According to the SFO’s annual report, the independent government department is planning to reduce its spending to £45.1m ($70.1m, €64.2m) over 2015-16, from £69.1m during the previous tax year.
The UK body, which investigates and prosecutes complex fraud and corruption, opened 16 new investigations over 2014-15, a rise of four compared to 2013-14.
A total of 18 defendants were convicted during 2014-15, compared with 11 in the previous year.
The financial year just gone also saw the SFO recover £13.7m and confiscation orders totalling £26.5m.
Putting progress at risk
However, this 35% decrease in the SFO’s planned budget is a dangerous move, according to international law firm Pinsent Masons.
“The SFO’s slightly more generous budget over the last two years seems to have been bearing fruit in terms of more investigations and more convictions,” said Barry Vitou, partner and head of global corporate crime at Pinsent Masons. “The planned budget cuts for next year could put that progress at risk.”
“While they may get additional funding as a result of successful investigations, there is no guarantee as to when or if this will come.
“Without that certainty, it makes it difficult for them to commit resources to the long and detailed work of unravelling the structures that fraudsters hide behind.”
“High levels of fraud in an economy undermine business confidence. If we want to be serious about combating fraud, then the SFO needs to continue to have access to serious and sustained funding.”
Deferred prosecution agreements
The SFO also said it is considering the possibility of deferred prosecution agreements in a number of cases, a new measure which the body’s director David Green says “will make a real difference in the SFO’s dealings with cooperative corporates”.
In March this year, the SFO was hit with a fine of £180,000 after thousands of confidential documents were accidentally sent to the wrong person.
According to its annual report, the body indicated that this fine had been reduced to £144,000 due to its early payment.
