POL00123376 - Draft POL Enforcement and Prosecution Policy Version 1.0.

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POL00123376

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POST OFFICE LIMITED
ENFORCEMENT AND PROSE\ ION POLICY
FOR ENGLAND. WALE:
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TABLE OF CONTENTS
Section Page
a. Introduction 3
2. Scope 4
3. Aims and Objectives 5
4. Available Enforcement Options 6
5. Enforcement Action other than Criminal Enforcement Action 8
6. General Principles of Criminal Enforcemen: 10
7. Criminal Enforcement 12
8. Decision Making 14
g. Recovery: Confiscation, Compensa 15
ao. Review 16
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INTRODUCTION

Post Office Ltd (“POL”) is a public body accountable both to the Government and

to Parliament, and ultimately to the general public.

It provides a wide range of vital services to the public through its 11,800 branches
across the UK. Because POL’s activities provide communities nationwide with
access to postal, banking and other essential services, it serves an important

public purpose.

An important function of that purpose is to provide affordable and reliable
services to the public through its retail operation. Criminal offences against POL's
business in particular theft, fraud and false accounting inevitably result in
increased cost to the taxpayer, adverse impact on its customers, and they

challenge the viability of the services POL provides.

POL is committed to reducing criminal offending against its business in two

ways:

1.4.49 Through the establishment and development of a Business Improvement
Programme, and
1.4.2 By investigating offences, and by taking such enforcement action as POL

considers appropriate in the circumstances of the case.

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2. SCOPE

221 Following its separation from Royal Mail Group on 1 April 2012, POL has
retained its investigative and prosecution function. In England and Wales, POL

conducts investigative and prosecuting functions.

2.2 In Scotland, POL's representative agents report alleged criminal offending to
the Crown Office and Procurator Fiscal Service.* In¢Northern Ireland, POL
Security Managers report allegations of criminal offending to the Public

Prosecution Service.

2.3 This policy is intended to explain the,approach that POL will adopt in dealing

with allegations of crime committed against,its business in England and Wales.
2.4 This policy is intended to apply equally to POL employees, sub-contractors,

contractors, agents and customers aswell as to those who have no

formal relationship withPOL.

2 The Crown Office and Procurator Fiscal Service recognises POL as a Special Reporting Agency

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3. AIMS AND OBJECTIVES

3.1 The general aims of this policy are to:

3.1.1 Ensure that POL takes a fair, consistent and proportionate approach to
criminal enforcement

3.1.2. Provide POL decision-makers with guidelines enabling them to reach
enforcement decisions, and

3.1.3. Inform the public and our commercial partners ofthe general principles

POL will use to guide its enforcement decisions.

3-2. The general objectives of this policy are to:

3.2.1 Preserve and maintaimthe viability and,integrity of the services POL
provides to the public, which criminal activity compromises

3.2.2. Deter the commission of criminal offendingagainst POL’s business

3.2.3. Protect POL’s physical and financial assets, and

3.2.4 Recover monetary losses and assets resulting from criminal conduct.

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he AVAILABLE ENFORCEMENT OPTIONS

4.1 Informal action, disciplinary action and civil action are enforcement options open
to POL, and they will be carefully considered before any criminal enforcement
action is taken.

4.2 The choice of enforcement option will depend on the seriousness of the
offending as reflected by (but not limited to) the quantum of the shortage or
losses alleged, the particular vulnerability of the victim, the impact of the alleged
offending on the integrity and reputation of POL and the services it provides to
the community, the past history and attitude of the offender, as well as the
likelihood of non-compliance with, and the likely effectiveness or consequences
of, the non-criminal enforcement options available.

4.3 In particular, therefore, in choosing the right enforcement option, POL will
consider the seriousness of the offence,,having regard to:

e The culpability of the offender

. The extent of the harm done

. Theextent of any shortage or losses to POL

. The particular vulnerability of the victim (e.g. by age, infirmity or physical
or mental disability etc.)

. The duration, pattern and sophistication of the offending

. The nature and extent of any breach of trust

. Other public or social factors

4.4 POLwill also have regard to factors such as:

. The offender's age, physical or mental condition, and his general
character and reputation
. Previous convictions or other evidence of previous offending or default
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. Any voluntary disclosure or confession made by the offender
. Any repayment of losses
. Any unreasonable delay in reaching an enforcement decision

4.5 Provided always, where the nature of the offence is so serious or the shortage or
loss so substantial that enforcement action other than criminal action is
inadequate and might lead to delaying criminal investigation and enforcement,

POL will move expeditiously to consideration of criminalenforcement action.

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ENFORCEMENT ACTION OTHER THAN CRIMINAL ENFORCEMENT ACTION

Informal Action will, in the case of a minor offence, usually take the form of a
letter or a report sent to the offender but it may also include a verbal warning.
The individual or business will be expected to act upon such informal action and,
in the event they fail to do so, this may result in criminal enforcement action

being taken.

Examples of when informal action might be appropriateyinclude circumstances

where:

. The offence is not deemed serious enough tojustify criminal enforcement
action

. An early admission of guilt is made

. Action has been taken by the offender to repay the shortage or loss or
otherwise to make amends

. The pastyhistory of the individual or the business suggests that informal

action will act as a deterrent against future offending

Disciplinary Action may be deemed necessary by POL in accordance with POL
policies and employment contracts and considered alongside criminal or civil

enforcement action.

Civil Action will be considered where the seriousness of the offence or the
attitude of the offender means that POL does not consider formal action is

required.

Civil proceedings may be taken in parallel with, or in place of, criminal
enforcement action and may be used to vary or terminate a contract, recover

monies stolen from POL or seek financial compensation for other wrongdoing.

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Where civil proceedings are undertaken in addition to formal criminal action,

POL will not seek to recover twice.

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GENERAL PRINCIPLES OF CRIMINAL ENFORCEMENT

Where the decision is made to pursue criminal enforcement, POL will apply the
Code for Crown Prosecutors issued by the Director of Public Prosecutions,” as
well as the further considerations set out in this policy document. The decision
whether to prosecute in any individual case will be taken with due diligence and

expedition.

POL will have regard to the Human Rights Act 1998 and the European Convention on
Human Rights.

POL will comply with:

. Its disclosure obligationsjunder the Criminal)Procedure and Investigations Act
1996 (and the Code of Practice issued thereunder)

. The Protocol for the Control and Managementof Unused Material in the Crown
Court

. The Attorney General's guidelines on Disclosure and on the Disclosure of
Digitally-Stored Material

° The Criminal Procedure Rules and the Criminal Practice Directions

. The Attorney General's guidelines on the Acceptance of Pleas

Each)case will) be approached according to general principles of fairness,

consistency and proportionality.

Fairness and consistency does not mean a uniformity of approach but adopting
a similar approach in similar circumstances to achieve similar ends, but taking

into account the particular circumstances of each case.

? Currently the 7" Edition, issued January 2013. Go to www.cps.gov.uk

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6.6 Proportionality means relating enforcement to the offence alleged so that POL
enforcement action will be proportionate to the seriousness of the offence, the
culpability of the offender, the harm caused by the offending, the impact of the
offending on the community and on the services POL provides, and the costs of

investigation and prosecution as weighed against the likely outcome.

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CRIMINAL ENFORCEMENT ACTION

Prosecution will be brought where:

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The alternative enforcement options are considered to be inadequate
The evidence passes the two-stage test for prosecution set out in the
Code for Crown Prosecutors, and

The circumstances of the offending are such that prosecution is justified.

To pass the two-stage test for prosecution set out in the. Code for Crown

Prosecutors (“the Full Code test”) there must be:

Evidence sufficient to provide a realistic prospect of conviction (“the
evidential stage”), and
The prosecution must be in thepublic interest (“the public interest

stage”).

Where there is a realistic prospect of conviction and prosecution is in the public

interest, the circumstances that justify a prosecution may include:

Where the offence is particularly egregious, for instance where the
conduct has resulted in a significant or substantial financial shortage or
loss

Where the offence has or is likely to have an adverse impact on POL's
business, brand, image or reputation

Where the victim of the offence was particularly vulnerable (e.g. by age,
infirmity or physical or mental disability etc.)

Where the offence involves a serious breach of trust

Where the offending (or the concealment of the offending) is
sophisticated, involves multiple transactions or was committed over a

lengthy period of time

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. Where there is a history of similar past offences or misconduct

. Where an innocent party has been falsely blamed or accused

74 POL will also consider the following circumstances when deciding whether or

not to prosecute:

. The particular circumstances of the offender

. The quantum of the shortage or loss to POL

. Whether or not some or all of the shortage or loss has been (or will
realistically ever be) repaid to POL

. The deterrent effect of a prosecution on the offender and on others

. Other factors that may militate‘against prosecution

. The cost of prosecution relative to thelikely penalty on conviction and/or

the likely recovery of any’shortage or loss

75 Once the decision to prosecute, is¢taken, POL will keep the case under
continuous review. Where it appears to POL that the case no longer meets the
evidential stage of the Full Code test, or concludes that prosecution no longer
meets the publiqinterest stage of the Full Code test, then it will discontinue the

case without undue delay.

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DECISION MAKING

The decision to authorise prosecution will be taken by the senior criminal lawyer
in the Post Office Legal and Compliance Team ("POLCT") acting on advice from

external lawyers.

In the event that POL’s Head of Security Operations disagrees with the POLCT
senior criminal lawyer's decision, POL’s General Counsel will make the final

decision whether or not to authorise prosecution.

Prosecutions in the Magistrates’ Court and the Crown Court will beconducted by

POL’s external lawyers or appointed agents.

Criminal investigations will be;conducted by POL’s Security Operations Team in

accordance with the Conduct of CriminahInvestigations Policy.3

The decision to prosecute will be taken openly and transparently. The decision
and the underlying reasons for it will be recorded in writing and retained by POL

until the expiry of a period of 6 years following the conclusion of the case.

3 Effective from 29 August 2013

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9. RECOVERY: CONFISCATION, COMPENSATION AND COSTS

9.1 POL will in every case seek to recover any shortage or loss resulting from the
offender's criminal conduct, as well as the costs of prosecution, subject to the

general principles of fairness, consistency and proportionality.

9.2 In appropriate cases, POL will seek to obtain orders for:

. Restraint against assets owned or controlled by suspects,

. Confiscation under the provisions of the Proceeds of Crime Act 2002,
. Compensation, and

. Costs covering the investigation and prosecution, or

. Any combination of such orders

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10. REVIEW

10.1 This policy supersedes any previous POL criminal enforcement action or

prosecution policy.

10.2 This policy will be reviewed annually.

Signed: Name:

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