Corporate Crime & Compliance UK

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ENRC Settlement Shows SFO Ready To Draw Line Under Past

The Serious Fraud Office's recent settlement ending litigation with Eurasian Natural Resources Corp. over alleged misconduct by its officials sidesteps weeks of awkward testimony to free the agency to pursue its growing caseload while drawing another line under its blighted investigation into the miner.
October 22, 2024
Patients Seek To Revive Class Action Over Google Data Use

Counsel for a group of patients urged an appeals court Tuesday to allow a claim accusing Google of misusing their health records for a kidney injury alert app to go ahead as a class action, arguing they had a reasonable expectation of privacy.
October 22, 2024
Financial Ombudsman Beats Ex-Staffer's Whistleblowing Case

The Financial Ombudsman Service has defeated a former employee's claim that it did not offer him a new role due to his alleged whistleblowing, convincing a tribunal in a ruling released Tuesday that his emails were not protected disclosures.
October 22, 2024
Commerzbank Urges Contempt Case Over False Assault Claim

Commerzbank AG asked a London court in a hearing Tuesday to allow it to bring contempt of court proceedings against a former employee who made false sexual assault allegations against a colleague as part of his failed harassment case against the bank.
October 22, 2024
Director Imprisoned For Concealing £220K Tax Debt

The former director of a wholesale company has been jailed for 10 months after failing to deliver accounting records when his business went into liquidation owing more than £220,000 ($290,000), the Insolvency Service announced Tuesday.
October 22, 2024
Food Supplier Denies It Owes Ex-Director Unpaid Commission

A food product business has said it never agreed to pay its former director £150,000 ($195,000) in commission he claims is outstanding, insisting instead that he owes over £1.1 million that he pocketed after artificially inflating suppliers' costs.
October 22, 2024
FCA Restricts Financial Services Platform After Failings

London-based financial firm Business Agent Ltd. has been restricted from acting as an individual savings accounts manager due to major regulatory breaches, including the unauthorized handling of client funds, the Financial Conduct Authority said Tuesday.
October 21, 2024
FCA Cracking Down On Illegal 'Finfluencing'

Britain's financial watchdog is cracking down on individuals who may be promoting financial services products illegally, announcing Tuesday that it is interviewing 20 "finfluencers."
October 21, 2024
UK Director's Use Of Tax Planning Data Subject For Retrial

Whether a director of a U.K. company is liable for a breach of confidence over the misuse of information in marketing a complex tax structure is an issue to be retried, a London court ruled.
October 21, 2024
Former Unite Official Loses Tribunal Claim Amid Fraud Probe

A tribunal has concluded that a former legal chief at Unite the Union did not face a "baseless" disciplinary investigation in connection with a police raid over a £100 million ($130 million) construction project that has since been referred to the Serious Fraud Office.
October 21, 2024
Campaigners To Submit Whistleblowing Protections Bill

Campaigners announced plans Monday to submit a new bill before Parliament that would establish a new government office to crack down on retaliation against whistleblowers who reveal fraud, corruption and misconduct.
October 21, 2024
D&G Wins Case Against Firms Over Fraudulent Cold Calls

A London court ruled Monday that a string of companies pretended to be associated with Domestic & General during cold calls to lure away its customers and steal business from the insurance and warranties giant.
October 21, 2024
FCA Sustainability Labels Prompt Worries From Trade Groups

Financial advisers and wealth managers remain concerned about the low range of labels the U.K.'s financial watchdog has included in its new sustainability disclosure regime, a trade group said in research released Monday.
October 21, 2024
Startup Funder Wants Co-Founder To Pay £7.1M In Fraud Case

A Paris-based startup funder asked a London court on Monday to order one of its co-founders to pay £7.1 million ($9.2 million) after his defense to allegations of "substantial and wide-ranging fraud" was struck out over failures to comply with court orders.
October 21, 2024
Lynton Crosby Consultancy Linked To Alleged Doc. Forgery

The strategic counsel and business intelligence branch of CT Group is the source of a forged report that allegedly suggested that Russian industrialist Oleg Deripaska misled arbitrators during a dispute with a former business partner, the consultancy told Law360 Monday.
October 21, 2024
BHP Accused Of 'Cynically' Dodging Liability In £36B Trial

BHP was accused Monday of "cynically and doggedly" trying to avoid responsibilities to more than 600,000 Brazilians following the country's worst environmental disaster at the start of a £36 billion ($47 billion) High Court trial.
October 21, 2024
FCA Fines Volkswagen £5.4M For Mistreating Customers

Britain's financial watchdog fined Volkswagen nearly £5.4 million ($7 million) on Monday after it found that the German automaker's financial arm had treated thousands of vulnerable customers unfairly for more than six years.
October 21, 2024
Chinese Duo Plead Not Guilty To Laundering Cryptocurrency

A Chinese woman and her co-defendant pleaded not guilty Monday to money laundering charges in London over an alleged criminal conspiracy to acquire and transfer cryptocurrency.
October 21, 2024
BHP Nears $30B Brazilian Dam Settlement As UK Trial Opens

BHP has said it is edging toward a 170 Brazilian real ($30 billion) settlement with Brazilian authorities over a dam collapse that triggered the Latin American country's worst environmental disaster as the miner is due to face a parallel London trial beginning on Monday.
October 18, 2024
Consultant Ducks Prison For Helping OneCoin Launder $35M

A New York federal judge declined on Friday to sentence a co-founder of business consultancy and investment firm InterAmerican Group to any time in prison for his role in a scheme to launder about $35 million in proceeds from the multibillion-dollar OneCoin cryptocurrency scam.
October 18, 2024
Apple To Face £785M Class Action From UK App Developers

Britain's antitrust tribunal ruled Friday that U.K. app developers could join together to bring a £785 million ($1 billion) class action against Apple over "excessive" app store fees after the claimants provided a "blueprint" to trial.
October 18, 2024
Post Office GC Says Legal Strategy Flawed By Group Think

The Post Office's top lawyer told the inquiry into the Horizon accounting scandal on Friday that the organization's approach to litigation with wrongly convicted subpostmasters was "flawed" and its legal advisers fell victim to "group think."
October 18, 2024
UK Litigation Roundup: Here's What You Missed In London

This past week in London has seen Professor Cat Jarman, Earl Spencer's new girlfriend, sue his ex-wife, Bitcoin fraudster Craig Wright file a £911 billion ($1.18 trillion) claim against BTC Core, journalist Oliver Kamm hit novelist Ros Barber with a defamation claim, and a barrister at Cloisters face a claim from a former client. Here, Law360 looks at these and other new claims in the U.K.
October 18, 2024
Fraud Losses Reach £571M In 2024, But APP Scams Down

Fraudsters stole £571.7 million ($745 million) from individuals and businesses in the U.K. during the first six months of 2024, 1.5% down on the same period a year ago as banks crackdown on authorized fraud, a banking industry trade body said Friday.
October 18, 2024
Osborne Clarke Pro Can't Block Zahawi SLAPP Case Evidence

The Solicitors Regulation Authority can argue that it was not common practice when a partner at Osborne Clarke LLP, who represented Nadhim Zahawi, warned a critic probing the former chancellor's tax affairs not to disclose a defamation threat, a tribunal ruled Friday.
October 18, 2024
Trade Body Calls For FCA To Clarify UK Rules On PEPs

A trade body for financial institutions called Friday for the Financial Conduct Authority to clarify in proposed amendments to guidance when firms should treat U.K. politically exposed persons and linked entities as lower risk.

Editor's Picks

FCA's £29M Fine Of Starling Sends Wider Compliance Warning

The Financial Conduct Authority hit Starling Bank Ltd. with a £28.9 million ($38.4 million) fine on Wednesday for inadequate anti-money laundering and sanctions controls. This has sent a wider warning to companies that compliance levels must match growth.
NCA Ducks Litigation Risk In 1st Seizure Of Sanctioned Assets

The decision by the National Crime Agency to secure the forfeiture of the assets of a sanctioned Russian oligarch is a pragmatic victory that avoids the risk of setting a damaging legal precedent, lawyers say.
How 3 Firms Cleared 2 Ex-Autonomy Execs In HP Fraud Case

A California federal jury's rejection last week of fraud charges against the founder and former finance vice president of British software company Autonomy validated an approach by the defendants' three law firms — Steptoe, Clifford Chance and Bird Marella — to form a "seamless" collaboration throughout the trial, from jury selection to closing arguments.

Expert Analysis

FCA's Broad Proposals Aim To Protect Customer Funds

The Financial Conduct Authority’s proposed changes to payments firms’ safeguarding requirements, with enhanced recordkeeping and fund segregation, seek to bolster existing regulatory provisions, but by introducing a statutory trust concept to cover customers’ assets, represent a set of onerous rules, says Matt Hancock at Greenberg Traurig.
Complying With Growing EU Supply Chain Mandates

A significant volume of recent European Union legislative developments demonstrate a focus on supply chain transparency, so organizations must remain vigilant about potential human rights and environmental abuses in their supply chain and make a plan to mitigate compliance risks, say lawyers at Weil.
Takeaways From Upcoming Payment Fraud Delay Legislation

Lawyers at Hogan Lovell discuss what to know about new legislation that will allow payment service providers to delay payments when third-party fraud is suspected, and share pointers for providers to consider ahead of the Oct. 30 effective date.
What New EU Packaging Regulation Will Mean For Companies

The forthcoming Packaging and Packaging Waste Regulation aims to regulate the entire life cycle of products from design to end-of-life waste, and will present particularly challenging deadlines for organizations, especially regarding recyclability and substances of concern, say Marcus Navin-Jones and Ward Overlaet at Crowell & Moring.
Modernizing UK Trade Settlement Standard: The Road Ahead

Andrew Tsang and Tom Bacon at BCLP consider the rationale and challenges of a potential U.K. trade settlement acceleration, part of an initiative to modernize the financial market infrastructure, and suggest that incorporating distributed ledger technology as a synchronized recording system would facilitate the move.
ICO Reprimand Highlights Importance Of Cookie Use Consent

The Information Commissioner's Office's recent reprimand of Bonne Terre's unlawful use of online advertising cookies confirms that companies using third-party tracking technologies are considered data controllers responsible for ensuring compliance, say Nessa Khandaker and Lynn Parker Dupree at Finnegan.
Analyzing The Implications Of 1st FCA Crypto ATM Crackdown

The Financial Conduct Authority’s recent criminal prosecution of Olumide Osunkoya, its first enforcement action against a crypto-asset trading firm's owner, is an unambiguous sign of the regulator’s commitment to actively pursue transgressors, but may be a hindrance to the U.K. crypto industry, says Asim Arshad at Lawrence Stephens.
What EU Antitrust Guidelines Will Mean For Dominant Cos.

The European Commission’s recent draft antitrust guidelines will steer courts' enforcement powers, increasing the risk for dominant firms engaging in exclusive dealing without any apparent basis to shift the burden of proof to those companies, say lawyers at Latham.
Draft Merger Control Guidance Allows CMA To Cast Wide Net

The Competition and Markets Authority's recent draft merger control guidance, reflecting the regulator's strengthened powers under the Digital Markets, Competition and Consumer Act, introduces extensive change and potential procedural improvements, specifically concerning reviews of private equity firms, say lawyers at Travers Smith.
Key Points From Cayman's Beneficial Ownership Regime

While recent expansion of the Cayman Islands Beneficial Ownership Act's scope means it now encompasses many entities with previously minimal obligations, the changes ensure a welcome level playing field with workable alternative routes to compliance, says Lucy Frew at Walkers Global.
HMRC Transfer Pricing Guide A Vital Resource For Businesses

HM Revenue & Customs' recent guidelines on common transfer pricing compliance risks should be required reading for affected businesses in indicating HMRC's expected benchmark for documents and policies, say Tomoko Ikawa and Kapisha Vyas at Simmons & Simmons.
How UK Digital Regulation Under Labour May Differ From EU

Although details on the Labour government's data and cyber resilience reforms are currently limited, there are indications that proposed legislation and a lack of AI-specific legislation signal divergence from the European Union's approach, say lawyers at Deloitte.
Insights From FRC's Report On Good Corporate Governance

Although the Financial Reporting Council’s recent report on private companies opting to follow the Wates principles has identified improvements, it is important for organizations to provide transparent disclosures and avoid boilerplate, tickbox filings, says Tessa Hastie at BCLP.
What To Know About The UK Overseas Funds Regime

The U.K.’s overseas funds regime is now open for applications, providing a simplified way of offering a foreign fund to U.K. retail investors, and the Financial Conduct Authority's clear policy statement on implementation should ease the transition process from the existing scheme, say lawyers at Dechert.
5 Cyber Risk Tips For Lawyers Contracting Cloud Services

With the U.K. government's recent announcement of a forthcoming cybersecurity bill, and the European Union's imminent deadline to transpose the second Network and Information Systems Directive into national law, it is important for in-house lawyers to be alive to potential risks when contracting for cloud services, say lawyers at Addleshaw Goddard.