Corporate Crime & Compliance UK

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Assange Appeal May Put US Constitution In UK Crosshairs

Julian Assange's latest appeal, in which he claims he would be denied free speech protection if he is put on trial in the U.S., could break new ground in extradition cases and end up having to be decided by Britain's highest court, legal experts say.
May 22, 2024
Property Transfer For Tax Break Not Dishonest, UK Court Says

Two liquidated London real estate companies failed to convince the United Kingdom Court of Appeal that their former director behaved dishonestly by transferring their holdings to Jersey trusts for less than market value to obtain a tax advantage, according to a judgment released Wednesday.
May 22, 2024
DLA Piper Beefs Up White Collar Bench With Former SFO Atty

After leaving her government post in March, one of the most senior officials at the U.K.'s Serious Fraud Office, Judy Krieg, has found a home at DLA Piper LLP as a partner in its Washington, D.C. office, the firm announced Wednesday.
May 22, 2024
Solicitor Fails To Nix Fake-Employee Fraud Conviction

A solicitor on Wednesday lost her bid to overturn her conviction for pocketing the salary of a fake employee, with a London appellate court ruling her conviction was not unsafe after the solicitor's counsel had argued the trial judge failed warn the jury a witness' evidence should be handled cautiously.
May 22, 2024
Ex-Goldman Banker Gets Contempt Sentence Suspended

A London appellate court on Wednesday chose "the road of mercy rather than justice" and suspended a prison sentence for a former Goldman Sachs banker who breached court orders to hand over information concerning the financial assets of the wife of an imprisoned Turkish politician.
May 22, 2024
Hilco Exec Wins £296K After Being Sacked For Whistleblowing

A tribunal has awarded a former Hilco Capital Ltd. HR director almost £296,000 ($377,000) in compensation after she was unfairly sacked for blowing the whistle over alleged banking irregularities.
May 22, 2024
UK Gov't Calls Elections For July 4 Despite Poor Polls

Prime Minister Rishi Sunak on Wednesday called an early general election to be held on July 4, advancing the electoral timetable even though his Conservative Party lags decisively behind the opposition Labour Party.
May 22, 2024
City Group Warns Financial Fraud Still Major Problem

A City trade body for financial institutions said Tuesday that payment fraud remains a major problem, with criminals stealing more than £1 billion ($1.27 billion) in 2023, shifting into growth areas such as mobile banking.
May 22, 2024
Ex-Post Office Boss Didn't Know Business Prosecuted People

Former Post Office boss Paula Vennells denied on Wednesday that she knew the organization conducted its own prosecutions, telling the inquiry into its wrongful prosecution of innocent sub-postmasters she became aware of the power to prosecute only several years after she joined.
May 22, 2024
Swiss Gov't Adopts Proposals For Tougher AML Laws

Switzerland on Wednesday approved a new anti-money laundering framework that will introduce a register in which companies and other legal entities in the country will have to disclose information on their beneficial owners in a major shift in its anti-money laundering rules.
May 22, 2024
Chinese Woman Faces Oct. Criminal Crypto Possession Trial

A Chinese woman and her alleged accomplice are scheduled to stand trial in London in October, charged with criminal possession and transfer of cryptocurrency, a judge said Wednesday.
May 22, 2024
BT Fined £2.8M For Failing EE, Plusnet Customers

The media watchdog said Wednesday it has fined telecoms group BT £2.8 million ($3.6 million) for failing to provide enough information to more than a million customers of mobile phone network EE and internet service provider Plusnet.
May 22, 2024
Citigroup Fined £61.6M For Trading Systems Failings

Two finance regulators said Wednesday they have fined Citigroup Global Markets Ltd. a total of £61.6 million ($78.4 million) for failures in trading systems that led to the lender mistakenly selling $1.4 billion in equities into European markets.
May 21, 2024
Leigh Day Considering Legal Action Over UK Blood Scandal

Personal injury and human rights firm Leigh Day said Tuesday that it was considering legal action against the U.K. government on behalf of clients who were given infected blood transfusions over three decades, after a government minister gave a speech outlining how victims will be compensated.
May 21, 2024
EU Gives Final Approval To World's First AI Rulebook

European Union law negotiators gave the final green light on Tuesday to the first worldwide rules on artificial intelligence across most sectors including financial services, classifying its usage in bank lending risk assessments or insurance underwriting for EU citizens as high-risk.
May 21, 2024
Post Office Official Told MP About IT Bugs Ahead Of Report

A former Post Office senior official conceded she was the "bearer of bad news" by ensuring an MP was told of bugs in the IT system used to wrongly prosecute innocent people, as she gave evidence to an inquiry Tuesday.
May 21, 2024
I Am An Honest Man, British Trader Tells £1.4B Fraud Trial

Sanjay Shah, a former hedge fund owner who is accused of defrauding Denmark's tax authority out of £1.4 billion ($1.8 billion), told a London court on Tuesday that he is an "honest man" who traded using a legal "loophole."
May 21, 2024
Finance Pros 'Too Afraid' To Blow Whistle On Fraud

More than three-quarters of finance professionals in the U.K. stayed silent after spotting or suspecting internal fraud in their workplaces, a survey published on Tuesday showed, with nearly half saying they feared a backlash.
May 21, 2024
Ex-Insurance Exec's Wife Denies Knowledge Of Illegal Money

The wife of a former executive at Gable Insurance has denied cashing in on unauthorized payments from her husband who, the Liechtenstein insurer alleges, siphoned off millions of pounds from the company to accounts he had links to.
May 21, 2024
Prince Harry Fails To Drag Rupert Murdoch Into Privacy Claim

Prince Harry and others suing the U.K. arm of Rupert Murdoch's News Corp. failed on Tuesday to drag the media mogul into their claim as a London judge refused to expand their case to include allegations that he was part of an alleged cover-up.
May 21, 2024
Hayes Gets Lifeline In Bid To Overturn Libor Conviction

An English appellate court on Tuesday opened the door for two traders convicted of manipulating benchmark interest rates to appeal to the U.K.'s top court but said that the justices must decide whether to hear the case.
May 20, 2024
Arbitrator In $14.9B Malaysia Case Can't Nix Contempt Ruling

Embattled arbitrator Gonzalo Stampa has lost an appeal challenging his conviction in Spain for contempt of court after he ordered Malaysia to pay $14.9 billion to the heirs of the last sultan of Sulu in an unusual, high-stakes arbitration stemming from a 19th-century land deal.
May 20, 2024
Autonomy CEO Reaped $516M From HP Acquisition, Jurors Told

Ex-Autonomy CEO Michael Lynch took home more than $516 million from the software company's $11.7 billion sale to HP, an FBI agent testified Monday as the government's last witness in a trial over allegations Lynch duped HP into overpaying to buy the company.
May 20, 2024
SFO Seizes Cash In Bank Account Linked To Nigerian Bribery

Britian's anti-corruption agency has seized more than £36,000 ($46,000) from the former managing director of an African state-owned banknote printing company after prosecutors traced the money to a bribery scheme.
May 20, 2024
Barristers Blast Lack Of Data As Remote Hearings Decline

The Bar Council on Monday reported a "significant and steep decline" in the number of remote court hearings taking place since the peak of COVID-19 and condemned the "staggering" lack of data available to assess their effectiveness.
May 20, 2024
Collapsed Firm Escapes Fine For Making Unapproved Claims

The solicitors' watchdog for England and Wales on Monday waived a £65,300 ($83,000) fine for a shuttered law firm that submitted claims without clients' approval, scrapping the penalty to safeguard the outfit's creditors.

Expert Analysis

'Debanking' Complaints Highlight Need For Flexibility In AML

The House of Commons' Treasury Committee's concerns about bank account closures have highlighted certain counterproductive features of anti-money laundering laws, and the review offers the opportunity for a more flexible approach, says John Binns at BCL Solicitors.
Mitigating Incarceration's Impacts On Foreign Nationals

Sentencing arguments that highlighted the disparate impact incarceration would have on a British national recently sentenced for insider training by a New York district court, when compared to similarly situated U.S. citizens, provide an example of the advocacy needed to avoid or mitigate problems unique to noncitizen defendants, say attorneys at Lankler Siffert.
How Sustainability Directive Will Contribute to EU Regulation

The EU Sustainability Directive, in potentially enhancing certain obligations and setting a new benchmark for environmental and human rights due diligence practices, is a significant piece of legislation that will likely support the broader legal framework of other laws in a developing legal puzzle, say Rebecca Chin and Silke Goldberg at HSF.
Experian Ruling Helps Cos. Navigate GDPR Transparency

In Information Commissioner v. Experian, the Upper Tribunal recently reaffirmed the lawfulness of the company's marketing practices, providing guidance that will assist organizations in complying with the GDPR’s transparency obligations, say lawyers at Jenner & Block.
Clarity Is Central Theme In FCA's Greenwashing Guidance

Recent Financial Conduct Authority guidance for complying with the U.K. regulator's anti-greenwashing rule sends an overarching message that sustainability claims must be clear, accurate and capable of being substantiated, say lawyers at Cadwalader.
What The EU Sustainability Directive Will Mean For Companies

The European Parliament’s recent approval of the landmark Corporate Sustainability Due Diligence Directive provides welcome clarity for small and midsize enterprises regarding human rights and environmental due diligence expectations, forming part of a growing pressure on companies around the world to operate ethically and sustainably, say lawyers at Jenner & Block.
What Can Be Learned From CMA's Green Claims Investigation

The Competition and Markets Authority's recent investigation into retailers' allegedly misleading environmental claims demonstrates that all consumer-facing businesses must exercise caution and ensure their green credentials are genuine, say Charlotte Kong and Stephen Sidkin at Fox Williams.
The Art Of Corporate Apologies: Crafting An Effective Strategy

Public relations challenges often stop companies from apologizing amid alleged wrongdoing, but a recent U.K. government consultation seeks to make this easier, highlighting the importance of corporate apologies and measures to help companies balance the benefits against the potential legal ramifications, says Dina Hudson at Byfield Consultancy.
AI Tools Could Enhance UK Gov't Public Services Strategy

The government’s recently announced intention to pilot artificial intelligence tools in routine policy work is part of a wider strategy to revolutionize the delivery of public services, and could improve productivity and create efficiencies, provided it is mindful of the potential risks involved, say attorneys at Akin.
Taking Stock Of The Latest Criminal Court Case Statistics

The latest quarterly statistics on the type and volume of cases processed through the criminal court illustrate the severity of the case backlog, highlighting the need for urgent and effective investment in the system, say Ernest Aduwa and Jessica Sarwat at Stokoe Partnership.
ICO Data Protection Guidance Offers Clarity On Fining Powers

New guidance from the Information Commissioners' Office is designed to offer transparency about its fining powers, and, combined with the office's wide-ranging enforcement authority, clearly intends to ensure breaching companies concentrate on the external harm they cause and not only internal changes, say Robert Allen and Amelia Handoll-Clark at Simmons & Simmons.
Hugh Grant Case Raises Questions About Part 36 Offers

Actor Hugh Grant's recent decision to settle his privacy suit by accepting a so-called Part 36 offer from News Group — to avoid paying a larger sum in legal costs by proceeding to trial — illustrates how this legal mechanism can be used by parties to force settlements, raising questions about its tactical use and fairness, says Colin Campbell at Kain Knight.
Investment Security Act Fine-Tune May Help Businesses

Although the government’s recent response to feedback on the National Security and Investment Act regime makes it clear that its approach is one of fine-tuning and substantial reforms will have to wait, there is still room to ease the burden on businesses by issuing guidance and refining the terms of mandatory area definitions, say lawyers at Linklaters.
How New FCA Rules Strengthen Borrower Protections

The Financial Conduct Authority’s recently published final rules, aimed at strengthening protections for borrowers in financial difficulty by regularizing good practices across the industry, put its previous guidance on a permanent footing and send a clear message to firms that this issue remains a regulatory priority, say James Black, Julie Patient and Mark Aengenheister at Hogan Lovells.
How Cos. Can Prepare For EU's Forced Labor Regulation

Before a new European Union regulation takes effect banning products made with forced labor from the internal market, economic operators will need to get their supply chain compliance functions ready, familiarizing themselves with international standards and case law, say Vassilis Akritidis and Jean-Baptiste Blancardi at Crowell & Moring.