, depending on seriousness, evidence and public interest. The most serious matters are prosecuted in the crimi - nal courts by authorities such as the SFO and the CPS. Defendants may plead guilty at an early stage to secure sentencing credit, or contest the charges at trial. For corporate entities, DPAs are a key tool. Intro - duced under the Crime and Courts Act 2013, DPAs allow prosecution to be suspended subject to judi - cial approval and compliance with conditions such as financial penalties, remediation and ongoing co-oper - ation. Breach can revive prosecution. Non-prosecu - tion agreements are not formally recognised in the UK.
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