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 29, 2024
Top Corporate Crime Cases To Watch For The Rest Of 2024

The Serious Fraud Office's intention to charge individuals with bribery over Glencore's dealings in Nigeria, a major bitcoin money laundering trial and the ongoing legal battles between ENRC and the SFO are some of the major white-collar crime cases on the horizon.
July 29, 2024
Bahrain Revives Immunity Bid In Dissident Spyware Case

Bahrain told an appeals court Monday that state immunity prevents two dissidents from suing the Gulf state in England to claim it infected their computers with malware to spy on them, because not all the alleged acts took place in the U.K.
July 29, 2024
Saudi Investor Revives $5M Legal Costs Claim Against RLS

A London court has revived a negligence claim brought by a Saudi Arabian property investor against a law firm for the costs of investigating and litigating an alleged £35 million ($45 million) fraud, finding that an earlier settlement does not block him bringing the allegations.
July 29, 2024
Zurich Invests $60M In Cyber Insurance Provider For SMEs

Swiss insurance giant Zurich has invested $60 million in Cowbell, a provider of cyberinsurance for small businesses, the digital risk company said, amid growing industry concerns over cyberthreats.
July 29, 2024
FCA Weighs Taking Protection From Some Insurance Clients

The Financial Conduct Authority proposed on Monday a change to the criteria of classifying a small business as a commercial insurance client by removing consumer protection rules from some firms when they buy insurance products.
July 29, 2024
NCA Seizes Assets As Russian Oligarch Ends Sanctions Fight

The National Crime Agency seized more than £768,000 ($986,000) belonging to Russian oligarch Petr Aven on Monday after reaching a settlement in its first attempt to recover frozen assets linked to suspected sanctions evasion since sweeping restrictions came into force.
July 29, 2024
Mozambique Claims Victory In UK Tuna Bond Scandal Case

Mozambique largely won its mammoth corruption claim against a shipbuilding company on Monday over a bribery scheme used to pay kickbacks to public officials to tie it into a financing package for a tuna fishing fleet that wrecked the southern African country's economy.
July 26, 2024
SFO Probed ENRC Investigator For Separate Media Disclosure

A former Serious Fraud Office investigator accused of leaking information about a corruption investigation into mining company Eurasian Natural Resources Corp. was subject to disciplinary proceedings for making disclosures about another matter to the media, the SFO confirmed Friday.
July 26, 2024
Funders Face Battles Over Returns A Year On From PACCAR

A year on from the Supreme Court's landmark decision that upended the financing of class actions, and failing any immediate legislative solution, lawyers say litigation funding agreements will continue to face scrutiny with new challenges to the returns funders can expect to earn.
July 26, 2024
UK Gov't Denies Leaked Greensill Probe Caused Him Harm

The Insolvency Service leaked private details of an investigation into Lex Greensill, the founder of collapsed finance company Greensill Capital, to the national press, the government has admitted in court filings — but denied it caused him any harm.
July 26, 2024
NCA Data Project Set To Catch Financial Criminals

The National Crime Agency and seven U.K. banks have forged a major public-private partnership to use account data to help catch financial criminals and prevent fraud and money laundering, the agency said Friday.
July 26, 2024
EU Banks Must Improve Cyberattack Protection, ECB Says

Lenders in the eurozone still suffer from "shortcomings" in fighting against and recovering from a severe — but plausible — cyberattack, the European Central Bank said Friday after it conducted a resilience stress test.
July 26, 2024
UK Litigation Roundup: Here's What You Missed In London

This past week in London has seen U.K. band The 1975 face action by Future Sound Asia after its performance in Malaysia resulted in a festival's cancelation, Spectrum Insurance hit by The Motoring Organization following their dispute over information misuse, and a former police constable pursue defamation against a colleague for allegedly instigating a campaign of harassment against her. Here, Law360 looks at these and other new claims in the U.K.
July 26, 2024
Fraudster Sentenced For Instagram Motor Insurance Scam

A man who made almost £18,000 by operating as a "ghost broker" and selling invalid car insurance policies on Instagram has been handed a suspended prison sentence of 24 months at a London court, City Police has said.
July 26, 2024
Israeli Investigator Faces Jan. Hearing On Hacking Extradition

Israeli private investigator Amit Forlit will face a hearing in January to determine whether he will be extradited to the United States for allegedly conducting illegal hacking campaigns aimed at tarnishing organizations involved in environmental litigation, a London judge said Friday.
July 25, 2024
Vince Cable Missed Shoosmiths' Warning Over Post Office IT

Shoosmiths LLP warned the government about problems with the IT accounting software which incorrectly showed shortfalls that the Post Office used to prosecute innocent people in 2012, documents disclosed to the inquiry into the scandal on Thursday showed.
July 25, 2024
Audit Watchdog Sanctioned Firms £48M Last Year

The Financial Reporting Council revealed Thursday that it fined firms a total of £48.2 million ($62 million) in the financial year ended March 31, including a £21 million fine against auditor KPMG related to its accounting for construction giant Carillion prior to its collapse in 2018.
July 25, 2024
Hayes Can Appeal Rate Rigging Conviction At Top UK Court

Two traders convicted of manipulating benchmark interest rates have been granted permission to appeal their cases to the U.K.'s highest court, their representatives said on Thursday.
July 25, 2024
Plan To Return WealthTek Clients' Money Gets Green Light

The Financial Conduct Authority said Thursday that the High Court has approved a plan by the joint special administrators of collapsed regulated wealth manager WealthTek LLP to return money and investments it held for clients.
July 25, 2024
4 Banks Ordered To Comply With UK Retail Competition Rules

HSBC, Lloyds, TSB and Allied Irish Banks have broken rules designed to help customers find the best deals, Britain's antitrust authority said Thursday, adding that it has ordered the lenders to comply with competition regulation.
July 25, 2024
FCA Consumer Duty Deadline May Spark Clash With UK Gov't

The new Labour government and the Financial Conduct Authority could be heading for a clash over what constitutes a vulnerable consumer and how the laws protecting them from abuse should be enforced.
July 25, 2024
Coinbase Unit Fined £3.5M For Crypto-Related Breaches

The Financial Conduct Authority said Thursday it has fined a payments company £3.5 million ($4.5 million) for "repeatedly breaching" restrictions against enabling crypto-asset trading, the first time the watchdog has taken enforcement action under regulations governing electronic money.
July 24, 2024
Ex-Barclays CEO Told To Testify In Appeal Of Qatar Fees Fine

Former Barclays CEO John Varley was ordered by a London tribunal Wednesday to give evidence in the bank's appeal against a £50 million ($64.6 million) fine over its emergency fundraising with Qatar during the 2008 financial crash.
July 24, 2024
Gas Plant Subcontractor Can't Ax £165M Fraud Claims

A London appeals court refused to block an engineering company's £165 million ($213 million) fraud claims Wednesday, ruling that although the action should have been brought earlier, it is genuine, and the delay has caused little difference to the case's progression.
July 24, 2024
EU Trade Body Warns Against FCA Enforcement Plans

A trade body for European financial firms has warned that the Financial Conduct Authority's proposed naming of companies in enforcement investigations would make the U.K. an international outlier, damaging competitiveness.

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

Unpacking The New Concept Of 'Trading Misfeasance'

In addition to granting one of the largest trading awards since the Insolvency Act was passed in 1986, the High Court recently introduced a novel claim for misfeasant trading in Wright v. Chappell, opening the door to liability for directors, even where insolvent liquidation or administration was not inevitable, say lawyers at Greenberg Traurig.
EU WhatsApp Deletion Fine Sends Clear Message

The recent European Commission fine of International Flavors & Fragrances — the first for the deletion of social media messages during a dawn raid — although halved as a result of IFF's cooperation, shows the commission's view on obstruction poses a real risk to companies under investigation, says Matthew Hall at McGuireWoods.
Key Takeaways From Proposed EU Anticorruption Directive

The European Commission's anticorruption proposal, on which the EU Council recently adopted a position, will substantially alter the landscape of corporate compliance and liability across the EU, so companies will need to undertake rigorous revisions of their compliance frameworks to align with the directive's demands, say lawyers at Linklaters.
Implications Of EU Network Directive For Data Center Owners

With the October implementation deadline of the EU’s new cybersecurity regime under the Network Systems Directive fast approaching, data center owners and operators need to consider compliance steps, and U.K. companies providing services in the EU should take note, say lawyers at Bird & Bird.
New EU Guidelines Provide Insights On Global AI Regulation

The European Data Protection Supervisor’s first guidelines on artificial intelligence only apply to governmental bodies, but together with the EU AI Act they demonstrate a strong and prescriptive policy, and offer a glimpse into what could be the next phase in world AI regulation, says Kevin Benedicto at Redgrave.
Boeing Plea Deal Is A Mixed Bag, Providing Lessons For Cos.

The plea deal for conspiracy to defraud regulators that Boeing has tentatively agreed to will, on the one hand, probably help the company avoid further reputational damage, but also demonstrates to companies that deferred prosecution agreements have real teeth, and that noncompliance with DPA terms can be costly, says Edmund Vickers at Red Lion Chambers.
Keeping Up With Carbon Capture Policy In The US And EU

Recent regulatory moves from the U.S. Environmental Protection Agency and the European Commission in the carbon capture, sequestration and storage space are likely to further encourage the owners and operators of fossil fuel-fired power plants to make decisions on shutdowns or reconfiguration to meet the expanding requirements, say Inosi Nyatta and Silvia Brünjes at Sullivan & Cromwell.
How AI Treaty Will Further Global Governance Cooperation

The EU’s recently adopted treaty on artificial intelligence represents a significant step toward global cooperation in AI governance in emphasizing human rights obligations, although additional guidance and clarity would be beneficial to minimize varied interpretations at national level, say lawyers at Eversheds Sutherland.
EU Investor-State Dispute Transparency Rules: Key Points

The European Union's recent vote to embrace greater transparency for investor-state arbitration will make managing newly public information more complex for all parties in a dispute — so it is important for stakeholders to understand the risks and opportunities involved, say Philip Hall, Tara Flores and Charles McKeon at Thorndon Partners.
How Regulation Of Tech Providers Is Breaking New Ground

The forthcoming EU regulation on digital operational resilience and the U.K. critical third-party regime, by expanding the direct application of financial services regulation to designated technology providers, represent a significant development that is not to be underestimated, say David Berman and Emily Lemaire at Covington.
Takeaways From EU's Initial Findings On Apple's App Store

A deep dive into the European Commission's recent preliminary findings that Apple's App Store rules are in breach of the Digital Markets Act reveal that enforcement of the EU's Big Tech law might go beyond the literal text of the regulation and more toward the spirit of compliance, say William Dolan and Pratik Agarwal at Rule Garza.
Why Trustees Should Take Note Of Charity Code Consultation

The Charity Governance Code Steering Group's recently launched governance code consultation is unlikely to result in a radical overhaul, but with the bigger issue being awareness and application by smaller underresourced charities, trustees should engage with the process to help shape the next iteration of this valuable tool, says Chris Priestley at Withers.
What EU Net-Zero Act Will Mean For Tech Manufacturers

Martin Weitenberg at Eversheds Sutherland discusses the European Council’s recently adopted Net-Zero Industry Act and provides an overview of its main elements relevant for net-zero technology manufacturers, including benchmarks, enhanced permitting procedures and the creation of new institutions.
Complying With EU Commission's Joint Purchasing Rules

One year after the European Commission released its revised guidelines on horizontal cooperation agreements, attorneys at Crowell & Moring reflect on the various forms such agreements can take, and how parties can avoid structuring arrangements that run afoul of competition law.
Tips For Implementing EU Sustainability Reporting Guidance

Lawyers at Sullivan & Cromwell discuss the European Financial Reporting Advisory Group’s recently published guidance on double materiality assessments and offer takeaways on achieving a sustainability directive-compliant process that could enhance clarity and consistency among multinational stakeholders.