Standard Bank Plc has entered into the first deferred prosecution agreement in the United Kingdom.

The agreement was approved by Lord Justice Leveson at Southwark Crown Court, sitting at the Royal Courts of Justice.

Standard Bank was the subject of an indictment alleging failure to prevent bribery contrary to the 2010 Bribery Act.

Pursuant to the agreement, the indictment was immediately suspended.

Standard Bank will pay $25.2 million and will be required to pay the Government of Tanzania an additional $7 million in compensation.

The bank has also agreed to pay the Serious Fraud Office’s costs of $495,000 in relation to the investigation and subsequent resolution of the agreement.

Standard Bank also agreed to continue to cooperate fully with the Serious Fraud Office and to be subject to an independent review of its existing anti-bribery and corruption controls, policies and procedures regarding compliance with the Bribery Act 2010 and other applicable anti-corruption laws.

The bank is required to implement recommendations of a “independent reviewer”  — Price Waterhouse Coopers LLP.

“This landmark DPA will serve as a template for future agreements,” said SFO director David Green. “The judgment from Lord Justice Leveson provides very helpful guidance to those advising corporates. It also endorses the SFO’s contention that the deferred prosecution agreement in this case was in the interests of justice and its terms fair, reasonable and proportionate. I applaud Standard Bank for their frankness with the SFO and their prompt and early engagement with us.”

The alleged bribery was laid out in a statement of facts.

The suspended charge related to a $6 million payment by a former sister company of Standard Bank, Stanbic Bank Tanzania, in March 2013 to a local partner in Tanzania, Enterprise Growth Market Advisors (EGMA).

The Serious Fraud Office alleges that the payment was intended to induce members of the Government of Tanzania, to show favour to Stanbic Tanzania and Standard Bank’s proposal for a US$600 million private placement to be carried out on behalf of the Government of Tanzania.

The placement generated transaction fees of $8.4 million, shared by Stanbic Tanzania and Standard Bank.

In April, Standard Bank’s lawyers at Jones Day reported the matter and the Serious Fraud Office instructed Jones Day to begin an investigation and to disclose its findings to the SFO.

The resulting report was sent to the SFO on July 21 2014.

The SFO reviewed the material obtained and conducted its own interviews.

Subsequently, the director of the SFO considered that the public interest would likely be met by a deferred prosecution agreement with Standard Bank and negotiations were commenced.