SFO focus signals greater corruption enforcement risk in the UK

The case was led by the National Crime Agency (NCA), underlining how UK corruption cases are increasingly being investigated by a range of law enforcement agencies. It could set the tone for a more rapid results-driven approach by UK law enforcement where evidence gathering allows.

The case brought by the NCA involved bribe solicitation self-reported by a mining company. This was followed by use of surveillance and other tools deployed by law enforcement to gather evidence over a short period – these are statutory powers less regularly seen in UK financial crime cases and more typical of how agencies have traditionally tackled the fight against organised crime groups. The government official was arrested when they travelled to the UK – the case took less than six months from the time of arrest to the conviction. 

Primary responsibility to investigate and prosecute complex fraud, bribery and corruption in the UK sits with the Serious Fraud Office (SFO), an agency that has faced challenges in recent years. However, the recent change of leadership at the SFO could mark a clear change of approach, including increased cooperation with other law enforcement agencies like the NCA.

In October last year, Nick Ephgrave was appointed as the new director of the SFO. His appointment marks a clear departure from the past as all the previous directors were lawyers. Ephgrave made this point in his first speech as director earlier this month: “Unlike all my predecessors, I am not a lawyer, rather I am a law enforcer.” Ephgrave is a former police officer and held some of the most senior positions in the Metropolitan Police (Met). His background makes him unique and could be the secret to unlocking success for the SFO.

Ephgrave would have built a network of relationships with senior officers across multiple agencies during his life-long career in law enforcement. His ability to tap into and coordinate multi-agency activity is unprecedented for an SFO director. The SFO has already collaborated with the Met and NCA on cases in the four months for which he has been in charge.

Ephgrave’s further intentions for the SFO are clear. He wants it to be “faster”, “bolder”, “more pragmatic” and “more proactive”. The new director is clearly results-driven and willing to make changes. He indicated that the SFO would not be “afraid to shut down investigations” so that it could redirect resources to where it is more likely they will get perpetrators “in front of a jury”.

The shifts towards modelling traditional law enforcement is illustrated by the following statement in Ephgrave’s speech: “This means more dawn raids and swifter action – we have already gone through more front doors in the last three months than in the last three years. Why? This provides momentum to the investigation, it gets people in an interview room, you look them in the eye and start asking questions, put them under some pressure, search the house, crack the evidence, why wait?”

Bribery and corruption risk is not something new for UK companies, particularly those that operate overseas business and in challenging sectors like mining. What is new is the leadership of the SFO and signalled change of approach. Ephgrave could be the catalyst who is able to unlock the vast potential of UK enforcement agencies when working together to investigate and prosecute corruption. UK-linked companies will need to be careful to avoid getting caught-up in corrupt schemes or they may find Ephgrave and his officers coming through their doors. It has never been more important for companies to take proactive steps to prevent corruption and implement adequate procedures.