What is white collar crime?

The term ‘white collar crime’ refers to offences committed by professionals in business or the government, often involving concealment, deception or a breach of trust rather than threatening or using physical force.

What offences does white collar crime include?

White collar crime includes a wide variety of offences.  These are common examples:

  • Money laundering

The process by which the proceeds of crime are converted into assets which appear to have a legitimate origin, so that they can be retained permanently or recycled into further criminal enterprises

  • Market manipulation

Deceiving investors by controlling or artificially affecting the price of securities

  • City cartels

Serious and damaging forms of anticompetitive agreements in respect of the production or supply of products or services: this includes bid rigging, direct or indirect price fixing, and sharing customers or markets

  • Securities fraud

Stock manipulation, misstatements on a public company’s financial reports and lying to corporate auditors

  • Embezzlement

Commonly found in workplace environments, this occurs when an individual entrusted with managing another’s money or property misappropriates some or all of it for personal benefit

  • Bribery

Offering, promising or giving a financial or other advantage to a person as an inducement or reward for performing a relevant function or activity improperly

  • Corruption

Offering, giving, soliciting, or accepting a bribe or reward that may persuade someone to act contrary to the interests of the organisation to which they belong

How much white collar crime is there in the UK?

In 2022, 64% of UK businesses encountered fraud, corruption, or other financial crimes. This was a significant increase from 56% in 2020 and 50% in 2018.

The global average is 46%.  On this measure, the UK is second only to South Africa in the prevalence of white collar crime.

Other surveys have indicated that in the UK around £190 billion is lost to fraud each year. 74% of this loss occurs in the private sector and 21% in the public sector.  The remaining 5% is made up of losses suffered by individuals.

What are the possible sentences for white collar crimes?

The length of sentence available, and the basis on which a white collar crime is tried, varies by type of offence.

A fraud charge can be tried on indictment only, meaning it is in the most serious offence category. Those convicted can face a maximum of 10 years custody.  A lesser sentence can range from a discharge up to 8 years in custody.

  • Money laundering

A money laundering charge is suitable for trial at either the Magistrates Court or the Crown Court. A money laundering charge will be heard at the Magistrates Court initially, with the Bench deciding whether the case can remain in their jurisdiction for trial or sentence. If the Bench decide that the case is too serious, or that their powers are not suitable to try the case, they can choose to send the case to the Crown Court. A defendant can also elect to have their trial in the Crown Court if they want to. The maximum sentence is 14 years custody.  A lesser sentence can range from a Band B fine up to 13 years custody.

  • Bribery

A bribery charge is also suitable for trial at either the Magistrates Court or the Crown Court. Those convicted can face a maximum of 10 years custody.  A lesser sentence can range from a discharge up to 8 years in custody.

What defences are available if someone is charged with a white collar crime?

These are possible defences:

  • Lack of intent

In fraud cases, a conviction can be secured only if dishonesty is proven.  If it can be shown that there was no dishonest intent or the act was accidental, this can be used as a strong defence.

  • Duress or coercion

If it can be shown that the accused was forced or compelled to commit white collar crime against their will, this can be used as a defence. It must be shown that threats were being made to the point where the accused was left with no other choice but to commit such acts.