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Corporate Crime & Compliance UK
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Featured
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.
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November 10, 2024
SRA Closed 43 Firms For Mishandling Client Money In 2023
The closure of Axiom Ince Ltd. by the solicitors' watchdog was just the tip of the iceberg, as new data shows that the regulator was responsible for shuttering more than 10% of all law firms which folded in 2023.
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November 08, 2024
Cohen & Gresser Taps French Firm For White Collar Pro
Cohen & Gresser LLP has recruited a white collar expert in France to augment its capabilities representing clients in international regulatory investigations and cases involving allegations of financial crimes.
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November 08, 2024
Oligarch's Estate Resists Fraud Claim In $3B Inheritance Fight
The estate of a Russian cement tycoon has resisted claims by his widow and daughter that the businessman plotted to defraud them of their inheritance as part of a battle over more than $3 billion worth of assets.
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November 08, 2024
Apache To Pull North Sea Investments Over UK Windfall Tax
Texas-based oil giant Apache Corp. said Friday that it will wind up its North Sea oil operations by 2030 in response to the U.K.'s plan to raise the energy profits levy — known as the windfall tax — by 3 percentage points.
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November 08, 2024
UK Litigation Roundup: Here's What You Missed In London
This past week in London has seen collapsed German airline Air Berlin take action against its former auditor KPMG, the associate editor at The Spectator hit with a libel claim by a mosque over the far-right riots that took place in August and British licensing authority the Performing Right Society sue Parklife Manchester and four other festival organizers. Here, Law360 looks at these and other new claims in the U.K.
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November 08, 2024
Insurers Urge Shared Approach To Define Major Cyber-Events
Limited historical evidence about major cyber-events makes it difficult to define the risks insurers face, experts have said, as they urge businesses to consider a shared approach when they describe "one of the most" prominent dangers to the sector.
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November 08, 2024
Auditor Blames Lendy's Misstatements For Investor Losses
An auditor has admitted it made mistakes when it vetted a lending platform's accounts but denied the failures caused investors to lose an alleged £15.6 million ($20.2 million), claiming the platform had fraudulently misrepresented its financial health.
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November 08, 2024
Shipowner Wins OK To Sell Oil Stranded At Sea By Sanctions
A shipowner can sell crude oil that was stranded at sea when the charterer was placed on a U.S. sanctions list, a London judge said Friday, ruling the cash from the ultimate buyer can be paid into the English courts.
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November 08, 2024
Nigerian Oil Mogul Wins Fight To Lift $33M Freezing Order
A Nigerian oil and gas magnate won his battle to scrap a $33 million freezing order on Friday, as a London court ruled that he was not likely to dissipate his assets to avoid paying a fuel trader.
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November 08, 2024
Lawyers Deny Giving Bad Advice On £635K Crypto-Fraud
A boutique investment law firm has denied providing "valueless advice" to an alleged victim of a cryptocurrency fraud on how to recover her money, and said it helped to secure a freezing order against the fraudsters.
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November 07, 2024
Binance Cites AML Breaches In €144M Solaris Debit Card Row
A Binance company has hit back at online banking group Solaris' €144 million ($156 million) claim over a collapsed cryptocurrency debit card scheme, telling a London court it was entitled to end the deal after Solaris companies broke anti-money laundering rules.
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November 07, 2024
UK Sanctions Mercenaries Tied To Russia's War Machine
The U.K. government on Thursday sanctioned 56 companies and individuals operating in Africa that it said were responsible for supporting Russia's military industrial complex, in the largest wave of restrictions since 2023.
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November 07, 2024
5 Lessons For Lawyers From The UK Gov't Anti-Fraud Advice
Britain's largest companies face a challenge after being given 10 months to build safety rails to stop their employees committing fraud, lawyers say, after the government released advice on how they should comply with landmark anti-fraud legislation.
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November 07, 2024
Rainforest Investment Bosses Appeal £37M Fraud Convictions
Two directors of an ethical-investment scheme imprisoned for defrauding investors out of £37 million ($48 million) sought to overturn their convictions at a London appeals court Thursday, arguing jurors were not told what the goal of the conspiracy was.
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November 07, 2024
EU Tax Nominee Says Bloc Could Go It Alone On Digital Tax
The nominee to serve as the European Union's next tax commissioner said Thursday that the EU should seek its own solution to digital taxation if it can't keep the U.S. on its side following the elections this week.
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November 07, 2024
Malaysia Wins $15B Arbitration Case Against Sulu Heirs
The French Supreme Court has tossed out a $14.9 billion arbitration award brought against Malaysia by the heirs of the long-defunct Sultanate of Sulu over a soured land deal agreement, as the court said the arbitration award is not recognized under French law.
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November 07, 2024
Eurojust Busts Fake Investment Platforms For Stealing €10M
Authorities in Germany and Cyprus have dismantled 13 fake investment platforms that have allegedly defrauded victims out of more than €10 million ($10.8 million) in a cross-border operation, the European law enforcers said on Thursday.
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November 07, 2024
Modern Slavery Reports Hit Record High Of 4,750 In Quarter
More than 4,750 potential victims of modern slavery were reported to the Home Office in the three months to September — the highest quarterly numbers since records began in 2009.
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November 07, 2024
FCA Warns Firms On Inaccurate Transaction Reporting
The Financial Conduct Authority warned on Thursday that some regulated companies are reporting their transactions inaccurately — even after they have taken remedial measures.
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November 07, 2024
2 Men Convicted Of £1.5M Crypto-Investment Fraud
The Financial Conduct Authority said Thursday that it has secured convictions against two individuals involved in a £1.5 million ($1.9 million) crypto-investment fraud that spanned more than two years.
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November 06, 2024
EU Court Won't Toss Commission's Tax Clawback In Portugal
A European Union court on Wednesday tossed two challenges to a European Commission ruling that Portugal must claw back tax breaks provided to companies with no local economic activity because that ran counter to commission-approved policies.
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November 06, 2024
Hedge Fund Lawyer Defends Signing Off On £1.4B Fraud Docs
The former top lawyer at a hedge fund accused of defrauding Denmark's tax authority of £1.4 billion ($1.8 billion), who signed off on documents falsely confirming the trades were legitimate, told a London trial he didn't think it "was a big deal at the time."
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November 06, 2024
Fieldfisher Unfairly Fired Lawyer Amid Sex Assault Probe
A former senior associate at Fieldfisher LLP was unfairly fired over allegations that he had sexually assaulted a colleague in a toilet at a work event after the firm relied on the co-worker's "deliberate false evidence," an employment tribunal has ruled.
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November 06, 2024
Serco Prison Van Tracking Disrupted By Cyberattack
A U.K. tech company that provides fleet tracking software to government outsourcing giant Serco Group PLC, including to its prison van fleet, said Wednesday that it expects to largely return its operations to normal next week after suffering a cyberattack.
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November 06, 2024
Corning Hit With EU Probe Over Mobile Phone Glass Deals
Corning faces an investigation by the European Commission over suspicions the multinational glass producer abused its dominant position in the global market for a glass used to protect mobile phone screens, the antitrust watchdog said Wednesday.
Editor's Picks
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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.
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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.
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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
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M&A Takeaways From 1st EU Foreign Subsidies Merger Ruling
The European Commission’s recent decision on the merger between e& and PFF Telecom is the first to approve a transaction subject to commitments under the Foreign Subsidies Regulation, serving as a helpful guide by confirming that behavioral measures ring-fencing EU activities from the potential effect of third-country subsidies are acceptable, say lawyers at Cleary.
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What New Int'l Treaty Means For Global AI Regulation
Lawyers at Bird & Bird consider how global artificial intelligence regulation will be affected by the first international AI treaty recently signed by the U.S., EU and U.K., as well as its implications for business and several issues that stakeholders should be aware of.
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Factors Driving EU Competition Policy For The Next 5 Years
Teresa Ribera Rodríguez’s recent nomination as the new European Union commissioner for competition prompts questions about policy and enforcement, with goals to enhance competition in business, implement stronger and faster enforcement, and promote and fund decarbonization likely in her sights during a five-year term, say lawyers at Linklaters.
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2 Highlights From Labour's Notable Employment Rights Bill
The Labour government’s recently unveiled Employment Rights Bill marks the start of a generational shift in U.K. employment law, and its updates to unfair dismissal rights and restrictions on fire-and-rehire tactics are of particular note, say lawyers at Covington.
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How Energy Scheme Is Affecting Large Co. Fund Investment
The latest phase of the Department of Energy and Climate Change's Energy Savings Opportunity Scheme implicates funds with investments in large companies by establishing significant and complex changes to the reporting cycle for mandatory assessments, say lawyers at Macfarlanes.
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How Companies House Enforcement Powers Are Growing
Companies House's recently increased ability to assess what material is submitted to the U.K. register of companies, and to proportionately enforce where violations have occurred, may require some degree of cultural shift within many companies, say lawyers at Greenberg Traurig.
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How New Sanctions Office Will Affect UK Trade Landscape
The recent launch of the Office of Trade Sanctions Implementation will help to create a more comprehensive civil enforcement terrain, but the potential for multiple investigations means businesses should reassess their systems to ensure they do not inadvertently incur civil liability, says Julia Pearce at Robertson Pugh.
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FCA Savings Update Focuses On Good Customer Outcomes
The Financial Conduct Authority’s recent cash savings update emphasizes its expectations of firms to deliver fair value to consumers by documenting the rationale for actions at each stage, considering customer communications and demonstrating that potential harms are acted upon, say Matt Handfield, Charlotte Rendle and Caroline Hunter-Yeats at Simmons & Simmons.
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Opinion
Why The UK Gov't Should Commit To An Anti-SLAPP Law
Recent libel cases against journalists demonstrate how the English court system can be potentially misused through strategic lawsuits against public participation, underscoring the need for a robust statutory mechanism for early dismissal of unmeritorious claims, says Nadia Tymkiw at RPC.
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5 Takeaways From UK Justices' Arbitration Jurisdiction Ruling
The U.K. Supreme Court's recent judgment in UniCredit Bank v. RusChemAlliance, upholding an injunction against a lawsuit that attempted to shift arbitration away from a contractually designated venue, provides helpful guidance on when such injunctions may be available, say attorneys at Fladgate.
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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.
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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.
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Takeaways From Upcoming Payment Fraud Delay Legislation
Lawyers at Hogan Lovells 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.
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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.
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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.