Corporate Crime & Compliance UK

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Forced Labor Ruling To Spur NCA Scrutiny On Supply Chains

An English appellate court's landmark findings that the National Crime Agency misunderstood the U.K.'s anti-money laundering powers could cast greater scrutiny on the extent of illicit goods flowing through companies' supply chains, lawyers say.
July 12, 2024
Lawyer Beats Allegation He Helped Tycoon Duck Asset Freeze

A leading Monégasque lawyer did not conspire to help an embattled Taiwanese shipping magnate evade an asset freezing order, as he "honestly believed" he was entitled to transfer $26 million from the sale of the businessman's villas, a London judge ruled Friday.
July 12, 2024
Apple, Amazon Fight Over Class Terms In £500M Price Claim

A consumer advocate clashed in a London tribunal on Friday with Apple and Amazon over the terms of her £500 million ($649 million) class action that accuses them of inking a secret deal to limit independent sales of Apple's products.
July 12, 2024
UK Litigation Roundup: Here's What You Missed In London

This past week in London has seen the owner of the Lambretta scooter brand Innocenti SA embroiled in a trademark dispute with a property developer, a clash between two art dealers over a collection of tapestries, Telecom Italia pursue a debt claim against a competing telecommunications company, and performing arts trade union Equity hit a casting directory for charging unfair subscription fees on actors. Here, Law360 looks at these and other new claims in the U.K.
July 12, 2024
Prisoners To Be Released Early As System Nears Capacity

Thousands of prisoners will be released early after serving less than half of their sentences, the government said on Friday, as the justice system teeters on the edge of collapse amid overcrowding in the country's prisons.
July 12, 2024
Dentons To Face SRA Appeal On AML Misconduct Ruling

The Solicitors Regulation Authority has appealed against a London tribunal's decision that inadvertent anti-money laundering failures at the U.K. arm of Dentons over a politically exposed client did not amount to professional misconduct.
July 12, 2024
Oil Co. Loses Bid To Alter £43M Legal Bills In $11B Nigeria Win

The Court of Appeal refused on Friday to change the currency used in the payment of Nigeria's legal costs arising from an $11 billion battle over a fraudulent arbitration award for the "straightforward" reason that the solicitors' invoices are in sterling.
July 12, 2024
Fix AML Defenses Or Face Fines, German Banking Group Told

Germany's financial watchdog warned the Solaris SE digital banking group on Friday that it faces regulatory penalties if it does not shore up its defenses against money laundering.
July 11, 2024
Volvo Wasn't Properly Served In Cartel Case, ECJ Says

The European Union's top court ruled Thursday that Volvo was not validly served when documents were sent to its Spanish subsidiary, in a major setback for a competition damages claim in the Iberian country.
July 11, 2024
Former EuroChem CEO Escapes EU Sanctions

The European General Court has lifted sanctions on the former chief executive officer of Russian fertilizer manufacturer EuroChem, finding there is not enough evidence to show the businessman is still involved in sectors generating revenue for the Russian government.
July 11, 2024
NCA Can Seize Money Linked To £55M Tax Scam

A 13-year money laundering investigation involving a lottery winner, a bomb hoax and a £55 million ($71 million) tax fraud neared its end at a London court on Thursday as a judge ordered funds from three defunct companies to be forfeited to the National Crime Agency.
July 11, 2024
Social Media Influencers Deny FCA Charges Over Forex Ads

Eight reality TV stars and social media influencers pleaded not guilty to charges brought by the Financial Conduct Authority at a London court on Thursday over claims that they promoted a high-risk trading scheme dealing in financial products without authorization.
July 11, 2024
Ex-Clifford Chance Veteran Accused Of Pocketing Client Funds

The Solicitors Regulation Authority is taking the former managing partner of Clifford Chance's Brussels office to a tribunal in London after he allegedly attempted to misappropriate approximately $1 million in client funds and then tried to shield his misconduct from the firm.
July 11, 2024
Ex-Autonomy CFO Formally Banned After Conviction

The U.K. audit watchdog said on Thursday that it has formalized its 20-year exclusion from the accountants' professional body of the chief financial officer of software company Autonomy after he was convicted of fraud and securities offenses in the U.S.
July 10, 2024
Deutsche Bank Settles Ex-Trader's Malicious Prosecution Suit

Deutsche Bank has settled a lawsuit brought by a former trader who claimed the bank scapegoated him when the U.S. Department of Justice began an investigation into suspected interest rate rigging, according to a Wednesday filing in New York federal court.
July 10, 2024
CMA Bids To Reverse Nixed £100M Fine In Drug-Pricing Case

The U.K.'s competition watchdog on Wednesday sought to overturn a ruling that upended more than £100 million ($128.4 million) in fines against drug companies for allegedly reaching agreements related to hydrocortisone tablets, in a major case for U.K. competition law.
July 10, 2024
HMRC, CPS Beat Financier's Claim Over Botched Prosecution

HM Revenue and Customs and the Crown Prosecution Service have beaten claims of malicious prosecution and misfeasance in public office by a corporate financier following a failed criminal fraud case, with a judge finding that they had enough evidence to pursue him.
July 10, 2024
UK Prosecutors Secure 1st Monero Crypto Payout

A drug dealer has paid back £15,000 ($19,200) of his illegal profits by surrendering his Monero cryptocurrency to a U.K. government agency, the first time the coin has been sold off in a Crown Prosecution Service case.
July 10, 2024
Citi Rebuked Over Botched Misconduct Probe Into Trader

A decision by Citigroup to fire a trader amid allegations that he had given misleading updates on deals was unfair because its probe was plagued by delays and led to an unreasonable finding of gross misconduct, a tribunal has ruled.
July 10, 2024
Finance Co. Can't Escape Liability In £1.7M Failed Investments

A finance company has failed to duck liability for botched property investments worth approximately £1.7 million ($2.2 million) as a London appeals court found the firm had accepted responsibility for another business to arrange the deals.
July 09, 2024
UK's Non-Dom Taxpayer Count Increased 7%

A growing number of taxpayers in the United Kingdom claimed last year that their permanent home is outside the country, qualifying them for a non-domiciled tax exemption in the crosshairs of lawmakers, HM Revenue & Customs said Tuesday.
July 09, 2024
Global Standard Setter Guides Firms On Third-Party Risk

A global banking standard setter on Tuesday proposed new principles to guide banks and regulators on how to manage and supervise risks from services increasingly outsourced to external organizations due to technology growth.
July 09, 2024
Lawyer Accused Of Making False Mishcon Claims On Iran TV

The solicitors' watchdog told a disciplinary tribunal on Tuesday that a high-profile criminal defense lawyer recklessly made false statements about Mishcon de Reya LLP while appearing on an antisemitic show on an Iranian state-owned media channel.
July 09, 2024
MHA MacIntyre Hudson, 2 Ex-Staff Fined For Audit Failures

Britain's accounting watchdog on Tuesday said it had fined MHA MacIntyre Hudson LLP and two of its former employees for "numerous breaches" in the audits of a subsidiary of commodities business Monaco Resources Group.
July 09, 2024
Malaysian Investor Fights To Block €36M Claim At Top Court

A Malaysian businessman urged the U.K.'s top court on Tuesday to rule that a creditor should be blocked from bringing a €36 million ($39 million) claim against him because it already won a declaration in an earlier action pursuing the debts.
July 09, 2024
FCA To Require Criminal Record Checks On New Firm Owners

The Financial Conduct Authority has proposed to require owners and controllers of financial firms applying for authorization to obtain criminal background checks.

Editor's Picks

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.
Starmer Could Crack Judicial Crisis, Former CPS Chiefs Say

Keir Starmer's lead in the polls as the general election in July approaches has sparked hopes among criminal justice advocates that the Labour leader — a former top prosecutor — will implement reforms as prime minister.
Pillsbury's New UK White Collar Chief Eyes Success In London

Former Serious Fraud Office "powerhouse" Audrey Koh is in the building, and Pillsbury Winthrop Shaw Pittman says it now has the tools to launch its white-collar and corporate investigations practice in London. Here, Koh and managing partner Matthew Oresman survey the legal landscape.

Expert Analysis

How CMA's AI Strategic Update Addresses Industry Risks

The Competition and Markets Authority’s recent artificial intelligence strategic update, setting out the regulator’s understanding of AI risks and how it intends to address them, is indicative of its focus on incumbent technology organizations, although future political developments in the U.K. may also shape the CMA's approach, say Christopher Foo and Carol Slattery at Ropes & Gray.
Labour's 'Fresh Approach' To Tackling Financial Crime

Given newly elected Prime Minister Sir Keir Starmer’s background as a criminal defense lawyer and director of public prosecutions, an administration with strong views on financial crime can be expected, and revenue raising and proceeds of crime recovery are likely to be at the forefront, says Matthew Cowie at Rahman Ravelli.
What UK Digital Markets Act Will Mean For Competition Law

The new Digital Markets Act’s reforms will strengthen the Competition and Markets Authority's investigatory and enforcement powers across its full remit of merger control and antitrust investigations, representing a seismic shift in the U.K. competition and consumer law landscape, say lawyers at Travers Smith.
Examining The EU Sanctions Directive Approach To Breaches

In criminalizing sanctions violations and harmonizing the rules on breaches, a new European Union directive will bring significant change and likely increase enforcement risks across the EU, say lawyers at Hogan Lovells.
What New UK Labour Gov't Is Planning For Financial Services

Following the Labour Party’s U.K. election win on July 4, the new government has already announced its key missions for economic growth, green investment and tax reform, so affected Financial Conduct Authority-regulated entities should be prepared for change and on the lookout for details, says Rachael Healey at RPC.
Companies Trading In The EU Should Heed Mondelēz Ruling

The European Commission’s recent €337.5 million fine of Mondelēz is the latest decision targeting restrictions on EU cross-border trade, and serves as a warning to companies active in the region to check their contracts and practices for illegal restraints, and to perform audits to ensure compliance, says Matthew Hall at McGuireWoods.
Why Reperforming Loan Securitization In UK And EU May Rise

The recently published new U.K. securitization rules will largely bring the U.K.’s nonperforming loan regime in line with the European Union, and together with the success of EU and U.K. banks in reducing loan ratios, reperforming securitizations may feature more prominently in relevant markets going forward, say lawyers at Morgan Lewis.
How Extension Of EU License Exemption Affects Subsidiaries

Since many European Union entities with a presence in Russia will soon need to obtain a license to continue providing certain services and software to Russian subsidiaries, organizations and legal professionals should prepare in advance and assess their companies' supply chain compliance with EU sanctions, say lawyers at McDermott.
What Legal Cannabis In Germany Means For Employers

Since April 1, the consumption and limited possession of cannabis has been permitted in Germany, so employers should take a few steps to maintain safe and productive workplaces while respecting the new legal landscape, says Sven Lombard at Simmons & Simmons.
What French Watchdog Ruling Means For M&A Landscape

Although ultimately dismissed due to lack of evidence, the French competition authority’s recent post-closing review of several nonreportable mergers is a landmark case that highlights the increased complexity of such transactions, and is further testament to the European competition authorities’ willingness to expand their toolkit to address below-threshold M&As, say lawyers at Cleary.
New Directors' Code Of Conduct May Serve As Useful Guide

Although the Institute of Directors’ current proposal for a voluntary code of conduct is strongly supported by its members, it must be balanced against the statutory requirement for directors to promote their company’s success, and the risk of claims by shareholders if their decisions are influenced by wider social considerations, says Matthew Watson at RPC.
Comparing EU, Southeast Asia Approaches To AI Regulation

Although Southeast Asian countries often adopt statutory frameworks similar to those in the European Union, the region’s more business-friendly approach to artificial intelligence regulation may be a setback to the EU’s push for coordination with its AI Act and a barrier to establishing a global standard, say Anne-Gabrielle Haie at Steptoe and Nop Chitranukroh at Tilleke & Gibbins.
Exploring The EU's Draft Standards On Crypto Authorization

The European Securities and Markets Authority’s recently published draft standards aim to promote fair competition and a safer environment for crypto providers and investors, detailing precisely the information to be provided to national authorities in charge of screening the acquisitions of a qualifying holding, says Mathieu de Korvin at Norton Rose.
Assessing Exposure Under UK Foreign Influence Scheme

While the proposed Foreign Influence Registration Scheme, designed to ensure transparency around foreign state-directed activities, may be delayed by the snap general election, organizations should prepare for compliance, including addressing concerns about the extent of unintended consequences arising from the scheme's scope, say Gavin Costelloe and Gillian Sproul at Greenberg Traurig.
How FCA Guidance Aligns With Global Cyberattack Measures

The U.K. Financial Conduct Authority’s recent guidance on preparing for cyberattacks aligns with the global move by financial regulators to focus on operational resilience, highlighting the importance of proactive strategies and robust resilience frameworks to mitigate disruptions, while observing a disappointing level of engagement by the industry, say Alix Prentice and Grace Ncube at Cadwalader.