Corporate Crime & Compliance UK

SFO's 1st UWO Hints At New Strategy In Hunt For Illicit Funds

The first unexplained wealth order secured by the Serious Fraud Office, against the former wife of a convicted solicitor, suggests that the agency is thinking creatively about how to use the dirty-money tools at its disposal, although lawyers wonder whether it will be a durable strategy.

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.

Meet The Lawyers Tapped To Defend In Glencore Bribery Case

Six former Glencore employees, including the commodity giant's billionaire former head of oil, who have been charged with bribery by the Serious Fraud Office, have tapped an all-star list of the U.K.'s most experienced trial solicitors and barristers with a track record of prevailing against the white-collar agency.

Lynch's Death Puts UK-US Extradition Under The Microscope

The death of technology tycoon Mike Lynch has triggered calls by a lawmaker to scrap Britain's extradition agreement with the U.S. amid proposals that U.K. citizens should be prosecuted at home, although lawyers say the status quo is unlikely to change.

February 04, 2025
Israeli Bids To Block US Extradition Over Prison Conditions

An Israeli private investigator accused of hacking environment activists to help Exxon Mobil Corp. undermine climate-change litigation argued in court Tuesday that his extradition to the U.S. should be blocked due to "inhumane treatment" in New York prisons.
February 04, 2025
Whistleblowing Failures Cost Gov't £426M, Report Finds

Failing to heed whistleblowers contributed to three major scandals that cost the U.K. government over £426 million ($529 million), a whistleblowing charity said in a report Tuesday as it demanded urgent reforms.
February 04, 2025
UniCredit Bids To Undo Ruling Blocking Gazprom Unit's Claim

UniCredit Bank AG urged an appeals court Tuesday to overturn an order blocking a Gazprom joint venture from bringing a €450 million ($467 million) claim against it in Russia under bond guarantees linked to an aborted gas plant project.
February 04, 2025
Salmon Farmers Fight To Gut Retailers' £675M Cartel Case

A group of salmon producers fought on Tuesday to keep a £675 million ($843 million) cartel claim brought by several of the U.K.'s largest supermarkets out of Britain, arguing at a London tribunal that the case should be heard in Norway.
February 04, 2025
Sustainable Growth Must Take Pensions Priority, LCP Says

Government plans to drive growth in the U.K. through redirected investment from retirement savings schemes must prioritize environmental concerns and sustainability, a consultancy said Tuesday.
February 04, 2025
FCA Warns Smaller Payment Firms Of Consumer Duty Failings

The City watchdog has warned smaller payments firms that they sometimes fail to act in the best interests of customers and have weaknesses in their financial crime controls.
February 03, 2025
'Far-Reaching' EU Ban On High-Risk AI Models Now In Effect

The European Union on Sunday ushered in key laws to rein in the use of artificial intelligence systems that pose an "unacceptable risk," but a lack of guidance from the bloc has companies in the dark.
February 03, 2025
SFO Review Finds No Evidence Of Unsound Convictions

The Serious Fraud Office's review into its old electronic discovery system has not produced any evidence that past convictions are unsound, the agency said on Monday.
February 03, 2025
All-Risk Insurers Demand War-Risk Payouts For Stranded Jets

Insurers that covered aircraft lessors whose planes were stranded in Russia after the invasion of Ukraine told a London court on Monday that other insurers that covered the lessors for war-related risks should pay out for the allegedly lost aircraft.
February 03, 2025
Uyghur Rights Group To Sue FCA If Shein Gets LSE Listing

A Uyghur human rights group has threatened to take the Financial Conduct Authority to court if it permits Shein to list on the London Stock Exchange, stepping up its fight against the ultra-fast-fashion giant over slavery concerns.
February 03, 2025
EPPO Probes Steel Tax Fraud In UK And Germany

The European Public Prosecutor's Office is investigating suspected tax fraud linked to imports of Indian steel into Germany via the U.K. to dodge the European Union's import duties, the office said Monday.
February 03, 2025
FCA Response To Critical Report 'Disappointing,' MPs Say

The Financial Conduct Authority's response to a highly critical parliamentary report has been lackluster and continues to demonstrate that the regulator is "in dire need of transformation," the MPs who penned the report said Monday.
February 03, 2025
EU Watchdog Warns That All Crypto Firms Are High Risk

The European Union's finance watchdog has briefed national regulators authorizing crypto-assets firms to consider every candidate high risk, particularly from money laundering.
February 03, 2025
Ex-Goldman Analyst Told To Pay £586K For Insider Trading

The Financial Conduct Authority said Monday that it has secured £586,000 ($722,000) from a former Goldman Sachs employee imprisoned for insider dealing after using price-sensitive information to trade in shares.
January 31, 2025
Brexit Five Years On: The Legal Landscape After Europe

Five years after the U.K. formally left the European Union, Law360 looks at how Brexit has changed the legal, regulatory and financial terrain.
January 31, 2025
UK Cos. See Brexit's Legacy In Steeper Compliance Costs

British companies doing business in the European Union have seen their tax compliance burden rise as the U.K.'s tax rules have moved further away from EU rules in the five years since Brexit, though the largest companies have been able to absorb the costs.
January 31, 2025
Ex-IP Co. Director Says Lawyer, Founders Hid $40M Takeover

A former director of a celebrity intellectual property licensing company has claimed in court filings that two fellow directors, aided by an ex-Russells Solicitors partner, concealed plans for a $40 million takeover to try to convince him to sell his shares on the cheap.
January 31, 2025
Valorem Sues Former CEO For Violating Russia Sanctions

A luxury perfume group has sued its former chief executive officer, who is accused of bragging to a private investigator about selling his product to Russia in breach of sanctions, for fiduciary and contractual breaches and failure to protect its intellectual property rights.
January 31, 2025
Ex-BigLaw Atty Can't Escape OneCoin Conviction At 2nd Circ.

The Second Circuit on Friday upheld a former Locke Lord LLP partner's conviction and 10-year sentence for helping launder roughly $400 million in proceeds from the multibillion-dollar OneCoin cryptocurrency scheme, rejecting the attorney's contention that a sole cooperating government witness' perjury and other purported errors warranted reversing his punishment.
January 31, 2025
UK Litigation Roundup: Here's What You Missed In London

This past week in London has seen another claim by Woodford investors against Hargreaves Lansdown in the widening £200 million ($248 million) dispute over the fund's collapse, a solicitor barred for his role in a suspected advance fee fraud face action by a Swiss wholesaler, and The Resort Group, which markets investments in luxury hotel resorts, hit with a claim by a group of investors. Here, Law360 looks at these and other new claims in the U.K.
January 31, 2025
Cleaners Punished For Union Membership Win £101K

DOC Cleaning must pay £101,479 ($126,010) for mistreating and belittling six staff members in order to dissuade them from participating in union activities, an employment tribunal has ruled.
January 31, 2025
SFO Gets Nod To Bring DPA Enforcement Case Against Guralp

A judge ruled Friday that the Serious Fraud Office could proceed with efforts to hold a seismic technology company liable for breaching its corporate bribery settlement, in its first-ever attempt to enforce the terms of a suspended prosecution agreement.
January 31, 2025
Claims Management Sector Warned Over Misleading Adverts

The Financial Conduct Authority has written to claims management companies warning that it will respond to multiple cases of misleading advertising with new consumer protection measures.
January 31, 2025
CMA Beats Motorola In Emergency Network Price Cap Appeal

Motorola has failed in its bid to overturn a decision by the antitrust watchdog that restricted how much the technology giant can charge the emergency services in Britain to use its Airwave network, after an appeals court found the move was "fully justified."
January 31, 2025
BBC Apologizes For Mismanaging Russell Brand Complaints

The BBC has apologized to members of staff who felt unable to raise concerns about Russell Brand's behavior while he worked for the broadcaster because they "felt that there was no point in raising a concern as it would not be listened to."

Editor's Picks

UK Russia Sanctions Face Landmark Test At Supreme Court

The U.K.'s sanctions regime faces a major test on Wednesday as billionaire Eugene Shvidler seeks to have his financial restrictions cast off — the first case to challenge Russian sanctions that has reached the country's highest court.
NCA Has 'Pokers In The Fire' On Sanctions, Top Official Says

The effectiveness of Britain's sanctions regime should not be judged solely by court victories, according to a top U.K. law enforcement official who said there are "unrealistic" expectations about the policing of sanctions imposed in response to the war in Ukraine.
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.

Expert Analysis

What To Know As EU Urges Outbound Investment Reviews

A recent European Commission recommendation urges European Union member states to review outbound investments in certain critical technologies sectors, but does not clarify the next steps for states once information on relevant transactions in third countries is received, say lawyers at Cleary.
Competition Act Brings Important UK Merger Control Changes

Although recently effective sections of the Digital Markets, Competition and Consumers Act provide clarity on the transactions that may attract Competition and Markets Authority attention, some reforms potentially expanding the regulator's scope may be concerning to transacting parties, say lawyers at Fried Frank.
How GCs Can Protect Cos. From Geopolitical Headwinds

Geopolitical uncertainty is perceived by corporate leaders as the biggest short-term threat to global business, but many of the potential crises are navigable if general counsel focus on what is being said about a company and what the company is doing, says Juliet Young at Schillings.
What BT Ruling Will Mean For UK Class Actions

The Competition Appeal Tribunal’s recent dismissal of a £1.3 billion mass consumer claim against BT, the first trial decision for a U.K. collective action, reminds claimants and funders of the high bar for establishing an abuse, and provides valuable insight into how pending mass consumer cases may be resolved, say lawyers at Ashurst.
Navigating PRA's Data Request For Crypto-Asset Exposure

The Prudential Regulation Authority’s recent data request for details on financial institutions' crypto-asset exposures should be used as an opportunity for firms to update their compliance procedures, and consider the future use of crypto-assets and related services, says James Wickes at RPC.
Key Points From FCA Financial Crime Guide Updates

The Financial Conduct Authority’s recent updates to its financial crime guide reflect the regulator’s learnings on sanctions following Russia's invasion of Ukraine, highlighting and clarifying consumer duty, anti-money laundering and other compliance expectations, say lawyers at Womble Bond.
Tax Directive Marks Milestone In Harmonizing EU System

The Council of the European Union’s recently adopted tax directive is a significant step toward streamlining and modernizing procedures for member states, and will greatly reduce administrative burden and compliance costs for cross-border investors, says Martin Phelan at Simmons & Simmons.
Why Nonfinancial Misconduct Should Be On Firms' Radar

Following a recent Financial Conduct Authority survey showing an increase in nonfinancial misconduct, the regulator has made clear that it expects firms to have systems in place to identify and mitigate risks, says Charlotte Pope-Williams at 3 Hare Court.
What New UK Code Of Conduct Will Mean For Directors

The Institute of Directors’ new voluntary code of conduct is intended to help directors make better decisions and enable U.K. businesses to win back eroded public trust, although, with no formal means of enforcement, its effectiveness could be limited, says Sarah Turner at Eversheds Sutherland.
Russian Bankruptcy Ruling Shows Importance Of Jurisdiction

The U.K. Supreme Court's recent decision not to assist a Russian receiver in Kireeva v. Bedzhamov will be of particular interest in cross-border insolvency proceedings, where attention must be paid to assets outside the jurisdiction, and to creditors, who must consider carefully where to apply for a bankruptcy order, say lawyers at McDermott.
Key Points From Trade Sanctions Office 'No-Russia' Guidance

The Office of Trade Sanctions Implementation’s recent guidance provides best practice suggestions that can help businesses mitigate the risk of their exports being targeted by Russian circumvention efforts, while noting that there is no one-size-fits-all approach to compliance, says Alexandra Melia at Steptoe.
How Board Directors Can Adapt To Shifting Governance Tides

With European Union regulatory initiatives trending toward a sharp focus on ESG reporting requirements and ramping up pressure on corporate boards, directors should play a more active part in ensuring business objectives are aligned with regulatory demands, says Kallia Gavela at Alvarez & Marsal.
How Listing Act Measures Will Modernize EU Capital Markets

The new European Union Listing Act, in line with the capital markets union initiative, aims to simplify market access for small and midsize enterprises, laying a foundation for a more integrated framework and representing a modernization milestone, say lawyers at Cleary.
Forced Labor Imports Raise Criminal Risks For UK Retailers

Last summer’s London appeals court ruling applying the Proceeds of Crime Act to products made with forced labor, potential legislative reforms and recent BBC allegations about Chinese produce harvested by Uyghur detainees suggest British importers and retailers should increase scrutiny of their supply chains, says Ian Hargreaves at Quillon Law.
Insider Info Compliance Highlights From New FCA Guidance

The Financial Conduct Authority's recent guidance to companies on identifying inside information clarifies the regulator's expectation of case-by-case assessment, helpfully highlighting that abuse of U.K.-regulated markets can arise earlier than some might think, say lawyers at Sullivan & Cromwell.