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Corporate Crime & Compliance UK
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February 12, 2025
Russia Loses State Immunity Bid In $63B Yukos Case
A London appeals court on Wednesday dismissed the Russian government's attempt to use state immunity to block investors from enforcing an over $63 billion arbitration award, saying the state should honor the award without engaging in "trench warfare."
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February 12, 2025
Ex-Oil Execs' Asset Freeze Axed After Beating $335M Fraud
A London court has removed a worldwide asset freeze on two former top executives at oil trader Arcadia Group after 10 years following the defeat of a $335 million fraud claim that the men had diverted trading profits into their own pockets.
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February 12, 2025
Shell's Liability For Nigerian Oil Spills Set For UK Trial
Thousands of Nigerian villagers will begin efforts on Thursday to convince the High Court that energy giant Shell can be held responsible for the environmental damage caused by repeated oil leaks and systemic pollution from its pipelines and infrastructure.
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February 12, 2025
EU Parliament Greenlights Changes To Digital VAT Rules
The European Parliament approved a series of changes to the European Union's plans to reform the value-added tax rules of the economic bloc including fully digitalizing VAT reporting, making it harder to dodge the tax in EU jurisdictions, according to a statement Wednesday.
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February 12, 2025
Justices Rewrite Extradition Rules In Shock To DOJ's Reach
The decision by Britain's highest court to block the extradition of a British trader has rewritten decades of precedent, although lawyers are divided on whether the findings will weaken the long reach of U.S. law or simply refocus it.
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February 12, 2025
Financial Ombudsman's Sudden Exit Draws MP Scrutiny
A cross-party group of MPs is scrutinizing the sudden and unexplained resignation of the chief executive of Britain's Financial Ombudsman Service after failing to get answers from the body's board.
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February 12, 2025
Axiom Ince Execs' Fraud Trial Over Collapse Set For 2027
Five former leaders of Axiom Ince are to stand trial in 2027 over allegations they committed fraud and covered up their wrongdoing during a regulatory probe into the law firm, which collapsed with a hole of more than £60 million ($74.4 million) in its client accounts.
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February 12, 2025
Arena Liquidators Challenge Lloyds' Directors' Authority Defense
Arena Television's liquidators have dismissed Lloyds Bank's defense to allegations it processed payments linked to a £1.2 billion ($1.5 billion) fraud, saying the bank's claim it was acting on the instructions of directors who were authorized to make the payments is "unsustainable."
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February 12, 2025
Close Brothers Sets Aside £165M For Car Finance Probe
London merchant bank Close Brothers said Wednesday that it plans to set aside £165 million ($205 million) to cover potential costs stemming from a Financial Conduct Authority probe into motor finance commission agreements and a related appeal at the U.K.'s top court.
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February 12, 2025
UK Supreme Court Bars Trader's Extradition To The US
Britain's highest court has barred the extradition of a British-Lebanese trader to the U.S. over insider dealing allegations, finding on Wednesday that the charges he faced for allegedly doling out lavish gifts in exchange for tips occurred in Britain.
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February 11, 2025
£5.5B Tax Evasion Could Be 'Tip Of Iceberg,' Watchdog Warns
The £5.5 billion ($6.8 billion) annual cost of tax evasion drawn up by HM Revenue and Customs is probably "vastly underestimated" — and the authority has no plan to tackle the gap in the public purse, the government's spending watchdog warned Wednesday.
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February 11, 2025
Vacuum Or Trap? What Trump's FCPA Halt Means For SFO
U.S. President Donald Trump's decision to stop enforcing bribery laws against American companies creates a potential vacuum for the Serious Fraud Office to fill, though lawyers caution that prosecuting U.S. companies could prove a political hazard for the U.K. enforcement agency.
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February 11, 2025
Met Office Process For Tackling Sexual Misconduct Upended
A London court ruled Tuesday that the Met's process to pull clearance for police officers accused of sexual misconduct is unlawful, leaving the force in what it called "a hopeless position" to tackle unfit officers after Wayne Couzens' rape and murder conviction.
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February 11, 2025
BT Fends Off Customers' Bid To Revive £1.3B Class Action
A group of BT landline customers have failed to revive a £1.3 billion ($2 billion) class action against the telecom giant, after a competition tribunal refused Tuesday to allow an appeal against the first substantive ruling deciding a U.K. collective proceedings order claim.
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February 11, 2025
StanChart Bids To Slash £762M From UK Investor Claim
Standard Chartered urged the High Court on Tuesday to strike out claims from passive investors worth £762 million ($943 million) in litigation accusing the bank of making untrue or misleading market statements about its sanctions noncompliance.
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February 11, 2025
Tribunal To Consider If FCA Has Equality Duty In Cum-Ex Row
The U.K.'s Upper Tribunal will hold a preliminary hearing to decide whether the Financial Conduct Authority has a duty to not discriminate when it fined and banned a cum-ex trader from the industry, according to a tribunal decision published Tuesday.
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February 11, 2025
Barclays Sued Over Staffer's Alleged Role In $643K Fraud
A Singaporean fire safety business has sued Barclays Bank PLC over an elaborate fraud that caused it to send $643,000, alleging that a bank employee was involved in the plot to dupe it into transferring funds to criminals.
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February 11, 2025
Procurement Biz Blocks Disclosure In Byju's $533M Debt Fight
A London judge on Tuesday ruled it would be oppressive to force a U.K. procurement company to provide evidence related to an allegedly fraudulent $533 million transaction for Delaware court proceedings involving the bankrupt U.S. subsidiary of Indian educational tech firm Byju's.
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February 11, 2025
MPs' WhatsApp Scandal A Cautionary Tale On Privacy At Work
The sanctioning of two Labour members of Parliament for offensive comments made in a group chat is a reminder that what happens on WhatsApp is not private, employment law experts have warned.
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February 10, 2025
Pension Execs Found Liable In $2B Danish Tax Fraud Case
A New York federal jury found Monday by "clear and convincing evidence" that Denmark's tax agency reasonably relied on the false statements made on pension plan applications that were part of a $2.1 billion tax fraud scheme by pension plan executives.
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February 10, 2025
Financier Bids To Resurrect HMRC Bungled Prosecution Claim
A corporate financier sought permission Monday to challenge a decision to dismiss his claim against HM Revenue and Customs and the Crown Prosecution Service for wrongly prosecuting him, arguing that the judge had failed to properly consider the evidence.
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February 10, 2025
Film Executives Ran £13M VAT Fraud, Prosecutors Tell Jury
Four former managers at a film production company best known for "Avatar" cheated taxpayers out of £13 million ($16.14 million) through a "convoluted" VAT scheme run out of the back garden of a modest home in London, prosecutors told a jury on Monday.
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February 10, 2025
Billionaire's Daughter Mothballs Purchase Of Infested Mansion
The daughter of a Georgian billionaire and her husband can hand back a £32.5 million ($40 million) London mansion infested with "millions of moths" after a judge found on Monday that the property seller hid the problem.
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February 10, 2025
Gov't Prompted To Prioritize Fighting Economic Crime
The U.K. government was urged by a financial services group on Monday to spend more on fighting economic crime and to require that tech companies contribute to fraud reimbursement.
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February 10, 2025
Property Boss' Brother Denies Dodging £13M Fraud Recovery
The brother of a property tycoon who funneled £13 million ($16 million) out of his family business has hit back at claims that he transferred his shares from an investment venture to escape attempts to recover funds dissipated from the fraud.
Expert Analysis
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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Opinion
New Property Category Not Needed To Regulate Digital Assets
The U.K. Law Commission's exploration of whether to create a third category of property for digital assets is derived from a misreading of historical case law, and would not be helpful in resolving any questions surrounding digital assets, says Duncan Sheehan at the University of Leeds.
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FTSE Draft Rules Show Impact Of FCA Listing Reforms
FTSE Russell’s recently published provisional rule changes represent a much-awaited indication of its response to the U.K. Financial Conduct Authority’s proposed listing reforms, providing a level of certainty that will assist issuers and advisers in preparing for the implementation of the regime, say lawyers at Davis Polk.
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FCA Strikes A Balance With 'Finfluencer' Guidance
With financial firms leveraging social media to engage with a broader audience, the Financial Conduct Authority’s recent "finfluencer" guidance signals a recognition of the imperative to adapt regulatory frameworks while maintaining a firm commitment to consumer protection, say David Allinson and Damien O'Malley at RPC.