U.K. Likely to Adopt Deferred Prosecution Agreements to Settle Egregious Compliance Violations

By Vanya Dragomanovich

The United Kingdom could begin using a powerful prosecutorial tool as early as next year in investigations of financial institutions suspected of facilitating money laundering and sanctions violations. The U.K.'s Ministry of Justice said that it will wind up a consultation period in August on the potential use of deferred prosecution agreements (DPAs), a type of settlement regularly used in the United States to pressure banks and other businesses to remedy potential criminal violations. Under the agreements, banks typically pay large settlements and agree to specific compliance deadlines to avoid criminal prosecution. Following the subsequent ministry report on the plan,...