UK fraud office encourages firms to self-report wrongdoing

LONDON (Reuters) -Firms that self-report suspected wrongdoing to Britain's Serious Fraud Office (SFO) and co-operate with investigators will get a chance to avoid prosecution, according to guidance published by the SFO on Thursday.

The SFO, which has a remit covering complex financial crimes, fraud and corruption, said companies that flag potential breaches would be offered the chance to negotiate a Deferred Prosecution Agreement, except in exceptional circumstances.

Such agreements typically allow the accused to avoid prosecution unless they reoffend or violate other terms during the term of the agreement.

Prosecutors to suspend legal proceedings in exchange for the company agreeing to conditions such as fines, compensation payments and corporate compliance programmes.

"If you have knowledge of wrongdoing, the gamble of keeping this to yourself has never been riskier," said SFO Director Nick Ephgrave.

The guidance details what the SFO will consider to be genuine cooperation, including the preservation of digital and hard copy records and early engagement with authorities.

(Reporting by William James; Editing by Cynthia Osterman)