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.
December 02, 2024
Skat Settles With Ex-Barclays Director In £1.4B Fraud Case

The Danish tax authority has settled its claim against a former Barclays Capital director and four companies that it sued alongside dozens of others over an alleged scheme to defraud it of £1.4 billion ($1.8 billion) in tax revenue.
December 02, 2024
Sports Direct's Ashley Says HMRC Bungled His Data Request

Sports Direct International PLC founder Michael Ashley argued in a London court Monday that the U.K.'s tax agency improperly handled his data request related to its probe into his 2012 sale of real estate assets, calling its alleged failings "significant, wide-spread and persistent."
December 02, 2024
EU Adopts Laws To Bolster Cybersecurity Across Sectors

The European Council announced Monday that it has adopted new laws to strengthen its cybersecurity measures by establishing an alert system across the bloc to better share information between the public and private sector.
December 02, 2024
Lewis Silkin To Probe Claims Against 'MasterChef' Co-Host

The production company behind "MasterChef" has appointed Lewis Silkin LLP to lead a probe into a series of harassment allegations against one of its presenters, Gregg Wallace.
December 02, 2024
Mogul Can't Duck £102M Debt Using Sham Settlement

Property mogul Andrew Ruhan colluded with a British businessman convicted for fraud to cook up sham litigation to escape a £102 million ($129 million) debt owed to the liquidators of three luxury hotels, a London judge has ruled.
December 02, 2024
5 Convicted In €14M COVID Test VAT Fraud Scheme

A German court convicted five people for their roles in a value-added tax fraud scheme involving the sale of COVID-19 tests that caused about €14 million ($14.7 million) in VAT losses, the European Public Prosecutor's Office said.
December 02, 2024
Former Hausfeld Pro Tapped For Solicitor General In UK Gov't

A former competition partner at Hausfeld LLP was tapped to become the next solicitor general in a surprise appointment late Monday as the outgoing senior law officer joins the U.K.'s justice ministry just months into the job.
December 02, 2024
Compensation Fund Open To Claims On Failed SIPP

Customers of a self-invested personal pension operator can now file compensation claims through the Financial Services Compensation Scheme following the company's administration and liquidation earlier this year.
December 02, 2024
FCA Urges Better AML Regulation Of Conveyancing

The supervisory body for watchdogs in the legal and accountancy sectors has told them that they must take further steps to prevent money laundering in the transfer of ownership in U.K. property transactions.
November 29, 2024
Banned Lawyer Must Pay £68K For False Legal Aid Claims

A solicitor has been struck off the roll and ordered to pay more than £65,000 ($82,700) in legal costs for breaching Solicitors Regulation Authority accounting rules, failing to ensure funds were properly returned to clients and making legal aid claims for unrecorded hospital attendances.
November 29, 2024
Greensill Rejects Gov't's 'Immaterial' Defense To Leaked Probe

Lex Greensill has said a claim by the Department for Business and Trade that leaking private details of an investigation into him had not damaged his reputation is "immaterial" to his data and privacy claim against the government.
November 29, 2024
Lombard Odier Indicted In Switzerland For Money Laundering

Swiss prosecutors said on Friday that they have indicted Lombard Odier and one of its former employees for "aggravated money laundering" — a rare move against one of the country's largest wealth managers.
November 29, 2024
UK Litigation Roundup: Here's What You Missed In London

This past week in London has seen the National Crime Agency file a civil recovery order against a Chinese couple suspected of £29 billion ($37 billion) banking fraud, Norwich City FC of the second tier of English football hit two drinks companies with IP claims, and Owen Jones of the Guardian newspaper sue Telegraph columnist Allison Pearson for libel.
November 29, 2024
Pension Trustees To Repay £5.2M For Investment Breaches

A group of pension scheme trustees must repay more than £5.2 million ($6.6 million) into three retirement savings plans after the sector's ombudsman found they had breached their duties and acted dishonestly with a number of dubious investments.
November 29, 2024
BHP Exec Pressed On Mining Giant's Dam Safety Procedures

A former executive at BHP Billiton told a court on Friday that he believes the mining giant is likely to have reviewed its safety procedures after the collapse of a dam that happened before the Brazilian disaster at the heart of the trial.
November 29, 2024
Audit Watchdog Urges EU To Curb Harmful Tax Practices

The European Union is still not doing enough to stop harmful corporate tax practices that are costing governments more than €100 billion ($105 billion) a year in revenue, the bloc's independent audit watchdog has warned.
November 28, 2024
Barclays Fights 'Shareholder Rule' In Privilege Dispute

Investors sought to prevent Barclays PLC asserting legal privilege over documents requested for disclosure in securities fraud litigation at a court hearing Thursday, after a judge ruled in a separate case that a "shareholder rule" exception to legal privilege did not exist.
November 28, 2024
Police Detain 32 People In Raids On €297M VAT Fraud Network

Police have detained more than 30 people in raids on a €297 million ($313 million) value-added tax fraud network that spanned 16 EU countries, the European Public Prosecutor's Office said Thursday.
November 28, 2024
UK To Ban 'Rogue,' 'Shameless' Firms From Hiring Overseas

Employers that breach visa rules to exploit foreign workers will be banned from hiring overseas help for at least two years, the government said Thursday as it launched measures to crack down on abuse of the immigration system.
November 28, 2024
EU Closes Tax Investigations Into Amazon, Fiat, Starbucks

The European Commission said Thursday that it is closing tax investigations into three multinational companies — Amazon, Fiat and Starbucks — following a series of high-profile court decisions.
November 28, 2024
Lawyer Duped By Fraudulent Barrister Overturns Firm Closure

A court has ordered the solicitors' regulator to end the closure of a law firm, concluding that it was unlikely that its manager knew that a "fraudulent impostor" was forging property titles and making false mortgage applications.
November 28, 2024
BHP Exec Denies Mining Giant's Role In Brazil Dam Disaster

The former chief financial officer of Australian miner BHP Billiton told the High Court on Thursday that it was a "separate entity" from Samarco — the company responsible for running a mine that caused Brazil's worst environmental disaster.
November 28, 2024
UK Trial Of Bulgarians Accused Of Spying For Russia Begins

Three Bulgarians "tasked to spy" for Russia gathered information on prominent targets before passing it along to a Russian agent, a prosecutor told the first day of a trial in London on Thursday.
November 28, 2024
Former Finance Execs Must Pay £45M For Takeover Violations

The financial troubles of three former executives of MWB Group, an investment firm that has collapsed, does not preclude them from owing £44.8 million ($56.8 million) in compensation for violating the U.K. takeover rules by deceiving shareholders, a court ruled on Thursday.
November 28, 2024
Ex-HMRC Compliance Officer Helped Husband Launder £3M

A former compliance officer with HM Revenue and Customs has been handed a suspended sentence for her role in a £3 million ($3.8 million) money laundering operation carried out by her husband, the Crown Prosecution Service has said.

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

Cross Market Drill Highlights Operational Resilience Priorities

The U.K.’s recent cross-market major infrastructure failure simulation exercise, demonstrates that operational resilience of the financial sector is high on the regulatory agenda, and the findings should ensure that the sector develops collective capabilities to deliver improvements, say lawyers at Taylor Wessing.
Update On Timings Key For Online Safety Act Compliance

The Office of Communications’ recent update on Online Safety Act deadlines is significant because applicability of the act has been contingent on this guidance, and with clarification of enforcement details, organizations can now prepare for their risk assessment, say lawyers at Bird & Bird.
What The Future Of AI In Financial Services Looks Like

Artificial intelligence is rapidly transforming the global financial services industry, with a hybrid model likely to evolve where AI handles routine tasks and humans focus on strategy and decision-making, so financial institutions should work with regulators to establish ethical standards and meet regulatory expectations without stifling innovation, say lawyers at Womble Bond.
FCA Survey Results Reveal Rise In Nonfinancial Misconduct

After a Financial Conduct Authority survey recently reported a significant rise in nonfinancial misconduct, there are a number of preventive steps firms should take to create a healthy workplace environment and mitigate the risk of increased regulatory scrutiny, say lawyers at WilmerHale.
Online Safety Act Heightens Duties Of Social Media Platforms

The Office of Communications’ latest update on how it is implementing the Online Safety Act is part of a wider evolving debate, but while social media platforms wait for the law to take full effect, they can focus on establishing clear online safety policies, training programs for staff and proactive engagement with regulators, says Dan Adams at Arbor Law.
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.