Dawn Raids : Criminal and Regulatory Investigations 

Criminal and Regulatory Investigative authorities such as the SFO, HMRC, NCA, FCA and the Police carry out Dawn Raids, without warning, at business and personal premises, often early in the morning (hence the name) to seize and secure evidence to further their investigations.    

How will this impact on me, my business, my employees and how can MSB Criminal Defence and Regulatory lawyers help?  

 Inevitably a Dawn Raid is stressful and frightening. Such will have a detrimental impact on you, your business, and your staff.  MSB Expert Criminal and Regulatory Lawyers can help you manage such an event. A Dawn Raid can occur at any business, large or small, and in larger businesses in multiple locations. These raids place considerable pressures on businesses which need to continue to function and operate after they have occurred. Computers, laptops, phones, files, and documents may be removed.  

Should I and my business be prepared for a Dawn Raid? It is is vitally important to understand the purpose behind a Dawn Raid and assess its consequences:  

 Dawn raids are unannounced visits by Regulatory bodies or Criminal law enforcement agencies to gather evidence as part of an ongoing investigation into suspected non-compliance with Regulatory legal obligations or suspected criminal activity.  

Who can launch a dawn raid on my business?  

 Different investigative and regulatory bodies will have different objectives and powers.    

• Police – for a multitude of potential offences;  

• Serious Fraud Office (SFO)- Serious Fraud, Bribery and Corruption;  

• National Crime Agency (NCA) – for Serious Fraud, Trafficking, Money Laundering and Terrorism offences;  

• HMRC – for Tax Evasion and VAT related investigations;  

• Financial Conduct Authority (FCA) – for Financial Services Misconduct and Insider Trading;  

• Competition and Markets Authority (CMA) – for Anti-Competitive practices and Market Abuse;  

• Local Authority Trading Standards Officers – for suspected breaches of consumer and trading legislation and in some instances animal welfare.  

• Environment Agency – for breaches in environmental regulations such as operating a business without the correct permits or licences, or suspected pollution incidents.   

Do Investigators  need a Warrant to enter my premises? MSB Crime and Regulatory Solicitors will advise you and your business:  

Not necessarily. Investigators can enter your premises without a Warrant, but their operational powers will be reduced, with no power to search the premises, nor can they use force when entering. Investigators may require individuals to state where documents can be found, produce them, and explain them where they are relevant to the investigation. Investigators can require individuals to preserve documents without interference.  

However, if a Warrant is obtained investigators can use reasonable force to obtain entry, search the premises, seize original documents, and take reasonable steps to preserve and prevent interference with documents.    

 Can MSB Criminal and Regulatory Expert Lawyers advise how we prepare for this?  

 All businesses should have a “Response to Criminal and Regulatory Investigation” policy. MSB skilled and experienced Crime and Regulatory teams can advise as to putting a policy in place to guide and manage matters for you, your business and staff in the event of any Criminal or Regulatory investigation. Business owners and managers need to know how to deal with investigations and determine how a business can continue to function throughout the investigation, which may be long running. It is important to access MSB Solicitors for specialist and expert advice.  

If unprepared you and your business will face uncertainty as to what to expect and how to respond.  Investigations will cause concern and embarrassing for the business and its staff.  Staff might be arrested and interviewed at business premises or at home.  It is a difficult and worrying time for all and complex investigations can run for a considerable length of time.  No action should be taken which may compound these difficulties or even amount to the commission of an offence.  

How should Investigators be dealt with when they arrive?  

It is important that your staff know what they are required to do and what your rights are.  If you fail to comply with your legal obligations during a dawn raid, then there may be civil or criminal sanctions.  Significant fines can be imposed. An inappropriate view of the business may result. It is also important to ensure that the business’ rights are respected and the limitations on the regulator’s powers are not exceeded. Ideally, with organisation and planning, the impact of the raid can be contained to minimise the impact on the business. Reputation needs to be protected and preserved.  

Sensible business planning involves amongst other steps:   

1. Nominating a responsible individual, preferably a senior staff member or legal officer, to be the point of contact with Investigators during an investigation. They should accompany but not obstruct Investigators during the search, take detailed notes and ensure that privileged or confidential information is identified and handled properly.  

1. When the Investigators arrive at the premises, ask to see the Warrant or the Notice of the Investigation. Check the agency concerned and the details of the premises appearing on the document. Verify the scope of the search and the documents that they wish to obtain. Mention any concerns but continue to be cooperative and non-obstructive. Obstructing an Investigation can be problematic and often lead to sanctions.  Any issues can be properly dealt with later.  

1. Identify and protect privileged documents, for example, communications with legal counsel are protected from seizure. Such documents should be identified and legal privilege asserted over them.  If there is any dispute they should still be set aside for independent review.   

1. It is important to maintain a detailed record of all documents, files and items removed during the raid. The Investigating officers are required to provide an inventory of what they seize but have your own record including taking copies of seized documents wherever possible.  Similarly, keep a log of any digital devices or hard drives removed.  This will help assess the scope of the material removed and ensure that nothing outside of the scope of the Warrant is taken.  

1. The investigating officers may look to seize laptops, phones, or entire servers. Be prepared therefore to ensure that access to data is controlled and that all critical information is backed up beforehand.   

 What about employees? Will they be spoken to?  

Investigating officers will ask employees questions.  This will be either informally or through a formal interview process.  Whilst cooperation is a requirement, there is no requirement to volunteer unnecessary information. There is the right to legal representation if interviewed under caution.  

What would be considered as obstructing the investigation?  

• Obstructing an officer in carrying out an on-site investigation, regardless of whether they have a Warrant;  

• Destroying or falsifying a document requested by a regulatory body;  

• Providing false or misleading information to the investigative authority;  

• Failing to comply with a requirement imposed by an investigating officer.  

 Should we do anything when investigators have gone? 

Hold a debrief with your legal team- MSB can assist- to review what happened during the raid and what was seized.  If copies of seized documents were not taken at the time, the agency can be contacted with a request for the same. Check whether legal privilege might have been breached. If IT equipment was taken, then look to recover critical functionality.  Establishing what the investigators were looking for may help determine the overall position and help prepare for the next stage of legal defence.  

MSB can create your Criminal and Regulatory Investigations policy setting out what staff should do in the event of a raid or investigation. MSB Solicitors provide immediate expert assistance when a Dawn raid occurs, or at the commencement on a Criminal or Regulatory Investigation.