The United Kingdom might make it easier for executives and senior managers to be held directly accountable for corporate crimes, including fraud and human rights abuses, under proposals put forward by the body that reviews U.K. law.

In November 2020, the U.K. government asked the Law Commission to review how to reform corporate crime laws to make it easier to prosecute companies and senior officers. The impetus was the failure in 2019 to secure fraud convictions against retailer Tesco’s former executives even after the company admitted overstating its profits as part of a deal to secure a deferred prosecution agreement with the Serious Fraud Office.

…Tom McNeill, senior associate in the business crime practice at law firm BCL Solicitors, said the proposal to widen potential prosecution from the “controlling mind” to senior management represents a “significant shift” in terms of holding corporates to account for individual wrongdoing.

But he added there are legitimate concerns over “whether it is right to make companies criminally liable for the actions of individuals, especially via a failure to prevent offense, where even conscientious organizations that have taken significant measures to prevent fraud and/or other economic crimes will find it difficult to defend themselves.”

*This article was first published by Compliance Week on 22 June 2022. If you wish to read the full article, please visit Compliance Week website.

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