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.
November 22, 2024
Teacher Stern Cleared Of Rules Breach Over Client Payments

Teacher Stern LLP and two partners were cleared by a London disciplinary tribunal on Friday of breaching legal accounting rules and ethical regulations by allowing clients to transfer money that was not related to an underlying legal transaction or service.
November 22, 2024
Fraud Victim Can't Revive Duty Claim Against NatWest

A fraud victim failed Friday to revive its claim against National Westminster Bank PLC for not stopping more than £420,000 ($526,000) in payments to the scammers' bank account, after a London judge ruled the company did not have a reasonable chance of overturning the dismissal.
November 22, 2024
CAT Approves £7B Google Claim Over Apple Search Monopoly

The Competition Appeal Tribunal gave the green light on Friday to a consumer advocate's attempt to bring a £7 billion ($8.7 billion) class action against Google over claims the tech giant has blocked competitors from entering the search engine market on Apple products.
November 22, 2024
Paragon Auditor Denied Interim Pay In Whistleblowing Claim

An internal auditor at Paragon Bank has lost his bid for interim pay in his whistleblowing claims against the property finance lender as an appeals tribunal found he would struggle to prove that this was the reason he was sacked.
November 22, 2024
Manchester Bombing Survivors' MI5 Claim Rejected As Late

More than 250 survivors and the family members of people killed in the Manchester Arena bombing can't claim the U.K. intelligence services' failure to prevent the attack breached their human rights because the allegations were not brought in time, a London tribunal ruled Friday.
November 22, 2024
Imprisoned Oligarch Asks UK Court To Hear Conspiracy Claim

Lawyers for an oligarch imprisoned in Russia told a London court Friday that he was entitled to pursue litigation against pipeline giant Transneft in England, rather than Russia as the company wants, because a "not insignificant" proportion of the damage in the case was incurred in England.
November 22, 2024
Putin Ally's In-law Charged With Paying Nephew's School Fees

The brother-in-law of a former Russian politician faces new criminal charges for allegedly breaching sanctions after U.K. authorities accused him of paying for the children of an alleged ally of Vladimir Putin to attend a private school, a court heard Friday.
November 22, 2024
UK Litigation Roundup: Here's What You Missed In London

This past week in London has seen cash-strapped Thurrock Borough Council bring a £40 million ($50 million) negligence claim against 23 other local authorities over its solar investments from a not-for-profit local government body, AstraZeneca sue a fire safety company following a blaze at its Cambridge headquarters last year, and a director who was convicted in 2016 for corporate manslaughter face action by Manolete Partners. Here, Law360 looks at these and other new claims in the U.K.
November 22, 2024
SFO Accuses Guralp Systems Of Breaching DPA

The Serious Fraud Office accused Guralp Systems on Friday of breaching the terms of corporate bribery settlement inked five years ago and will haul the seismic technology company before a criminal court for possible prosecution.
November 22, 2024
Former Nigerian Politician Denies NCA Bribery Charges

A former Nigerian oil minister pleaded not guilty in London on Friday to accepting cash, cars and luxury goods, appearing in court alongside two associates who also denied steering the bribes her way in exchange for oil and gas contracts worth millions of pounds.
November 21, 2024
Glencore Failed Checks In Chad Oilfield Toxic Spill

Glencore UK did not take appropriate steps to prevent and mitigate a 2018 toxic spill in one of its Chad oilfields, the U.K. government announced Thursday following a years-long probe into the incident.
November 21, 2024
Chauffeur Startup Founder Bids To Sue 'Disinformation' Sites

The founder of an international luxury chauffeur ride-hailing company asked a London court Thursday to allow him to sue the anonymous publishers of two websites, saying that they are likely part of a "disinformation campaign" against him.
November 21, 2024
Ex-CBA Chief Gets Majority Of Sexual Misconduct Case Nixed

The former chair of the Criminal Bar Association, Jo Sidhu KC, was unable to get the entirety of a sexual misconduct case involving a female law student thrown out, but a professional tribunal on Thursday set aside allegations involving two other aspiring lawyers.
November 21, 2024
EU Watchdogs Set Rules On Sharing Staff Fitness Reports

European Union regulators have set out guidelines for their new information exchange system to help national regulators assess the suitability of senior managers for key roles in financial services.
November 21, 2024
SFO Opens Investigation Into Thales Over Suspected Bribery

The Serious Fraud Office said Thursday that it has opened an investigation into "serious allegations" of bribery and corruption at the international aviation and defense electronics giant Thales SA.
November 21, 2024
Sanctions Enforcer Alerts Businesses To Russian Oil Dealing

The U.K. sanctions enforcer warned companies on Thursday to be on the lookout for red flags when dealing in oil, after identifying cases where shipments from Russia have been manipulated to appear from elsewhere to thwart sanctions.
November 21, 2024
Capt. Tom's Family Benefited Financially From Charity Ties

The family of Captain Tom Moore earned more than £1 million ($1.27 million) from the charity set up in his name to fund the National Health Service and other good causes during the COVID-19 pandemic, a watchdog said Thursday in a scathing report.
November 21, 2024
LetterOne Loses 1st Security Act Challenge On Forced Sale

An investment group backed by Russian oligarchs has failed to convince a court that the U.K. government unfairly forced it to sell a regional broadband provider — in the first legal challenge to a decision under the National Security and Investment Act 2021.
November 21, 2024
FCA Weighing Wider Impact Of Motor Finance Ruling

The Financial Conduct Authority said it is considering issuing guidance amid growing legal uncertainty over commission arrangements following a bombshell court ruling on motor finance.
November 21, 2024
Ex-Barrister Loses Appeal Over Disbarment For Misconduct

A judge has tossed out a former barrister's bid to appeal against his disbarment, saying that a tribunal was right to conclude that it was fair to impose the most serious possible sanction because of his long history of infractions.
November 21, 2024
UK Sanctions Angola's Dos Santos, Others For Looting Nations

The British government hit three kleptocrats, including Africa's richest women, and their associates with sanctions and travel bans on Thursday, saying that they siphoned millions of pounds from their countries and concealed their illegal assets in the U.K.
November 20, 2024
5 Charged For 'Scattered Spider' Phishing Hacks, Crypto Theft

California federal prosecutors unveiled a criminal case Wednesday accusing five alleged members of the "Scattered Spider" cybercrime group of using a phishing scheme to access the confidential data of media and technology companies and steal $11 million worth of cryptocurrency from digital wallets.
November 20, 2024
Pfizer, Flynn Still Face Fines Over Epilepsy Drug Sale To NHS

Britain's competition tribunal issued a ruling Wednesday imposing £69 million ($87.2 million) in fines on Pfizer Ltd. and Flynn Pharma Ltd. for claims they overcharged for an epilepsy drug, after setting aside a decision from enforcers and finding its own violations.
November 20, 2024
Irish Social Democrats Run On Wealth Tax For Millionaires

Ireland's Social Democrats are campaigning for this month's general election on a 0.5% tax on individuals' assets over €1 million ($1.1 million) — excluding homes, family businesses, art and pensions — and 1% for assets over €2 million, according to its manifesto.
November 20, 2024
Teacher Stern Breached Regs With Payments, SRA Alleges

The English solicitors regulator accused commercial firm Teacher Stern LLP and two partners of effectively providing banking services to two clients by allowing them to transfer money that was not related to an underlying legal transaction or service.

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

Gov't Fraud Prevention Guide Proves To Be A Damp Squib

The Home Office’s recent guide to the Economic Crime Act’s failure to prevent fraud offense goes little further than offering broad suggestions, signaling the Serious Fraud Office’s encouragement of companies to self-police rather than an intention to pursue fraud allegations to trial, say lawyers at BCL Solicitors.
When Investigating An Adversary, Be Wary Of Forged Records

Warnings against the use of investigators who tout their ability to find an adversary’s private documents generally emphasize the risk of illegal activity and attorney discipline, but a string of recent cases shows an additional danger — investigators might be fabricating records altogether, says Brian Asher at Asher Research.
EU Enviro Directive Compliance Must Be A Priority For CEOs

The new European Union Environmental Crime Directive makes clear that criminal liability of a company for causing environmental damage does not preclude proceedings being brought against individuals who aid and abet, including CEOs, board members and other corporate leaders, say lawyers at Crowell & Moring.
New Offense Expands Liability For Corporate Enviro Fraud

The Economic Crime Act's new corporate fraud offense — for which the Home Office recently released guidance — underscores the U.K.'s commitment to hold companies accountable on environmental grounds, and in lowering the bar for establishing liability, offers claimants a wider set of tools to wield against multinational entities, say lawyers at Bracewell.
CMA Heat Maps Call Attention To Warning Letters

The Competition and Markets Authority's first heat maps illustrating the location of warning letters sent to businesses are intended to increase awareness of the letters, and provide new information that reflects distribution and density across the U.K., says Matthew Hall at McGuireWoods.
What UK Security Act Report Indicates For Future Gov't Policy

Following the recent publication of the National Security and Investment Act report on the scrutiny of proposed investments, it will be interesting to see how the act’s powers fit into a government policy that plans to cut regulatory obstacles, while maintaining a hard line on national security, say lawyers at Katten Muchin.
What UK Takeover Code's Narrowed Focus Will Mean For Cos.

In narrowing its scope of application, the U.K. Takeover Panel's forthcoming amended code will have practical implications for U.K.-registered companies and ultimately provide greater market clarity and certainty, say lawyers at Davis Polk.
Examining UK And EU Approaches To Sanctions Enforcement

In light of the Financial Conduct Authority’s recent £28.9 million fine of Starling Bank for its lax sanctions screening processes, businesses should understand both the U.K.’s and the European Union’s enforcement approaches, the larger sanctions landscape and the importance of cooperation, says Angelika Hellweger at Rahman Ravelli.
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.
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.
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.
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.
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.
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.
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.