DEFINITIVE GUIDELINE
Fraud, Bribery and
Money Laundering
Oences
Definitive Guideline
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
Contents
Applicability of guideline 4
Fraud 5
Fraud by false representation, fraud by failing to disclose
information, fraud by abuse of position
Fraud Act 2006 (section 1)
Conspiracy to defraud
Common law
False accounting
Theft Act 1968 (section 17)
Possessing, making or supplying articles for use in fraud
13
Possession of articles for use in frauds
Fraud Act 2006 (section 6)
Making or supplying articles for use in frauds
Fraud Act 2006 (section 7)
Revenue fraud
19
Fraud
Conspiracy to defraud (common law)
Fraud Act 2006 (section 1)
False accounting
Theft Act 1968 (section 17)
Fraudulent evasion of VAT; False statement for VAT purposes;
Conduct amounting to an oence
Value Added Tax Act 1994 (section 72)
Fraud, Bribery and Money Laundering Offences Definitive Guideline 1
Eective from 1 October 2014
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
Fraudulent evasion of income tax
Taxes Management Act 1970 (section 106A)
Fraudulent evasion of excise duty; Improper importation of goods
Customs and Excise Management Act 1979
(sections 50, 170 and 170B)
Fraud
Cheat the public revenue (common law)
Benefit fraud
27
Dishonest representations for obtaining benefit etc
Social Security Administration Act 1992 (section 111A)
Tax Credit fraud
Tax Credits Act 2002 (section 35)
False accounting
Theft Act 1968 (section 17)
False representations for obtaining benefit etc
Social Security Administration Act 1992 (section 112)
Fraud by false representation, fraud by failing to disclose information,
fraud by abuse of position
Fraud Act 2006 (section 1)
Conspiracy to defraud
Common law
Money laundering
35
Concealing/disguising/converting/transferring/removing criminal
property from England & Wales
Proceeds of Crime Act 2002 (section 327)
Entering into arrangements concerning criminal property
Proceeds of Crime Act 2002 (section 328)
Acquisition, use and possession of criminal property
Proceeds of Crime Act 2002 (section 329)
2 Fraud, Bribery and Money Laundering Offences Definitive Guideline
Eective from 1 October 2014
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
Bribery 41
Bribing another person
Bribery Act 2010 (section 1)
Being bribed
Bribery Act 2010 (section 2)
Bribery of foreign public ocials
Bribery Act 2010 (section 6)
Corporate Oenders
47
Fraud
Conspiracy to defraud (common law)
Cheat the public revenue (common law)
Fraud Act 2006 (sections 1, 6 and 7)
Theft Act 1968 (section 17)
Value Added Tax Act 1994 (section 72)
Customs and Excise Management Act 1979 (section 170)
Bribery
Bribery Act 2010 (sections 1, 2, 6 and 7)
Money laundering
Proceeds of Crime Act 2002 (sections 327, 328, 329)
Annex: Fine bands and community orders
54
© Crown copyright 2014
You may re-use this information (not including logos) free of charge in any format or medium, under the terms of the
Open Government Licence. To view this licence, visit www.nationalarchives.gov.uk/doc/open-government-licence/
or email: psi@nationalarchives.gsi.gov.uk
Fraud, Bribery and Money Laundering Offences Definitive Guideline 3
Eective from 1 October 2014
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
4 Fraud, Bribery and Money Laundering Offences Definitive Guideline
Eective from 1 October 2014
I
n accordance with section 120 of the Coroners
and Justice Act 2009, the Sentencing Council
issues this denitive guideline. It applies to
all individual oenders aged 18 and older and
to organisations who are sentenced on or aer
1 October 2014, regardless of the date of the
oence.
Section 125(1) of the Coroners and Justice Act 2009
provides that when sentencing oences committed
aer 6 April 2010:
“Every court –
(a) must, in sentencing an oender, follow any
sentencing guideline which is relevant to the
oender’s case, and
(b) must, in exercising any other function relating
to the sentencing of oenders, follow any
sentencing guidelines which are relevant to the
exercise of the function,
unless the court is satised that it would be
contrary to the interests of justice to do so.”
This guideline applies only to individual oenders
aged 18 and older or organisations. General
principles to be considered in the sentencing of
youths are in the Sentencing Guidelines Council’s
denitive guideline, Overarching Principles –
Sentencing Youths.
Structure, ranges and starting points
For the purposes of section 125(3)–(4) Coroners
and Justice Act 2009, the guideline species
oence ranges – the range of sentences
appropriate for each type of oence. Within each
oence, the Council has specied a number
of categories which reflect varying degrees of
seriousness. The oence range is split into category
ranges – sentences appropriate for each level
of seriousness. The Council has also identied a
starting point within each category.
Starting points dene the position within a category
range from which to start calculating the provisional
sentence. The court should consider further
features of the oence or the oender that warrant
adjustment of the sentence within the range,
including the aggravating and mitigating factors set
out at step two.
1
Starting points and ranges apply to
all oenders, whether they have pleaded guilty or
been convicted aer trial. Credit for a guilty plea is
taken into consideration only aer the appropriate
sentence has been identied.
2
Information on community orders and ne
bands is set out in the annex at page 54.
Applicability of guideline
1 Aggravating and mitigating factors are at step four in the guideline for organisations. In the guideline for organisations, having identied a provisional
sentence within the range at step four, the court is required to consider a further set of factors that may require a nal adjustment to the sentence at step ve
2 In the guideline for organisations, guilty pleas are considered at step seven; in the guidelines for individuals, guilty pleas are considered at step four
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
Fraud, Bribery and Money Laundering Offences Definitive Guideline 5
Eective from 1 October 2014
Fraud by false representation, fraud by failing to disclose information,
fraud by abuse of position
Fraud Act 2006 (section 1)
Triable either way
Conspiracy to defraud
Common law
Triable on indictment only
Maximum: 10 years’ custody
Oence range: Discharge – 8 years’ custody
False accounting
Theft Act 1968 (section 17)
Triable either way
Maximum: 7 years’ custody
Oence range: Discharge – 6 years and 6 months’ custody
FRAUD
Fraud
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
6 Fraud, Bribery and Money Laundering Offences Definitive Guideline
Eective from 1 October 2014
STEP ONE
Determining the oence category
The court should determine the oence category with reference to the tables below. In order to determine
the category the court should assess culpability and harm.
The level of culpability is determined by weighing up all the factors of the case to determine the
oender’s role and the extent to which the oending was planned and the sophistication with which it
wascarried out.
Culpability demonstrated by one or more of the following:
A – High culpability
A leading role where oending is part of a group activity
Involvement of others through pressure, influence
Abuse of position of power or trust or responsibility
Sophisticated nature of oence/signicant planning
Fraudulent activity conducted over sustained period of time
Large number of victims
Deliberately targeting victim on basis of vulnerability
B – Medium culpability
Other cases where characteristics for categories A or C are not present
A signicant role where oending is part of a group activity
C – Lesser culpability
Involved through coercion, intimidation or exploitation
Not motivated by personal gain
Peripheral role in organised fraud
Opportunistic ‘one-o’ oence; very little or no planning
Limited awareness or understanding of the extent of fraudulent activity
Where there are characteristics present which fall under dierent levels of culpability, the court
should balance these characteristics to reach a fair assessment of the oender’s culpability.
FRAUD
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
Fraud, Bribery and Money Laundering Offences Definitive Guideline 7
Eective from 1 October 2014
FRAUD
Harm is initially assessed by the actual, intended or risked loss as may arise from the oence.
The values in the table below are to be used for actual or intended loss only.
Intended loss relates to oences where circumstances prevent the actual loss that is intended to be
caused by the fraudulent activity.
Risk of loss (for instance in mortgage frauds) involves consideration of both the likelihood of harm
occurring and the extent of it if it does. Risk of loss is less serious than actual or intended loss. Where the
oence has caused risk of loss but no (or much less) actual loss the normal approach is to move down
to the corresponding point in the next category. This may not be appropriate if either the likelihood or
extent of risked loss is particularly high.
Harm A – Loss caused or intended
Category 1 £500,000 or more Starting point based on £1 million
Category 2 £100,000 – £500,000 or Risk or category 1 harm Starting point based on £300,000
Category 3 £20,000 – £100,000 or Risk of category 2 harm Starting point based on £50,000
Category 4 £5,000 – £20,000 or Risk of category 3 harm Starting point based on £12,500
Category 5 Less than £5,000 or Risk of category 4 harm Starting point based on £2,500
Risk of category 5 harm, move down the range within the category
Harm B – Victim impact demonstrated by one or more of the following:
The court should then take into account the level of harm caused to the victim(s) or others to determine
whether it warrants the sentence being moved up to the corresponding point in the next category or
further up the range of the initial category.
High impact – move up a category; if in category 1 move up the range
Serious detrimental eect on the victim whether nancial or otherwise, for example substantial damage to credit rating
Victim particularly vulnerable (due to factors including but not limited to their age, nancial circumstances, mental capacity)
Medium impact – move upwards within the category range
Considerable detrimental eect on the victim whether nancial or otherwise
Lesser impact – no adjustment
Some detrimental impact on victim, whether nancial or otherwise
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
8 Fraud, Bribery and Money Laundering Offences Definitive Guideline
Eective from 1 October 2014
FRAUD
STEP TWO
Starting point and category range
Having determined the category at step one, the court should use the appropriate starting point (as
adjusted in accordance with step one above) to reach a sentence within the category range in the table
below. The starting point applies to all oenders irrespective of plea or previous convictions.
Where the value is larger or smaller than the amount on which the starting point is based, this should lead
to upward or downward adjustment as appropriate.
Where the value greatly exceeds the amount of the starting point in category 1, it may be
appropriate to move outside the identied range.
TABLE 1
Section 1 Fraud Act 2006
conspiracy to defraud
Maximum: 10 years’ custody
Culpability
Harm A B C
Category 1
£500,000 or more
Starting point based
on £1million
Starting point
7 years’ custody
Starting point
5 years’ custody
Starting point
3 years’ custody
Category range
5 – 8 years’ custody
Category range
3 – 6 years’ custody
Category range
18 months’ – 4 years’ custody
Category 2
£100,000–£500,000
Starting point based
on £300,000
Starting point
5 years’ custody
Starting point
3 years’ custody
Starting point
18 months’ custody
Category range
3 – 6 years’ custody
Category range
18 months’ – 4 years’ custody
Category range
26 weeks’ – 3 years’ custody
Category 3
£20,000 - £100,000
Starting point based
on £50,000
Starting point
3 years’ custody
Starting point
18 months’ custody
Starting point
26 weeks’ custody
Category range
18 months’ – 4 years’ custody
Category range
26 weeks’ – 3 years’ custody
Category range
Medium level community order
– 1 year’s custody
Category 4
£5,000- £20,000
Starting point based
on £12,500
Starting point
18 months’ custody
Starting point
26 weeks’ custody
Starting point
Medium level community order
Category range
26 weeks’ – 3 years’ custody
Category range
Medium level community order
– 1 year’s custody
Category range
Band B ne –
High level community order
Category 5
Less than £5,000
Starting point based
on £2,500
Starting point
36 weeks’ custody
Starting point
Medium level community order
Starting point
Band B ne
Category range
High level community order –
1 year’s custody
Category range
Band B ne – 26 weeks’
custody
Category range
Discharge – Medium level
community order
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
Fraud, Bribery and Money Laundering Offences Definitive Guideline 9
Eective from 1 October 2014
FRAUD
TABLE 2
Section 17 The Act 1968: false accounting
Maximum: 7 years’ custody
Culpability
Harm A B C
Category 1
£500,000 or more
Starting point based
on £1million
Starting point
5 years 6 months’ custody
Starting point
4 years’ custody
Starting point
2 years 6 months’ custody
Category range
4 years’ –
6 years 6 months’ custody
Category range
2 years 6 months’ –
5 years’ custody
Category range
15 months’ –
3 years 6 months’ custody
Category 2
£100,000–£500,000
Starting point based
on £300,000
Starting point
4 years’ custody
Starting point
2 years 6 months’ custody
Starting point
15 months’ custody
Category range
2 years 6 months’ –
5 years’ custody
Category range
15 months’ –
3 years 6 months’ custody
Category range
26 weeks’ –
2 years 6 months’ custody
Category 3
£20,000–£100,000
Starting point based
on £50,000
Starting point
2 years 6 months’ custody
Starting point
15 months’ custody
Starting point
High level community order
Category range
15 months’ –
3 years 6 months’ custody
Category range
High level community order –
2 years 6 months’ custody
Category range
Low level community order –
36 weeks’ custody
Category 4
£5,000–£20,000
Starting point based
on £12,500
Starting point
15 months’ custody
Starting point
High level community order
Starting point
Low level community order
Category range
High level community order –
2 years 6 months’ custody
Category range
Low level community order –
36 weeks’ custody
Category range
Band B ne –
Medium level community order
Category 5
Less than £5,000
Starting point based
on £2,500
Starting point
26 weeks’ custody
Starting point
Low level community order
Starting point
Band B ne
Category range
Medium level community
order – 36 weeks’ custody
Category range
Band B ne –
Medium level community order
Category range
Discharge –
Low level community order
See page 10.
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
10 Fraud, Bribery and Money Laundering Offences Definitive Guideline
Eective from 1 October 2014
The table below contains a non-exhaustive list of additional factual elements providing the context of the
oence and factors relating to the oender.
Identify whether any combination of these or other relevant factors should result in an upward or
downward adjustment from the sentence arrived at so far.
Consecutive sentences for multiple oences may be appropriate where large sums are involved.
Factors increasing seriousness
Statutory aggravating factors:
Previous convictions, having regard to a) the nature of the
oence to which the conviction relates and its relevance to
the current oence; and b) the time that has elapsed since
the conviction
Oence committed whilst on bail
Other aggravating factors:
Steps taken to prevent the victim reporting or obtaining
assistance and/or from assisting or supporting the
prosecution
Attempts to conceal/dispose of evidence
Established evidence of community/wider impact
Failure to comply with current court orders
Oence committed on licence
Oences taken into consideration
Failure to respond to warnings about behaviour
Oences committed across borders
Blame wrongly placed on others
Factors reducing seriousness or reflecting personal
mitigation
No previous convictions or no relevant/recent convictions
Remorse
Good character and/or exemplary conduct
Little or no prospect of success
Serious medical conditions requiring urgent, intensive or
long-term treatment
Age and/or lack of maturity where it aects the
responsibility of the oender
Lapse of time since apprehension where this does not arise
from the conduct of the oender
Mental disorder or learning disability
Sole or primary carer for dependent relatives
Oender co-operated with investigation, made early
admissions and/or voluntarily reported oending
Determination and/or demonstration of steps having been
taken to address addiction or oending behaviour
Activity originally legitimate
FRAUD
See page 11.
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
Fraud, Bribery and Money Laundering Offences Definitive Guideline 11
Eective from 1 October 2014
STEP THREE
Consider any factors which indicate a reduction, such as assistance to the prosecution
The court should take into account sections 73 and 74 of the Serious Organised Crime and Police Act
2005 (assistance by defendants: reduction or review of sentence) and any other rule of law by virtue of
which an oender may receive a discounted sentence in consequence of assistance given (or oered) to
the prosecutor or investigator.
STEP FOUR
Reduction for guilty pleas
The court should take account of any potential reduction for a guilty plea in accordance with section 144
of the Criminal Justice Act 2003 and the Guilty Plea guideline.
STEP FIVE
Totality principle
If sentencing an oender for more than one oence, or where the oender is already serving a sentence,
consider whether the total sentence is just and proportionate to the overall oending behaviour.
STEP SIX
Confiscation, compensation and ancillary orders
The court must proceed with a view to making a conscation order if it is asked to do so by the prosecutor
or if the court believes it is appropriate for it to do so.
Where the oence has resulted in loss or damage the court must consider whether to make a
compensation order.
If the court makes both a conscation order and an order for compensation and the court believes
the oender will not have sucient means to satisfy both orders in full, the court must direct that the
compensation be paid out of sums recovered under the conscation order (section 13 of the Proceeds of
Crime Act 2002).
The court may also consider whether to make ancillary orders. These may include a deprivation order, a
nancial reporting order, a serious crime prevention order and disqualication from acting as a company
director.
STEP SEVEN
Reasons
Section 174 of the Criminal Justice Act 2003 imposes a duty to give reasons for, and explain the eect of,
the sentence.
STEP EIGHT
Consideration for time spent on bail
The court must consider whether to give credit for time spent on bail in accordance with section 240A of
the Criminal Justice Act 2003.
FRAUD
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
12 Fraud, Bribery and Money Laundering Offences Definitive Guideline
Eective from 1 October 2014
FRAUD
Blank page
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
Fraud, Bribery and Money Laundering Offences Definitive Guideline 13
Eective from 1 October 2014
Possession of articles for use in frauds
Fraud Act 2006 (section 6)
Triable either way
Maximum: 5 years’ custody
Oence range: Band A ne – 3 years’ custody
Making or supplying articles for use in frauds
Fraud Act 2006 (section 7)
Triable either way
Maximum: 10 years’ custody
Oence range: Band C ne – 7 years’ custody
POSSESSING, MAKING OR SUPPLYING ARTICLES FOR USE IN FRAUD
Possessing, making or supplying
articles for use in fraud
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
14 Fraud, Bribery and Money Laundering Offences Definitive Guideline
Eective from 1 October 2014
POSSESSING, MAKING OR SUPPLYING ARTICLES FOR USE IN FRAUD
STEP ONE
Determining the oence category
The court should determine the oence category with reference to the tables below. In order to determine
the category the court should assess culpability and harm.
The level of culpability is determined by weighing up all the factors of the case to determine the
oender’s role and the extent to which the oending was planned and the sophistication with which it
wascarried out.
Culpability demonstrated by one or more of the following:
A – High culpability
A leading role where oending is part of a group activity
Involvement of others through pressure, influence
Abuse of position of power or trust or responsibility
Sophisticated nature of oence/signicant planning
Fraudulent activity conducted over sustained period of time
Articles deliberately designed to target victims on basis of vulnerability
B – Medium culpability
Other cases where characteristics for categories A or C are not present
A signicant role where oending is part of a group activity
C – Lesser culpability
Performed limited function under direction
Involved through coercion, intimidation or exploitation
Not motivated by personal gain
Opportunistic ‘one-o’ oence; very little or no planning
Limited awareness or understanding of extent of fraudulent activity
Where there are characteristics present which fall under dierent levels of culpability, the court
should balance these characteristics to reach a fair assessment of the oender’s culpability.
Harm
This guideline refers to preparatory oences where no substantive fraud has been committed. The level
of harm is determined by weighing up all the factors of the case to determine the harm that would be
caused if the article(s) were used to commit a substantive oence.
Greater harm
Large number of articles created/supplied/in possession
Article(s) have potential to facilitate fraudulent acts aecting large number of victims
Article(s) have potential to facilitate fraudulent acts involving signicant sums
Use of third party identities
Oender making considerable gain as result of the oence
Lesser harm
All other oences
Lesser harm
• All other oences
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
Fraud, Bribery and Money Laundering Offences Definitive Guideline 15
Eective from 1 October 2014
POSSESSING, MAKING OR SUPPLYING ARTICLES FOR USE IN FRAUD
STEP TWO
Starting point and category range
Having determined the category at step one, the court should use the appropriate starting point to
reach a sentence within the category range in the table below. The starting point applies to all oenders
irrespective of plea or previous convictions.
Section 6 Fraud Act 2006: Possessing articles for use in fraud
Maximum: 5 years’ custody
Culpability
Harm A B C
Greater Starting point
18 months’ custody
Starting point
36 weeks’ custody
Starting point
High level community order
Category range
36 weeks’ custody –
3 years’ custody
Category range
High level community order –
2 years’ custody
Category range
Medium level community order
– 26 weeks’ custody
Lesser Starting point
26 weeks’ custody
Starting point
Medium level community order
Starting point
Band B ne
Category range
High level community order –
18 months’ custody
Category range
Low level community order –
26 weeks’ custody
Category range
Band A ne –
Medium level community order
Section 7 Fraud Act 2006: Making or adapting or supplying articles for use in fraud
Maximum: 10 years’ custody
Culpability
Harm A B C
Greater Starting point
4 years 6 months’ custody
Starting point
2 years 6 months’ custody
Starting point
1 year’s custody
Category range
3 – 7 years’ custody
Category range
18 months’ –
5 years’ custody
Category range
High level community order –
3 years’ custody
Lesser Starting point
2 years’ custody
Starting point
36 weeks’ custody
Starting point
Medium level community order
Category range
26 weeks’ –
4 years’ custody
Category range
Low level community order –
2 years’ custody
Category range
Band C ne –
26 weeks’ custody
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
16 Fraud, Bribery and Money Laundering Offences Definitive Guideline
Eective from 1 October 2014
POSSESSING, MAKING OR SUPPLYING ARTICLES FOR USE IN FRAUD
The table below contains a non-exhaustive list of additional factual elements providing the context of the
oence and factors relating to the oender.
Identify whether any combination of these or other relevant factors should result in an upward or
downward adjustment from the starting point
Consecutive sentences for multiple oences may be appropriate where large sums are involved.
Factors increasing seriousness
Statutory aggravating factors:
Previous convictions, having regard to a) the nature of the
oence to which the conviction relates and its relevance to
the current oence; and b) the time that has elapsed since
the conviction
Oence committed whilst on bail
Other aggravating factors:
Steps taken to prevent the victim reporting or obtaining
assistance and/or from assisting or supporting the
prosecution
Attempts to conceal/dispose of evidence
Established evidence of community/wider impact
Failure to comply with current court orders
Oence committed on licence
Oences taken into consideration
Failure to respond to warnings about behaviour
Oences committed across borders
Blame wrongly placed on others
Factors reducing seriousness or reflecting personal
mitigation
No previous convictions or no relevant/recent convictions
Remorse
Good character and/or exemplary conduct
Little or no prospect of success
Serious medical conditions requiring urgent, intensive or
long-term treatment
Age and/or lack of maturity where it aects the
responsibility of the oender
Lapse of time since apprehension where this does not arise
from the conduct of the oender
Mental disorder or learning disability
Sole or primary carer for dependent relatives
Oender co-operated with investigation, made early
admissions and/or voluntarily reported oending
Determination and/or demonstration of steps having been
taken to address addiction or oending behaviour
Activity originally legitimate
See page 17.
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
Fraud, Bribery and Money Laundering Offences Definitive Guideline 17
Eective from 1 October 2014
POSSESSING, MAKING OR SUPPLYING ARTICLES FOR USE IN FRAUD
STEP THREE
Consider any factors which indicate a reduction, such as assistance to the prosecution
The court should take into account sections 73 and 74 of the Serious Organised Crime and Police Act
2005 (assistance by defendants: reduction or review of sentence) and any other rule of law by virtue of
which an oender may receive a discounted sentence in consequence of assistance given (or oered) to
the prosecutor or investigator.
STEP FOUR
Reduction for guilty pleas
The court should take account of any potential reduction for a guilty plea in accordance with section 144
of the Criminal Justice Act 2003 and the Guilty Plea guideline.
STEP FIVE
Totality principle
If sentencing an oender for more than one oence, or where the oender is already serving a sentence,
consider whether the total sentence is just and proportionate to the overall oending behaviour.
STEP SIX
Confiscation, compensation and ancillary orders
The court must proceed with a view to making a conscation order if it is asked to do so by the prosecutor
or if the court believes it is appropriate for it to do so.
Where the oence has resulted in loss or damage the court must consider whether to make a
compensation order.
If the court makes both a conscation order and an order for compensation and the court believes
the oender will not have sucient means to satisfy both orders in full, the court must direct that the
compensation be paid out of sums recovered under the conscation order (section 13 of the Proceeds of
Crime Act 2002).
The court may also consider whether to make any ancillary orders.
STEP SEVEN
Reasons
Section 174 of the Criminal Justice Act 2003 imposes a duty to give reasons for, and explain the eect of,
the sentence.
STEP EIGHT
Consideration for time spent on bail
The court must consider whether to give credit for time spent on bail in accordance with section 240A of
the Criminal Justice Act 2003.
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
18 Fraud, Bribery and Money Laundering Offences Definitive Guideline
Eective from 1 October 2014
POSSESSING, MAKING OR SUPPLYING ARTICLES FOR USE IN FRAUD
Blank page
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
Fraud, Bribery and Money Laundering Offences Definitive Guideline 19
Eective from 1 October 2014
Fraud
Conspiracy to defraud (common law)
Triable on indictment only
Fraud Act 2006 (section 1)
Triable either way
Maximum: 10 years’ custody
Oence range: Low level community order – 8 years’ custody
False accounting
Theft Act 1968 (section 17)
Fraudulent evasion of VAT; False statement for VAT purposes; Conduct
amounting to an oence
Value Added Tax Act 1994 (section 72)
Fraudulent evasion of income tax
Taxes Management Act 1970 (section 106A)
Fraudulent evasion of excise duty; Improper importation of goods
Customs and Excise Management Act 1979 (sections 50, 170 and 170B)
Triable either way
Maximum: 7 years’ custody
Oence range: Band C ne – 6 years and 6 months’ custody
Fraud
Cheat the public revenue (common law)
Triable on indictment only
Maximum: Life imprisonment
Oence range: 3 – 17 years’ custody
REVENUE FRAUD
Revenue fraud
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
20 Fraud, Bribery and Money Laundering Offences Definitive Guideline
Eective from 1 October 2014
STEP ONE
Determining the oence category
The court should determine the oence category with reference to the tables below. In order to determine
the category the court should assess culpability and harm.
Harm – Gain/intended gain to oender or loss/
intended loss to HMRC
Category 1
£50 million or more
Starting point based on £80 million
Category 2
£10 million–£50 million
Starting point based on £30 million
Category 3
£2 million–£10 million
Starting point based on £5 million
Category 4
£500,000–£2 million
Starting point based on £1 million
Category 5
£100,000–£500,000
Starting point based on £300,000
Category 6
£20,000–£100,000
Starting point based on £50,000
Category 7
Less than £20,000
Starting point based on £12,500
The level of culpability is determined by
weighing up all the factors of the case to
determine the oender’s role and the extent
to which the oending was planned and the
sophistication with which it wascarried out.
Culpability demonstrated by one or more of the
following:
A – High culpability
A leading role where oending is part of a group activity
Involvement of others through pressure/influence
Abuse of position of power or trust or responsibility
Sophisticated nature of oence/signicant planning
Fraudulent activity conducted over sustained period of time
B – Medium culpability
Other cases where characteristics for categories A or C are
not present
A signicant role where oending is part of a group activity
C – Lesser culpability
Involved through coercion, intimidation or exploitation
Not motivated by personal gain
Opportunistic ‘one-o’ oence; very little or no planning
Performed limited function under direction
Limited awareness or understanding of extent of fraudulent
activity
Where there are characteristics present which
fall under dierent levels of culpability, the
court should balance these characteristics
to reach a fair assessment of the oender’s
culpability.
REVENUE FRAUD
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
Fraud, Bribery and Money Laundering Offences Definitive Guideline 21
Eective from 1 October 2014
STEP TWO
Starting point and category range
Having determined the category at step one, the court should use the appropriate starting point to
reach a sentence within the category range in the table below. The starting point applies to all oenders
irrespective of plea or previous convictions.
Where the value is larger or smaller than the amount on which the starting point is based, this should lead
to upward or downward adjustment as appropriate.
Where the value greatly exceeds the amount of the starting point in category 1, it may be
appropriate to move outside the identied range.
TABLE 1
Section 1 Fraud Act 2006
Conspiracy to defraud (common law)
Maximum: 10 years’ custody
For oences where the value of the fraud is over £2 million refer to the corresponding category in Table 3
subject to the maximum sentence of 10 years for this oence.
Culpability
Harm A B C
Category 4
£500,000–£2 million
Starting point based
on £1million
Starting point
7 years’ custody
Starting point
5 years’ custody
Starting point
3 years’ custody
Category range
5 – 8 years’ custody
Category range
3 – 6 years’ custody
Category range
18 months’ –
4 years’ custody
Category 5
£100,000–£500,000
Starting point based
on £300,000
Starting point
5 years’ custody
Starting point
3 years’ custody
Starting point
18 months’ custody
Category range
3 – 6 years’ custody
Category range
18 months’ –
4 years’ custody
Category range
26 weeks’ –
3 years’ custody
Category 6
£20,000–£100,000
Starting point based
on £50,000
Starting point
3 years’ custody
Starting point
18 months’ custody
Starting point
26 weeks’ custody
Category range
18 months’ –
4 years’ custody
Category range
26 weeks’ –
3 years’ custody
Category range
Medium level community order
– 1 year’s custody
Category 7
Less than £20,000
Starting point based
on £12,500
Starting point
18 months’ custody
Starting point
36 weeks’ custody
Starting point
Medium level community order
Category range
36 weeks’ –
3 years’ custody
Category range
Medium level community order
– 18 months’ custody
Category range
Low level community order –
High level community order
REVENUE FRAUD
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
22 Fraud, Bribery and Money Laundering Offences Definitive Guideline
Eective from 1 October 2014
TABLE 2
Section 17 Theft Act 1968: False Accounting
Section 72(1) Value Added Tax Act 1994: Fraudulent evasion of VAT
Section 72(3) Valued Added Tax Act 1994: False statement for VAT purposes
Section 72(8) Value Added Tax Act 1994: Conduct amounting to an offence
Section 106(a) Taxes Management Act 1970: Fraudulent evasion of income tax
Section 170(1)(a)(i), (ii), (b), 170(2)(a), 170B Customs and Excise Management Act 1979: Fraudulent
evasion of excise duty
Section 50(1)(a), (2) Customs and Excise Management Act 1979: Improper importation of goods
Maximum: 7 years’ custody
Culpability
Harm A B C
Category 4
£500,000–£2 million
Starting point based
on £1million
Starting point
5 years 6 months’ custody
Starting point
4 years’ custody
Starting point
2 years 6 months’ custody
Category range
4 years’ –
6 years 6 months’ custody
Category range
2 years 6 months’ –
5 years’ custody
Category range
15 months’ –
3 years 6 months’ custody
Category 5
£100,000–£500,000
Starting point based
on £300,000
Starting point
4 years’ custody
Starting point
2 years 6 months’ custody
Starting point
15 months’ custody
Category range
2 years 6 months’ –
5 years’ custody
Category range
15 months’ –
3 years 6 months’ custody
Category range
26 weeks’ –
2 years 6 months’ custody
Category 6
£20,000–£100,000
Starting point based
on £50,000
Starting point
2 years 6 months’ custody
Starting point
15 months’ custody
Starting point
High level community order
Category range
15 months’ –
3 years 6 months’ custody
Category range
High level community order -
2 years 6 months’ custody
Category range
Low level community order –
36 weeks’ custody
Category 7
Less than £20,000
Starting point based
on £12,500
Starting point
15 months’ custody
Starting point
26 weeks’ custody
Starting point
Medium level community order
Category range
26 weeks’ –
2 years 6 months’ custody
Category range
Medium level community order
– 15 months’ custody
Category range
Band C ne –
High level community order
See page 23.
REVENUE FRAUD
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
Fraud, Bribery and Money Laundering Offences Definitive Guideline 23
Eective from 1 October 2014
TABLE 3
Cheat the Revenue (common law)
Maximum: Life imprisonment
Where the oending is on the most serious scale, involving sums signicantly higher than the starting
point in category 1, sentences of 15 years and above may be appropriate depending on the role of the
oender. In cases involving sums below £2 million the court should refer to Table 1.
Culpability
Harm A B C
Category 1
£50 million or more
Starting point based on
£80 million
Starting point
12 years’ custody
Starting point
8 years’ custody
Starting point
6 years’ custody
Category range
10 – 17 years’ custody
Category range
7 – 12 years’ custody
Category range
4 – 8 years’ custody
Category 2
£10 million–£50 million
Starting point based on
£30 million
Starting point
10 years’ custody
Starting point
7 years’ custody
Starting point
5 years’ custody
Category range
8 – 13 years’ custody
Category range
5 – 9 years’ custody
Category range
3 – 6 years’ custody
Category 3
£2 million–£10 million
Starting point based on
£5 million
Starting point
8 years’ custody
Starting point
6 years’ custody
Starting point
4 years’ custody
Category range
6 – 10 years’ custody
Category range
4 – 7 years’ custody
Category range
3 – 5 years’ custody
See page 24.
REVENUE FRAUD
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
24 Fraud, Bribery and Money Laundering Offences Definitive Guideline
Eective from 1 October 2014
The table below contains a non-exhaustive list of additional factual elements providing the context of the
oence and factors relating to the oender.
Identify whether any combination of these or other relevant factors should result in any further upward or
downward adjustment from the starting point.
Consecutive sentences for multiple oences may be appropriate where large sums are involved.
Factors increasing seriousness
Statutory aggravating factors:
Previous convictions, having regard to a) the nature of the
oence to which the conviction relates and its relevance to
the current oence; and b) the time that has elapsed since
the conviction
Oence committed whilst on bail
Other aggravating factors:
Involves multiple frauds
Number of false declarations
Attempts to conceal/dispose of evidence
Failure to comply with current court orders
Oence committed on licence
Oences taken into consideration
Failure to respond to warnings about behaviour
Blame wrongly placed on others
Damage to third party (for example as a result of identity
the)
Dealing with goods with an additional health risk
Disposing of goods to under age purchasers
Factors reducing seriousness or reflecting personal
mitigation
No previous convictions or no relevant/recent convictions
Remorse
Good character and/or exemplary conduct
Little or no prospect of success
Serious medical condition requiring urgent, intensive or
long term treatment
Age and/or lack of maturity where it aects the
responsibility of the oender
Lapse of time since apprehension where this does not arise
from the conduct of the oender
Mental disorder or learning disability
Sole or primary carer for dependent relatives
Oender co-operated with investigation, made early
admissions and/or voluntarily reported oending
Determination and/or demonstration of steps having been
taken to address addiction or oending behaviour
Activity originally legitimate
REVENUE FRAUD
See page 25.
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
Fraud, Bribery and Money Laundering Offences Definitive Guideline 25
Eective from 1 October 2014
STEP THREE
Consider any factors which indicate a reduction, such as assistance to the prosecution
The court should take into account sections 73 and 74 of the Serious Organised Crime and Police Act
2005 (assistance by defendants: reduction or review of sentence) and any other rule of law by virtue of
which an oender may receive a discounted sentence in consequence of assistance given (or oered) to
the prosecutor or investigator.
STEP FOUR
Reduction for guilty pleas
The court should take account of any potential reduction for a guilty plea in accordance with section 144
of the Criminal Justice Act 2003 and the Guilty Plea guideline.
STEP FIVE
Totality principle
If sentencing an oender for more than one oence, or where the oender is already serving a sentence,
consider whether the total sentence is just and proportionate to the overall oending behaviour.
STEP SIX
Confiscation, compensation and ancillary orders
The court must proceed with a view to making a conscation order if it is asked to do so by the prosecutor
or if the court believes it is appropriate for it to do so.
Where the oence has resulted in loss or damage the court must consider whether to make a
compensation order.
If the court makes both a conscation order and an order for compensation and the court believes
the oender will not have sucient means to satisfy both orders in full, the court must direct that the
compensation be paid out of sums recovered under the conscation order (section 13 of the Proceeds of
Crime Act 2002).
The court may also consider whether to make ancillary orders. These may include a deprivation order, a
nancial reporting order, a serious crime prevention order and disqualication from acting as a company
director.
STEP SEVEN
Reasons
Section 174 of the Criminal Justice Act 2003 imposes a duty to give reasons for, and explain the eect of,
the sentence.
STEP EIGHT
Consideration for time spent on bail
The court must consider whether to give credit for time spent on bail in accordance with section 240A of
the Criminal Justice Act 2003.
REVENUE FRAUD
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
26 Fraud, Bribery and Money Laundering Offences Definitive Guideline
Eective from 1 October 2014
Blank page
REVENUE FRAUD
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
Fraud, Bribery and Money Laundering Offences Definitive Guideline 27
Eective from 1 October 2014
Dishonest representations for obtaining benefit etc
Social Security Administration Act 1992 (section 111A)
Tax Credit fraud
Tax Credits Act 2002 (section 35)
False accounting
Theft Act 1968 (section 17)
Triable either way
Maximum: 7 years’ custody
Oence range: Discharge – 6 years 6 months’ custody
False representations for obtaining benefit etc
Social Security Administration Act 1992 (section 112)
Triable summarily only
Maximum: Level 5 ne and/or 3 months’ custody
Oence range: Discharge – 12 weeks’ custody
Fraud by false representation, fraud by failing to disclose information,
fraud by abuse of position
Fraud Act 2006 (section 1)
Triable either way
Conspiracy to defraud
Common law
Triable on indictment only
Maximum: 10 years’ custody
Oence range: Discharge – 8 years’ custody
BENEFIT FRAUD
Benefit fraud
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
28 Fraud, Bribery and Money Laundering Offences Definitive Guideline
Eective from 1 October 2014
BENEFIT FRAUD
STEP ONE
Determining the oence category
The court should determine the oence category with reference to the tables below. In order to determine
the category the court should assess culpability and harm.
Harm – Amount obtained or intended to be obtained
Category 1
£500,000–£2 million
Starting point based on £1 million
Category 2
£100,000–£500,000
Starting point based on £300,000
Category 3
£50,000–£100,000
Starting point based on £75,000
Category 4
£10,000–£50,000
Starting point based on £30,000
Category 5
£2,500–£10,000
Starting point based on £5,000
Category 6
Less than £2,500
Starting point based on £1,000
The level of culpability is determined by
weighing up all the factors of the case to
determine the oender’s role and the extent
to which the oending was planned and the
sophistication with which it wascarried out.
Culpability demonstrated by one or more of the
following:
A – High culpability
A leading role where oending is part of a group activity
Involvement of others through pressure/influence
Abuse of position of power or trust or responsibility
Sophisticated nature of oence/signicant planning
B – Medium culpability
Other cases where characteristics for categories A or C are
not present
Claim not fraudulent from the outset
A signicant role where oending is part of a group activity
C – Lesser culpability
Involved through coercion, intimidation or exploitation
Performed limited function under direction
Where there are characteristics present which
fall under dierent levels of culpability, the
court should balance these characteristics
to reach a fair assessment of the oender’s
culpability.
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
Fraud, Bribery and Money Laundering Offences Definitive Guideline 29
Eective from 1 October 2014
BENEFIT FRAUD
STEP TWO
Starting point and category range
Having determined the category at step one, the court should use the appropriate starting point to
reach a sentence within the category range in the table below. The starting point applies to all oenders
irrespective of plea or previous convictions.
Where the value is larger or smaller than the amount on which the starting point is based, this should lead
to upward or downward adjustment as appropriate.
Where the value greatly exceeds the amount of the starting point in category 1, it may be
appropriate to move outside the identied range.
TABLE 1
Section 111A Social Security Administration Act 1992: Dishonest representations to obtain
benefit etc
Section 35 Tax Credits Act 2002: Tax Credit fraud
Section 17 Theft Act 1968: False accounting
Maximum: 7 years’ custody
Culpability
Harm A B C
Category 1
£500,000 or more
Starting point based
on £1million
Starting point
5 years 6 months’ custody
Starting point
4 years’ custody
Starting point
2 years 6 months’ custody
Category range
4 years’ –
6 years 6 months’ custody
Category range
2 years 6 months’ –
5 years’ custody
Category range
15 months’ –
3 years 6 months’ custody
Category 2
£100,000–£500,000
Starting point based
on £300,000
Starting point
4 years’ custody
Starting point
2 years 6 months’ custody
Starting point
1 year’s custody
Category range
2 years 6 months’ –
5 years’ custody
Category range
15 months’ –
3 years 6 months’ custody
Category range
26 weeks’ –
2 years 6 months’ custody
Category 3
£50,000–£100,000
Starting point based
on £75,000
Starting point
2 years 6 months’ custody
Starting point
1 year’s custody
Starting point
26 weeks’ custody
Category range
2 years’ –
3 years 6 months’ custody
Category range
26 weeks’ –
2 years 6 months’ custody
Category range
High level community order –
36 weeks’ custody
Category 4
£10,000–£50,000
Starting point based
on £30,000
Starting point
18 months’ custody
Starting point
36 weeks’ custody
Starting point
Medium level community order
Category range
36 weeks’ –
2 years 6 months’ custody
Category range
Medium level community order
– 21 months’ custody
Category range
Low level community order –
26 weeks’ custody
Category 5
£2,500–£10,000
Starting point based
on £5,000
Starting point
36 weeks’ custody
Starting point
Medium level community order
Starting point
Low level community order
Category range
Medium level community order
– 18 months’ custody
Category range
Low level community order –
26 weeks’ custody
Category range
Band B ne –
Medium level community order
Category 6
Less than £2,500
Starting point based
on £1,000
Starting point
Medium level community order
Starting point
Low level community order
Starting point
Band A ne
Category range
Low level community order –
26 weeks’ custody
Category range
Band A ne –
Medium level community order
Category range
Discharge –
Band B ne
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
30 Fraud, Bribery and Money Laundering Offences Definitive Guideline
Eective from 1 October 2014
BENEFIT FRAUD
TABLE 2
Section 112 Social Security Administration Act 1992: False representations for obtaining benefit etc
Maximum: Level 5 ne and/or 3 months’ custody
Culpability
Harm A B C
Category 5
Above £2,500
Starting point based
on £5,000
Starting point
High level community order
Starting point
Medium level community order
Starting point
Low level community order
Category range
Medium level community order
– 12 weeks’ custody
Category range
Band B ne –
High level community order
Category range
Band A ne –
Medium level community order
Category 6
Less than £2,500
Starting point based
on £1,000
Starting point
Medium level community order
Starting point
Band B ne
Starting point
Band A ne
Category range
Low level community order –
High level community order
Category range
Band A ne –
Band C ne
Category range
Discharge –
Band B ne
See page 31.
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
Fraud, Bribery and Money Laundering Offences Definitive Guideline 31
Eective from 1 October 2014
BENEFIT FRAUD
TABLE 3
Section 1 Fraud Act 2006
Conspiracy to defraud (common law)
Maximum: 10 years’ custody
Culpability
Harm A B C
Category 1
£500,000 or more
Starting point based
on £1million
Starting point
7 years’ custody
Starting point
5 years’ custody
Starting point
3 years’ custody
Category range
5 – 8 years’ custody
Category range
3 – 6 years’ custody
Category range
18 months’ –
4 years’ custody
Category 2
£100,000–£500,000
Starting point based
on £300,000
Starting point
5 years’ custody
Starting point
3 years’ custody
Starting point
15 months’ custody
Category range
3 – 6 years’ custody
Category range
18 months’ –
4 years’ custody
Category range
26 weeks’ –
3 years’ custody
Category 3
£50,000–£100,000
Starting point based
on £75,000
Starting point
3 years’ custody
Starting point
15 months’ custody
Starting point
36 weeks’ custody
Category range
2 years 6 months’ –
4 years’ custody
Category range
36 weeks’ –
3 years’ custody
Category range
26 weeks’ –
1 year’s custody
Category 4
£10,000–£50,000
Starting point based
on £30,000
Starting point
21 months’ custody
Starting point
1 year’s custody
Starting point
High level community order
Category range
1 year’s –
3 years’ custody
Category range
High level community order –
2 years’ custody
Category range
Low level community order –
26 weeks’ custody
Category 5
£2,500–£10,000
Starting point based
on £5,000
Starting point
1 year’s custody
Starting point
High level community order
Starting point
Medium level community order
Category range
High level community order –
2 years’ custody
Category range
Low level community order –
26 weeks’ custody
Category range
Band C ne –
High level community order
Category 6
Less than £2,500
Starting point based
on £1,000
Starting point
High level community order
Starting point
Low level community order
Starting point
Band B ne
Category range
Low level community order –
26 weeks’ custody
Category range
Band B ne –
Medium level community order
Category range
Discharge –
Band C ne
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
32 Fraud, Bribery and Money Laundering Offences Definitive Guideline
Eective from 1 October 2014
BENEFIT FRAUD
The table below contains a non-exhaustive list of additional factual elements providing the context of the
oence and factors relating to the oender.
Identify whether any combination of these or other relevant factors should result in any further upward or
downward adjustment from the starting point.
Consecutive sentences for multiple oences may be appropriate where large sums are involved.
Factors increasing seriousness
Statutory aggravating factors:
Previous convictions, having regard to a) the nature of the
oence to which the conviction relates and its relevance to
the current oence; and b) the time that has elapsed since
the conviction
Oence committed whilst on bail
Other aggravating factors:
Claim fraudulent from the outset
Proceeds of fraud funded lavish lifestyle
Length of time over which the oending was committed
Number of false declarations
Attempts to conceal/dispose of evidence
Failure to comply with current court orders
Oence committed on licence
Oences taken into consideration
Failure to respond to warnings about behaviour
Blame wrongly placed on others
Damage to third party (for example as a result of identity
the)
Factors reducing seriousness or reflecting personal
mitigation
No previous convictions or no relevant/recent convictions
Remorse
Good character and/or exemplary conduct
Serious medical condition requiring urgent, intensive or
long term treatment
Legitimate entitlement to benets not claimed
Little or no prospect of success
Age and/or lack of maturity where it aects the
responsibility of the oender
Lapse of time since apprehension where this does not arise
from the conduct of the oender
Mental disorder or learning disability
Sole or primary carer for dependent relatives
Oender co-operated with investigation, made early
admissions and/or voluntarily reported oending
Determination and/or demonstration of steps having been
taken to address addiction or oending behaviour
Oender experiencing signicant nancial hardship or
pressure at time fraud was committed due to exceptional
circumstances
See page 33.
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
Fraud, Bribery and Money Laundering Offences Definitive Guideline 33
Eective from 1 October 2014
BENEFIT FRAUD
STEP THREE
Consider any factors which indicate a reduction, such as assistance to the prosecution
The court should take into account sections 73 and 74 of the Serious Organised Crime and Police Act
2005 (assistance by defendants: reduction or review of sentence) and any other rule of law by virtue of
which an oender may receive a discounted sentence in consequence of assistance given (or oered) to
the prosecutor or investigator.
STEP FOUR
Reduction for guilty pleas
The court should take account of any potential reduction for a guilty plea in accordance with section 144
of the Criminal Justice Act 2003 and the Guilty Plea guideline.
STEP FIVE
Totality principle
If sentencing an oender for more than one oence, or where the oender is already serving a sentence,
consider whether the total sentence is just and proportionate to the overall oending behaviour.
STEP SIX
Confiscation, compensation and ancillary orders
The court must proceed with a view to making a conscation order if it is asked to do so by the prosecutor
or if the court believes it is appropriate for it to do so.
Where the oence has resulted in loss or damage the court must consider whether to make a
compensation order.
If the court makes both a conscation order and an order for compensation and the court believes
the oender will not have sucient means to satisfy both orders in full, the court must direct that the
compensation be paid out of sums recovered under the conscation order (section 13 of the Proceeds of
Crime Act 2002).
The court may also consider whether to make any ancillary orders.
STEP SEVEN
Reasons
Section 174 of the Criminal Justice Act 2003 imposes a duty to give reasons for, and explain the eect of,
the sentence.
STEP EIGHT
Consideration for time spent on bail
The court must consider whether to give credit for time spent on bail in accordance with section 240A of
the Criminal Justice Act 2003.
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
34 Fraud, Bribery and Money Laundering Offences Definitive Guideline
Eective from 1 October 2014
BENEFIT FRAUD
Blank page
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
Fraud, Bribery and Money Laundering Offences Definitive Guideline 35
Eective from 1 October 2014
Concealing/disguising/converting/transferring/removing criminal property
from England & Wales
Proceeds of Crime Act 2002 (section 327)
Entering into arrangements concerning criminal property
Proceeds of Crime Act 2002 (section 328)
Acquisition, use and possession of criminal property
Proceeds of Crime Act 2002 (section 329)
Triable either way
Maximum: 14 years’ custody
Oence range: Band B ne – 13 years’ imprisonment
MONEY LAUNDERING
Money laundering
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
36 Fraud, Bribery and Money Laundering Offences Definitive Guideline
Eective from 1 October 2014
MONEY LAUNDERING
STEP ONE
Determining the oence category
The court should determine the oence category with reference to the tables below. In order to determine
the category the court should assess culpability and harm.
Harm A
Harm is initially assessed by the value of the
money laundered.
Category 1
£10 million or more
Starting point based on £30 million
Category 2
£2 million–£10 million
Starting point based on £5 million
Category 3
£500,000–£2 million
Starting point based on £1 million
Category 4
£100,000–£500,000
Starting point based on £300,000
Category 5
£10,000–£100,000
Starting point based on £50,000
Category 6
Less than £10,000
Starting point based on £5,000
Harm B
Money laundering is an integral component
of much serious criminality. To complete the
assessment of harm, the court should take
into account the level of harm associated
with the underlying oence to determine
whether it warrants upward adjustment of
the starting point within the range, or in
appropriate cases, outside the range.
Where it is possible to identify the underlying
oence, regard should be given to the relevant
sentencing levels for that oence.
The level of culpability is determined by
weighing up all the factors of the case to
determine the oender’s role and the extent
to which the oending was planned and the
sophistication with which it wascarried out.
Culpability demonstrated by one or more of the
following:
A – High culpability
A leading role where oending is part of a group activity
Involvement of others through pressure, influence
Abuse of position of power or trust or responsibility
Sophisticated nature of oence/signicant planning
Criminal activity conducted over sustained period of time
B – Medium culpability
Other cases where characteristics for categories A or C are
not present
A signicant role where oending is part of a group activity
C – Lesser culpability
Performed limited function under direction
Involved through coercion, intimidation or exploitation
Not motivated by personal gain
Opportunistic ‘one-o’ oence; very little or no planning
Limited awareness or understanding of extent of criminal
activity
Where there are characteristics present which
fall under dierent levels of culpability, the
court should balance these characteristics
to reach a fair assessment of the oender’s
culpability.
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
Fraud, Bribery and Money Laundering Offences Definitive Guideline 37
Eective from 1 October 2014
MONEY LAUNDERING
STEP TWO
Starting point and category range
Having determined the category at step one, the court should use the appropriate starting point (as
adjusted in accordance with step one above) to reach a sentence within the category range in the
table below. The starting point applies to all oenders irrespective of plea or previous convictions.
Where the value is larger or smaller than the amount on which the starting point is based, this should
lead to upward or downward adjustment as appropriate.
Where the value greatly exceeds the amount of the starting point in category 1, it may be
appropriate to move outside the identied range.
Section 327 Proceeds of Crime Act 2002: Concealing/disguising/converting/transferring/removing
criminal property from England & Wales
Section 328 Proceeds of Crime Act 2002: Entering into arrangements concerning criminal property
Section 329 Proceeds of Crime Act 2002: Acquisition, use and possession of criminal property
Maximum: 14 years’ custody
Culpability
Harm A B C
Category 1
£10 million or more
Starting point based
on £30 million
Starting point
10 years’ custody
Starting point
7 years’ custody
Starting point
4 years’ custody
Category range
8 – 13 years’ custody
Category range
5 – 10 years’ custody
Category range
3 – 6 years’ custody
Category 2
£2 million–£10
million
Starting point based
on £5 million
Starting point
8 years’ custody
Starting point
6 years’ custody
Starting point
3 years 6 months’ custody
Category range
6 – 9 years’ custody
Category range
3 years 6 months’ –
7 years’ custody
Category range
2 – 5 years’ custody
Category 3
£500,000–£2 million
Starting point based
on £1 million
Starting point
7 years’ custody
Starting point
5 years’ custody
Starting point
3 years’ custody
Category range
5 – 8 years’ custody
Category range
3 – 6 years’ custody
Category range
18 months’ –
4 years’ custody
Category 4
£100,000–£500,000
Starting point based
on £300,000
Starting point
5 years’ custody
Starting point
3 years’ custody
Starting point
18 months’ custody
Category range
3 – 6 years’ custody
Category range
18 months’ –
4 years’ custody
Category range
26 weeks’ –
3 years’ custody
Category 5
£10,000–£100,000
Starting point based
on £50,000
Starting point
3 years’ custody
Starting point
18 months’ custody
Starting point
26 weeks’ custody
Category range
18 months’ –
4 years’ custody
Category range
26 weeks’ –
3 years’ custody
Category range
Medium level community
order – 1 year’s custody
Category 6
Less than £10,000
Starting point based
on £5,000
Starting point
1 year’s custody
Starting point
High level community order
Starting point
Low level community order
Category range
26 weeks’ –
2 years’ custody
Category range
Low level community order –
1 year’s custody
Category range
Band B ne –
Medium level community
order
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
38 Fraud, Bribery and Money Laundering Offences Definitive Guideline
Eective from 1 October 2014
MONEY LAUNDERING
The table below contains a non-exhaustive list of additional factual elements providing the context of the
oence and factors relating to the oender.
Identify whether any combination of these or other relevant factors should result in an upward or
downward adjustment of the sentence arrived at thus far.
Consecutive sentences for multiple oences may be appropriate where large sums are involved.
Factors increasing seriousness
Statutory aggravating factors:
Previous convictions, having regard to a) the nature of the
oence to which the conviction relates and its relevance to
the current oence; and b) the time that has elapsed since
the conviction
Oence committed whilst on bail
Other aggravating factors:
Attempts to conceal/dispose of evidence
Established evidence of community/wider impact
Failure to comply with current court orders
Oence committed on licence
Oences taken into consideration
Failure to respond to warnings about behaviour
Oences committed across borders
Blame wrongly placed on others
Damage to third party for example loss of employment to
legitimate employees
Factors reducing seriousness or reflecting personal
mitigation
No previous convictions or no relevant/recent convictions
Remorse
Little or no prospect of success
Good character and/or exemplary conduct
Serious medical conditions requiring urgent, intensive or
long-term treatment
Age and/or lack of maturity where it aects the
responsibility of the oender
Lapse of time since apprehension where this does not arise
from the conduct of the oender
Mental disorder or learning disability
Sole or primary carer for dependent relatives
Oender co-operated with investigation, made early
admissions and/or voluntarily reported oending
Determination and/or demonstration of steps having been
taken to address addiction or oending behaviour
Activity originally legitimate
See page 39.
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
Fraud, Bribery and Money Laundering Offences Definitive Guideline 39
Eective from 1 October 2014
MONEY LAUNDERING
STEP THREE
Consider any factors which indicate a reduction, such as assistance to the prosecution
The court should take into account sections 73 and 74 of the Serious Organised Crime and Police Act
2005 (assistance by defendants: reduction or review of sentence) and any other rule of law by virtue of
which an oender may receive a discounted sentence in consequence of assistance given (or oered) to
the prosecutor or investigator.
STEP FOUR
Reduction for guilty pleas
The court should take account of any potential reduction for a guilty plea in accordance with section 144
of the Criminal Justice Act 2003 and the Guilty Plea guideline.
STEP FIVE
Totality principle
If sentencing an oender for more than one oence, or where the oender is already serving a sentence,
consider whether the total sentence is just and proportionate to the overall oending behaviour.
STEP SIX
Confiscation, compensation and ancillary orders
The court must proceed with a view to making a conscation order if it is asked to do so by the prosecutor
or if the court believes it is appropriate for it to do so.
Where the oence has resulted in loss or damage the court must consider whether to make a
compensation order.
If the court makes both a conscation order and an order for compensation and the court believes
the oender will not have sucient means to satisfy both orders in full, the court must direct that the
compensation be paid out of sums recovered under the conscation order (section 13 of the Proceeds of
Crime Act 2002).
The court may also consider whether to make ancillary orders. These may include a deprivation order, a
nancial reporting order, a serious crime prevention order and disqualication from acting as a company
director.
STEP SEVEN
Reasons
Section 174 of the Criminal Justice Act 2003 imposes a duty to give reasons for, and explain the eect of,
the sentence.
STEP EIGHT
Consideration for time spent on bail
The court must consider whether to give credit for time spent on bail in accordance with section 240A of
the Criminal Justice Act 2003.
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
40 Fraud, Bribery and Money Laundering Offences Definitive Guideline
Eective from 1 October 2014
MONEY LAUNDERING
Blank page
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
Fraud, Bribery and Money Laundering Offences Definitive Guideline 41
Eective from 1 October 2014
Bribing another person
Bribery Act 2010 (section 1)
Being bribed
Bribery Act 2010 (section 2)
Bribery of foreign public ocials
Bribery Act 2010 (section 6)
Triable either way
Maximum: 10 years’ custody
Oence range: Discharge – 8 years’ custody
BRIBERY
Bribery
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
42 Fraud, Bribery and Money Laundering Offences Definitive Guideline
Eective from 1 October 2014
BRIBERY
STEP ONE
Determining the oence category
The court should determine the oence category with reference to the tables below. In order to determine
the category the court should assess culpability and harm.
The level of culpability is determined by
weighing up all the factors of the case to
determine the oender’s role and the extent
to which the oending was planned and the
sophistication with which it wascarried out.
Culpability demonstrated by one or more of the
following:
A – High culpability
A leading role where oending is part of a group activity
Involvement of others through pressure, influence
Abuse of position of signicant power or trust or
responsibility
Intended corruption (directly or indirectly) of a senior
ocial performing a public function
Intended corruption (directly or indirectly) of a law
enforcement ocer
Sophisticated nature of oence/signicant planning
Oending conducted over sustained period of time
Motivated by expectation of substantial nancial,
commercial or political gain
B – Medium culpability
All other cases where characteristics for categories A or C
are not present
A signicant role where oending is part of a group activity
C – Lesser culpability
Involved through coercion, intimidation or exploitation
Not motivated by personal gain
Peripheral role in organised activity
Opportunistic ‘one-o’ oence; very little or no planning
Limited awareness or understanding of extent of corrupt
activity
Harm is assessed in relation to any impact
caused by the oending (whether to identiable
victims or in a wider context) and the actual or
intended gain to the oender.
Harm demonstrated by one or more of the following
factors:
Category 1
• Serious detrimental eect on individuals
(for example by provision of substandard
goods or services resulting from the
corrupt behaviour)
• Serious environmental impact
• Serious undermining of the proper
function of local or national government,
business or public services
• Substantial actual or intended nancial
gain to oender or another or loss
caused to others
Category 2
• Signicant detrimental eect on
individuals
• Signicant environmental impact
• Signicant undermining of the
proper function of local or national
government, business or public services
• Signicant actual or intended nancial
gain to oender or another or loss
caused to others
• Risk of category 1 harm
Category 3
• Limited detrimental impact on
individuals, the environment,
government, business or public services
• Risk of category 2 harm
Category 4
• Risk of category 3 harm
Risk of harm involves consideration of both the likelihood
of harm occurring and the extent of it if it does. Risk of
harm is less serious than the same actual harm. Where
the oence has caused risk of harm but no (or much less)
actual harm, the normal approach is to move to the next
category of harm down. This may not be appropriate
if either the likelihood or extent of potential harm is
particularly high.
Where there are characteristics present which
fall under dierent levels of culpability, the
court should balance these characteristics
to reach a fair assessment of the oender’s
culpability.
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
Fraud, Bribery and Money Laundering Offences Definitive Guideline 43
Eective from 1 October 2014
BRIBERY
STEP TWO
Starting point and category range
Having determined the category at step one, the court should use the corresponding starting point to
reach a sentence within the category range below. The starting point applies to all oenders irrespective of
plea or previous convictions.
Section 1 Bribery Act 2010: Bribing another person
Section 2 Bribery Act 2010: Being bribed
Section 6 Bribery Act 2010: Bribery of foreign public officials
Maximum: 10 years’ custody
Culpability
Harm A B C
Category 1 Starting point
7 years’ custody
Starting point
5 years’ custody
Starting point
3 years’ custody
Category range
5 – 8 years’ custody
Category range
3 – 6 years’ custody
Category range
18 months’ –
4 years’ custody
Category 2 Starting point
5 years’ custody
Starting point
3 years’ custody
Starting point
18 months’ custody
Category range
3 – 6 years’ custody
Category range
18 months’ –
4 years’ custody
Category range
26 weeks’ –
3 years’ custody
Category 3 Starting point
3 years’ custody
Starting point
18 months’ custody
Starting point
26 weeks’ custody
Category range
18 months’ –
4 years’ custody
Category range
26 weeks’ –
3 years’ custody
Category range
Medium level community order
– 1 year’s custody
Category 4 Starting point
18 months’ custody
Starting point
26 weeks’ custody
Starting point
Medium level community order
Category range
26 weeks’ –
3 years’ custody
Category range
Medium level community order
– 1 year’s custody
Category range
Band B ne –
High level community order
See page 44.
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
44 Fraud, Bribery and Money Laundering Offences Definitive Guideline
Eective from 1 October 2014
The table below contains a non-exhaustive list of additional factual elements providing the context of the
oence and factors relating to the oender.
Identify whether any combination of these or other relevant factors should result in an upward or
downward adjustment from the starting point.
Consecutive sentences for multiple oences may be appropriate where large sums are involved.
Factors increasing seriousness
Statutory aggravating factors:
Previous convictions, having regard to a) the nature of the
oence to which the conviction relates and its relevance to
the current oence; and b) the time that has elapsed since
the conviction
Oence committed whilst on bail
Other aggravating factors:
Steps taken to prevent victims reporting or obtaining
assistance and/or from assisting or supporting the
prosecution
Attempts to conceal/dispose of evidence
Established evidence of community/wider impact
Failure to comply with current court orders
Oence committed on licence
Oences taken into consideration
Failure to respond to warnings about behaviour
Oences committed across borders
Blame wrongly placed on others
Pressure exerted on another party
Oence committed to facilitate other criminal activity
Factors reducing seriousness or reflecting personal
mitigation
No previous convictions or no relevant/recent convictions
Remorse
Good character and/or exemplary conduct
Little or no prospect of success
Serious medical conditions requiring urgent, intensive or
long-term treatment
Age and/or lack of maturity where it aects the
responsibility of the oender
Lapse of time since apprehension where this does not arise
from the conduct of the oender
Mental disorder or learning disability
Sole or primary carer for dependent relatives
Oender co-operated with investigation, made early
admissions and/or voluntarily reported oending
BRIBERY
See page 45.
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
Fraud, Bribery and Money Laundering Offences Definitive Guideline 45
Eective from 1 October 2014
BRIBERY
STEP THREE
Consider any factors which indicate a reduction, such as assistance to the prosecution
The court should take into account sections 73 and 74 of the Serious Organised Crime and Police Act
2005 (assistance by defendants: reduction or review of sentence) and any other rule of law by virtue of
which an oender may receive a discounted sentence in consequence of assistance given (or oered) to
the prosecutor or investigator.
STEP FOUR
Reduction for guilty pleas
The court should take account of any potential reduction for a guilty plea in accordance with section 144
of the Criminal Justice Act 2003 and the Guilty Plea guideline.
STEP FIVE
Totality principle
If sentencing an oender for more than one oence, or where the oender is already serving a sentence,
consider whether the total sentence is just and proportionate to the overall oending behaviour.
STEP SIX
Confiscation, compensation and ancillary orders
The court must proceed with a view to making a conscation order if it is asked to do so by the prosecutor
or if the court believes it is appropriate for it to do so.
Where the oence has resulted in loss or damage the court must consider whether to make a
compensation order.
If the court makes both a conscation order and an order for compensation and the court believes
the oender will not have sucient means to satisfy both orders in full, the court must direct that the
compensation be paid out of sums recovered under the conscation order (section 13 of the Proceeds of
Crime Act 2002).
The court may also consider whether to make ancillary orders. These may include a deprivation order, a
nancial reporting order, a serious crime prevention order and disqualication from acting as a company
director.
STEP SEVEN
Reasons
Section 174 of the Criminal Justice Act 2003 imposes a duty to give reasons for, and explain the eect of,
the sentence.
STEP EIGHT
Consideration for time spent on bail
The court must consider whether to give credit for time spent on bail in accordance with section 240A of
the Criminal Justice Act 2003.
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
46 Fraud, Bribery and Money Laundering Offences Definitive Guideline
Eective from 1 October 2014
BRIBERY
Blank page
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
Eective from 1 October 2014
Fraud
Conspiracy to defraud (common law)
Cheat the public revenue (common law)
Triable only on indictment
Fraud Act 2006 (sections 1, 6 and 7)
Theft Act 1968 (section 17)
Value Added Tax Act 1994 (section 72)
Customs and Excise Management Act 1979 (section 170)
Triable either way
Bribery
Bribery Act 2010 (sections 1, 2, 6 and 7)
Triable either way
Money laundering
Proceeds of Crime Act 2002 (sections 327, 328 and 329)
Triable either way
Maximum: Unlimited ne
Most cases of corporate oending in this area are likely to merit allocation for trial to the
CrownCourt.
Committal for sentence is mandatory if conscation (see step two) is to be considered.
(Proceeds of Crime Act 2002 section 70).
CORPORATE OFFENDERS: FRAUD, BRIBERY AND MONEY LAUNDERING
Corporate Oenders:
Fraud, Bribery and Money Laundering
Fraud, Bribery and Money Laundering Offences Definitive Guideline 47
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
48 Fraud, Bribery and Money Laundering Offences Definitive Guideline
Eective from 1 October 2014
STEP ONE
Compensation
The court must consider making a compensation order requiring the oender to pay compensation for
any personal injury, loss or damage resulting from the oence in such an amount as the court considers
appropriate, having regard to the evidence and to the means of the oender.
Where the means of the oender are limited, priority should be given to the payment of compensation
over payment of any other nancial penalty.
Reasons should be given if a compensation order is not made.
(See section 130 Powers of Criminal Courts (Sentencing) Act 2000)
STEP TWO
Conscation
Conscation must be considered if either the Crown asks for it or the court thinks that it may be
appropriate.
Conscation must be dealt with before, and taken into account when assessing, any other ne or nancial
order (except compensation).
(See Proceeds of Crime Act 2002 sections 6 and 13)
CORPORATE OFFENDERS: FRAUD, BRIBERY AND MONEY LAUNDERING
See page 49.
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
Fraud, Bribery and Money Laundering Offences Definitive Guideline 49
Eective from 1 October 2014
CORPORATE OFFENDERS: FRAUD, BRIBERY AND MONEY LAUNDERING
Culpability
The sentencer should weigh up all the factors of the case to
determine culpability. Where there are characteristics
present which fall under dierent categories, the court
should balance these characteristics to reach a fair
assessment of the oender’s culpability.
Culpability demonstrated by the oending corporation’s
role and motivation. May be demonstrated by one or more
of the following non-exhaustive characteristics.
A – High culpability
Corporation plays a leading role in organised, planned
unlawful activity (whether acting alone or with others)
Wilful obstruction of detection (for example destruction of
evidence, misleading investigators, suborning employees)
Involving others through pressure or coercion (for example
employees or suppliers)
Targeting of vulnerable victims or a large number of victims
Corruption of local or national government ocials or
ministers
Corruption of ocials performing a law enforcement role
Abuse of dominant market position or position of trust or
responsibility
Oending committed over a sustained period of time
Culture of wilful disregard of commission of oences by
employees or agents with no eort to put eective systems
in place (section 7 Bribery Act only)
B – Medium culpability
Corporation plays a signicant role in unlawful activity
organised by others
Activity not unlawful from the outset
Corporation reckless in making false statement (section 72
VAT Act 1994 )
All other cases where characteristics for categories A or C
are not present
C – Lesser culpability
Corporation plays a minor, peripheral role in unlawful
activity organised by others
Some eort made to put bribery prevention measures in
place but insucient to amount to a defence (section 7
Bribery Act only)
Involvement through coercion, intimidation or exploitation
Harm
Harm is represented by a nancial sum calculated by
reference to the table below
Amount obtained or intended to be obtained
(or loss avoided or intended to be avoided)
Fraud
For oences of fraud, conspiracy to
defraud, cheating the Revenue and
fraudulent evasion of duty or VAT, harm will
normally be the actual or intended gross
gain to the oender.
Bribery
For oences under the Bribery Act the
appropriate gure will normally be the
gross prot from the contract obtained,
retained or sought as a result of the
oending. An alternative measure for
oences under section 7 may be the likely
cost avoided by failing to put in place
appropriate measures to prevent bribery.
Money
laundering
For oences of money laundering the
appropriate gure will normally be the
amount laundered or, alternatively, the
likely cost avoided by failing to put in
place an eective anti-money laundering
programme if this is higher.
General
Where the actual or intended gain cannot
be established, the appropriate measure
will be the amount that the court considers
was likely to be achieved in all the
circumstances.
In the absence of sucient evidence of
theamount that was likely to be obtained,
10–20 per cent of the relevant revenue
(for instance between 10 and 20 per
cent of the worldwide revenue derived
from the product or business area to
which the oence relates for the period
of the oending) may be an appropriate
measure.
There may be large cases of fraud or
bribery in which the true harm is to
commerce or markets generally. That may
justify adopting a harm gure beyond the
normal measures here set out.
STEP THREE
Determining the oence category
The court should determine the oence category with reference to culpability and harm.
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
50 Fraud, Bribery and Money Laundering Offences Definitive Guideline
Eective from 1 October 2014
STEP FOUR
Starting point and category range
Having determined the culpability level at step three, the court should use the table below to determine
the starting point within the category range below. The starting point applies to all oenders irrespective
of plea or previous convictions.
The harm gure at step three is multiplied by the relevant percentage gure representing culpability.
Culpability Level
A B C
Harm gure
multiplier
Starting point
300%
Starting point
200%
Starting point
100%
Category range
250% to 400%
Category range
100% to 300%
Category range
20% to 150%
Having determined the appropriate starting point, the court should then consider adjustment within the
category range for aggravating or mitigating features. In some cases, having considered these factors, it
may be appropriate to move outside the identied category range. (See below for a non-exhaustive list of
aggravating and mitigating factors.)
Factors increasing seriousness
Previous relevant convictions or subject to previous relevant
civil or regulatory enforcement action
Corporation or subsidiary set up to commit fraudulent
activity
Fraudulent activity endemic within corporation
Attempts made to conceal misconduct
Substantial harm (whether nancial or otherwise) suered
by victims of oending or by third parties aected by
oending
Risk of harm greater than actual or intended harm (for
example in banking/credit fraud)
Substantial harm caused to integrity or condence of
markets
Substantial harm caused to integrity of local or national
governments
Serious nature of underlying criminal activity (money
laundering oences)
Oence committed across borders or jurisdictions
Factors reducing seriousness or reflecting mitigation
No previous relevant convictions or previous relevant civil or
regulatory enforcement action
Victims voluntarily reimbursed/compensated
No actual loss to victims
Corporation co-operated with investigation, made early
admissions and/or voluntarily reported oending
Oending committed under previous director(s)/
manager(s)
Little or no actual gain to corporation from oending
CORPORATE OFFENDERS: FRAUD, BRIBERY AND MONEY LAUNDERING
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
Fraud, Bribery and Money Laundering Offences Definitive Guideline 51
Eective from 1 October 2014
General principles to follow in setting a fine
The court should determine the appropriate level of ne in accordance with section 164 of the Criminal
Justice Act 2003, which requires that the ne must reflect the seriousness of the oence and requires the
court to take into account the nancial circumstances of the oender.
Obtaining nancial information
Companies and bodies delivering public or charitable services
Where the oender is a company or a body which delivers a public or charitable service, it is expected
to provide comprehensive accounts for the last three years, to enable the court to make an accurate
assessment of its nancial status. In the absence of such disclosure, or where the court is not satised that
it has been given sucient reliable information, the court will be entitled to draw reasonable inferences as
to the oender’s means from evidence it has heard and from all the circumstances of the case.
1. For companies: annual accounts. Particular attention should be paid to turnover; prot before tax;
directors’ remuneration, loan accounts and pension provision; and assets as disclosed by the balance
sheet. Most companies are required to le audited accounts at Companies House. Failure to produce
relevant recent accounts on request may properly lead to the conclusion that the company can pay any
appropriate ne.
2. For partnerships: annual accounts. Particular attention should be paid to turnover; prot before tax;
partners’ drawings, loan accounts and pension provision; assets as above. Limited liability partnerships
(LLPs) may be required to le audited accounts with Companies House. If adequate accounts are not
produced on request, see paragraph 1.
3. For local authorities, re authorities and similar public bodies: the Annual Revenue Budget (“ARB”)
is the equivalent of turnover and the best indication of the size of the defendant organisation. It is
unlikely to be necessary to analyse specic expenditure or reserves unless inappropriate expenditure is
suggested.
4. For health trusts: the independent regulator of NHS Foundation Trusts is Monitor. It publishes quarterly
reports and annual gures for the nancial strength and stability of trusts from which the annual
income can be seen, available via www.monitor-nhs.gov.uk. Detailed analysis of expenditure or
reserves is unlikely to be called for.
5. For charities: it will be appropriate to inspect annual audited accounts. Detailed analysis of expenditure
or reserves is unlikely to be called for unless there is a suggestion of unusual or unnecessary
expenditure.
CORPORATE OFFENDERS: FRAUD, BRIBERY AND MONEY LAUNDERING
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
52 Fraud, Bribery and Money Laundering Offences Definitive Guideline
Eective from 1 October 2014
STEP FIVE
Adjustment of ne
Having arrived at a ne level, the court should consider whether there are any further factors which
indicate an adjustment in the level of the ne. The court should ‘step back’ and consider the overall eect
of its orders. The combination of orders made, compensation, conscation and ne ought to achieve:
• the removal of all gain
• appropriate additional punishment, and
• deterrence
The ne may be adjusted to ensure that these objectives are met in a fair way. The court should consider
any further factors relevant to the setting of the level of the ne to ensure that the ne is proportionate,
having regard to the size and nancial position of the oending organisation and the seriousness of the
oence.
The ne must be substantial enough to have a real economic impact which will bring home to both
management and shareholders the need to operate within the law. Whether the ne will have the eect
of putting the oender out of business will be relevant; in some bad cases this may be an acceptable
consequence.
In considering the ability of the oending organisation to pay any nancial penalty the court can take into
account the power to allow time for payment or to order that the amount be paid in instalments.
The court should consider whether the level of ne would otherwise cause unacceptable harm to third
parties. In doing so the court should bear in mind that the payment of any compensation determined at
step one should take priority over the payment of any ne.
The table below contains a non-exhaustive list of additional factual elements for the court to consider.
The Court should identify whether any combination of these, or other relevant factors, should result in a
proportionate increase or reduction in the level of ne.
Factors to consider in adjusting the level of ne
Fine fulls the objectives of punishment, deterrence and
removal of gain
The value, worth or available means of the oender
Fine impairs oender’s ability to make restitution to victims
Impact of ne on oender’s ability to implement eective
compliance programmes
Impact of ne on employment of sta, service users,
customers and local economy (but not shareholders )
Impact of ne on performance of public or charitable
function
CORPORATE OFFENDERS: FRAUD, BRIBERY AND MONEY LAUNDERING
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
Fraud, Bribery and Money Laundering Offences Definitive Guideline 53
Eective from 1 October 2014
STEP SIX
Consider any factors which would indicate a reduction, such as assistance to the prosecution
The court should take into account sections 73 and 74 of the Serious Organised Crime and Police Act
2005 (assistance by defendants: reduction or review of sentence) and any other rule of law by virtue of
which an oender may receive a discounted sentence in consequence of assistance given (or oered) to
the prosecutor or investigator.
STEP SEVEN
Reduction for guilty pleas
The court should take into account any potential reduction for a guilty plea in accordance with section
144 of the Criminal Justice Act 2003 and the Guilty Plea guideline.
STEP EIGHT
Ancillary Orders
In all cases the court must consider whether to make any ancillary orders.
STEP NINE
Totality principle
If sentencing an oender for more than one oence, consider whether the total sentence is just and
proportionate to the oending behaviour.
STEP TEN
Reasons
Section 174 of the Criminal Justice Act 2003 imposes a duty to give reasons for, and explain the eect of,
the sentence.
CORPORATE OFFENDERS: FRAUD, BRIBERY AND MONEY LAUNDERING
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
54 Fraud, Bribery and Money Laundering Offences Definitive Guideline
Eective from 1 October 2014
Fine bands and community orders
FINE BANDS
In this guideline, fines are expressed as one of three fine bands (A, B or C).
Fine Band
Starting point (applicable to all oenders) Category range (applicable to all oenders)
Band A
50% of relevant weekly income 25 – 75% of relevant weekly income
Band B
100% of relevant weekly income 75 – 125% of relevant weekly income
Band C
150% of relevant weekly income 125 – 175% of relevant weekly income
COMMUNITY ORDERS
In this guideline, community sentences are expressed as one of three levels (low, medium and high).
An illustrative description of examples of requirements that might be appropriate for each level is provided
below. Where two or more requirements are ordered, they must be compatible with each other.
Low Medium High
In general, only one requirement
will be appropriate and the length
may be curtailed if additional
requirements are necessary
More intensive sentences which
combine two or more requirements
may be appropriate
Suitable requirements might include
one or more of:
• 40 – 80 hours unpaid work;
• prohibited activity requirement;
• curfew requirement within the
lowest range (for example, up to
12 hours per day for a few weeks)
Suitable requirements might include
one or more of:
• greater number of hours of
unpaid work (for example,
80 – 150 hours);
• prohibited activity requirement;
• an activity requirement in the
middle range (20 – 30 days);
• curfew requirement within the
middle range (for example, up to
12 hours for two to three months)
Suitable requirements might include
one or more of:
• 150 – 300 hours of unpaid work;
• activity requirement up to the
maximum of 60 days;
• curfew requirement up to 12
hours per day for 4 – 6 months;
• exclusion order lasting in the
region of 12 months.
The tables are also set out in the Magistrates’ Court Sentencing Guidelines which includes further
guidance on nes and community orders.
Annex
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
Fraud, Bribery and Money Laundering Offences Definitive Guideline 55
Eective from 1 October 2014
Notes
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
56 Fraud, Bribery and Money Laundering Offences Definitive Guideline
Eective from 1 October 2014
Notes
For reference only.
Please refer to the guideline(s)
on the Sentencing Council website:
www.sentencingcouncil.org.uk
