If a student admitted to cheating, while they would face academic disciplinary action (i.e. receiving a failing or low grade), they would not be brought up to the administrative office that deals with issues of academic integrity, and therefore would not face consequences like expulsion or being on official academic probation.
However if a cheating student decided to risk it and not admit their guilt, they were at risk of a potentially even greater degree punishment. The course staff would run all students code through a piece of software to detect similarities between each other, as well as online solutions. Students who were flagged by this software would then have their code hand-checked by at least one course staff, who would make a judgement call as to whether it seemed like cheating.
I found this policy quite interesting. As a former high school teacher, I've certain encountered teaching in my own classes, and have historically oscillated between taking a very harsh stance, or perhaps an overly permissive one.
The one taken by the lecturers of this course offered a "second chance" to cheaters in a way I hadn't seen before.