Expert Guide to Mandatory Reporting of Criminal Offences

Corporate crimes ¹  - such as bribery, fraud, tax evasion, money laundering, workplace injuries etc. - pose significant legal and reputational risks for businesses. One of the most pressing challenges for companies is determining whether they are legally required to report these offences to the relevant authorities and understanding the potential consequences of their decisions.

The issue becomes even more complex when considering the consequences of not reporting a criminal offence as required by law, as well as potential risks involved in reporting it. Critical considerations include identifying who in the company is responsible for reporting the offence, the proper channels to report it, the timescale for doing so (if any) and to the risks of any accessory criminal liability.

Corporate criminal acts represent significant strategic and operational risks, impacting both the organisation and its leadership. In recent years, there has been a growing trend of prosecuting corporations for criminal conduct carried out by their management or employees. This shift in the legal landscape presents risks for organisations of all sizes, from multinational corporations to small businesses.

This analysis is intended to provide first aid practical and concise answers to common questions faced by companies when criminal offences are committed:

1. Which criminal offences are legally required to be reported?
2. Who in the company is responsible for reporting the offence, and to whom should the offence be reported?
3. What are the risks of failing to report a criminal offence or its perpetrator?
4. What are the risks of reporting a criminal offence?
5. Is there a risk of accessory criminal liability for the company/individuals within the company?

By analysing different regulatory frameworks, we aim to equip C-suite executives, compliance teams, and legal professionals with the knowledge they need to effectively manage these challenges.

For tailored advice on managing reporting obligations, conducting internal investigations, or addressing potential proceedings, companies are encouraged to consult with legal counsel. Proactively seeking expert guidance can be critical in mitigating risks and protecting your business in an increasingly complex regulatory environment.