THE IDENTIFICATION PRINCIPLE OBSTACLE TO FINANCIAL CRIME ENFORCEMENT IN THE UK

On 30 January, Mayer Brown published an article about what it describes as a structural legal impediment that underlies failures to successfully prosecute corporate financial crime offences: the identification principle.  The English law ‘identification principle’ requires that the ‘directing mind and will’ of an organisation be responsible for a crime in order for the organisation itself to be prosecuted.  As that directing mind and will is typically limited to directors and executive officers: individuals who rarely are involved in the day-to-day decisions in which financial crime-related offences have their origin – making it is easier for prosecutors to convict a small company, whose executives are more likely to be involved in everyday business decisions, than a large one.

https://www.mondaq.com/Article/888520

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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