OECD Deferred Prosecution Agreements: What You Need to Know

The Organisation for Economic Co-operation and Development (OECD) has introduced deferred prosecution agreements (DPAs) as a way of resolving cases of bribery and corruption. DPAs are essentially agreements between prosecutors and corporations, where the latter acknowledges the wrongdoing and agrees to take remedial measures to avoid prosecution.

In the context of the OECD, DPAs are meant to be an alternative to prosecution in cases of foreign bribery. A DPA allows corporations to avoid full criminal prosecution by agreeing to pay a fine and implement measures to prevent future offenses. The main benefit of a DPA is that it helps companies avoid the negative consequences of a full prosecution, such as reputational damage and lengthy court cases.

DPAs have been used in other countries, such as the United States and the United Kingdom, as a tool for fighting corruption. However, the introduction of DPAs in the OECD is relatively new and is intended to encourage greater international cooperation in combating bribery.

The OECD`s Working Group on Bribery has published guidelines on DPAs, which are meant to provide a clear understanding of the process and help parties involved navigate the agreement. One of the key features of a DPA is that it must be approved by a judge or other independent entity to ensure transparency and fairness.

There are several benefits to DPAs, both for companies and prosecutors. From the perspective of corporations, a DPA can help avoid costly legal fees, potential conviction and a criminal record. On the other hand, prosecutors benefit from the opportunity to hold companies accountable for wrongdoing and ensure that appropriate remedial measures are taken.

Although DPAs are still relatively new in the OECD, they have already been used in several cases. In 2018, for example, the French company Société Générale agreed to pay $1.3 billion to resolve allegations of bribery and corruption in Libya, while the Dutch multinational company SBM Offshore agreed to pay $238 million to settle claims of bribery in Brazil.

Overall, DPAs represent an important tool in the fight against corruption and bribery. Despite some criticism that they may let companies off too easily, they offer a chance for corporations to take responsibility for wrongdoing and make genuine efforts to prevent future offenses. As such, they are likely to continue to be an important feature of international efforts to combat corruption in the years ahead.