Corporate Crime & Compliance UK

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.
January 03, 2025
'Don Car-Leone' Loses £3.5M Bitcoin Civil Recovery Battle

A convicted drug trafficker, fraudster and money launderer failed to stop efforts by prosecutors to recover an estimated £3.5 million ($4.3 million) worth of bitcoin when a London judge ruled Friday that the cryptocurrency was obtained through drug trafficking and money laundering.
January 03, 2025
Shein GC Gets Uyghur Labor Abuse Dossier Amid UK Inquiry

A Uyghur rights group said Friday that it had handed Shein's general counsel a dossier containing evidence of possible forced labor in the Chinese clothing seller's supply chain days before the lawyer faces questions from a U.K. parliamentary committee.
January 03, 2025
Investment Firm Calls On UK To Rule Out Pension Tax Hikes

The U.K. should pledge no changes to pension tax benefits for the next four years to assuage consumer fears of the government following up on hikes to other taxes with more increases, according to a survey by an investment firm.
January 03, 2025
Complaints Commissioner To Warn FCA About P2P Lending

The Complaints Commissioner for financial regulators has undertaken to write to the Financial Conduct Authority on significant issues in the peer-to-peer lending sector.
January 03, 2025
Dealer Of Unreleased Famed Musicians' Tracks Avoids Prison

A dealer of stolen unreleased music by famous artists obtained through cryptocurrency exchanges on the dark web was handed a suspended prison sentence on Friday for 14 counts relating to buying and selling copyrighted music without the consent of artists or labels.
January 03, 2025
Nationwide Wins Bid To Ax Contractor's Whistleblowing Claim

A former contractor at Nationwide Building Society had his case against the bank dismissed Friday after an Employment Tribunal judge ruled that he brought his whistleblowing case too late and without good reason for his delay.
January 03, 2025
Former Top Racehorse Owner John Dance Denies £64M Fraud

A former leading racehorse owner denied nine charges in connection with a £64 million ($79.4 million) fraud on Friday following an investigation by the Financial Conduct Authority into the client accounts of a wealth management firm.
January 03, 2025
UK Litigation Roundup: Here's What You Missed In London

This past week in London has seen Chris Eubank Jr. hit with a libel claim from a boxing promoter, a perfume boss face proceedings from his businesses following sanctions violations claims, and Israeli broadcasters file intellectual property claims against BT and Sky. Here, Law360 looks at these and other new claims in the U.K.
January 03, 2025
UK Levy Hike Drives Labor Costs Up In 2025, Think Tank Says

U.K. businesses are facing a spike in labor costs, thanks to the government's decision to raise employers' National Insurance contributions, a payroll levy used to fund social programs, a think tank said Friday.
January 03, 2025
Competition Lawyer Files £2.1B Microsoft Price Abuse Claim

A competition law expert has sued Microsoft for up to £2.1 billion ($2.6 billion) on behalf of thousands of U.K. businesses, accusing the technology giant of charging abusive licensing fees for Windows Server, a software used in cloud computing.
January 02, 2025
Ex-Kennedys Manager Fined £27K For Due Diligence Failures

A former manager with Kennedys Law LLP has been fined £27,500 ($34,000) for carrying out inadequate client due diligence surrounding a property development fraud that saw directors pocket over £6.5 million of their investors' money.
January 02, 2025
Disbarred Solicitor Loses Bid To Sue BSB Over Inn's Rejection

A tribunal has ruled that a disbarred solicitor cannot pursue disability discrimination claims against the Bar Standards Board, finding his High Court appeal over his rejection from an Inn of Court barred further tribunal proceedings.
January 02, 2025
January Sale Scam Behind Transaction Row Rise, Lloyds Says

Scammers creating fake websites to entice customers to purchase items in last January's online sales caused a 40% spike in credit card transaction disputes that month compared to the normal monthly average, Lloyds Bank said Monday.
January 02, 2025
England's 1st Barrister-Partner Loses Harassment Claim Bid

A self-employed barrister has been told she cannot sue the Bar Standards Board for racial harassment after she learned about "improper and damaging communication" between the regulator and her neighbors that sparked a 17-year dispute.
January 02, 2025
EU's 1st Financial Regulation Deal With Japan In Force

The European Union said that a first-ever agreement with Japan designed to improve regulation in banking and other financial services and to combat money laundering has come into force.
January 02, 2025
Motorola Faces £650M UK Claim Over Emergency Network

Motorola is facing a £650 million ($809 million) mass claim in the U.K. that alleges the telecommunications giant breached competition law by charging excessive and unfair prices for its secure radio network used by Britain's emergency services.
January 02, 2025
Elite Law Denies Fault In Lender's £1.9M Loan Fraud Case

An English firm of solicitors has denied a claim that it cost a lender £1.9 million ($2.4 million) by failing to spot that the borrower of a property loan was allegedly a fraudster, telling a London court that it was not obliged to verify his identity.
January 01, 2025
European Tax Policy To Watch In 2025

The European Union may have to go it alone on international tax policy in 2025, especially because President-elect Donald Trump's return to power means the U.S. will likely oppose any multilateral solution to taxing the digital economy. Here, Law360 looks at important European tax developments to watch for this year.
January 01, 2025
The UK Corporate Crime Cases To Watch In 2025

Former trader Tom Hayes will get a final shot in 2025 at overturning his conviction for rigging Libor during the financial crisis, a Russian politician will face trial in the first criminal prosecution for breaching sanctions — and Dentons will be back in court over alleged anti-money laundering failures by the law firm.
January 01, 2025
Employment Law To Watch in 2025

All eyes will be on the government's Employment Rights Bill in 2025 — but the use of artificial intelligence in the workplace and an influential case that will examine when employees' beliefs can get legal protection are also worth watching out for.
January 01, 2025
Regulation To Prioritize UK Growth Over Risk-Aversion In 2025

Financial regulators have committed to giving priority to economic growth over risk-aversion in 2025 under new government priorities, a rebalancing that could create a conflict of interest with a recent focus on protecting consumers.
December 20, 2024
Many Firms Lack AI In Risk Operations, Study Finds

A new study highlighted by UK Finance on Friday has found that almost four in 10 financial services organizations have not implemented artificial intelligence in their risk operations, leaving them with a widening technology gap compared with those who are so prepared.
December 20, 2024
EU Lays Out Apple's Interoperability Requirements

The European Commission unveiled a host of proposed interoperability standards for Apple that would require the company to allow third-party devices to run background operations, automatically switch audio, send and receive files via AirDrop and much more with connected Apple products.
December 20, 2024
Gov't Reveals Multimillion-Pound Boost In Legal Aid Funding

The U.K. government has announced an additional £92 million ($115 million) in annual funding for legal aid, in a bid to address the ongoing crisis in the criminal justice system.
December 20, 2024
UK Litigation Roundup: Here's What You Missed In London

This past week in London has seen the University of Southampton sue a drone-maker over the rights to an uncrewed aircraft patent, Importers Service Corp. and its subsidiary ISC Europe take action against a former director who allegedly owes the company over £1.1 million ($1.4 million), and DAC Beachcroft face a fraud claim by a "prolific litigant."

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

Applying New FCA Guidance On Control Of Financial Firms

Buyers seeking to acquire or increase their stakes in U.K. financial services firms can streamline prudential review of their transactions by understanding the Financial Conduct Authority’s recently published guidance on updated change-in-control regulations, says Mark Chalmers at Davis Polk.
How Lawyers Can Work On Unmasking Beneficial Ownership

The Solicitors Regulation Authority's recent anti-money laundering report suggests that identifying ultimate beneficial owners in a transaction is one of the key day-to-day challenges that law firms face, and the solution lies in combining know-your-business processes with know-your-client verification, says Sam Ruback at Thirdfort.
Anticipating The UK's Top M&A Trends In 2025

Conversations with market participants are focusing on five key questions about 2025's transactional markets, ranging from issues of artificial intelligence, to the boom in takeovers and increased regulatory scrutiny, says Layla D’Monte at King & Spalding.
Takeaways On Freezing Injunctions After Dos Santos Ruling

The Court of Appeal's recent decision in dos Santos v. Unitel moved the needle in favor of applicants for freezing injunctions in two ways, say lawyers at Cooke Young.
What To Know About New Art Market Reporting Obligations

Recent U.K. sanctions reporting obligations on art market participants and high value dealers come into effect in May 2025, and businesses should review risk assessments and compliance controls to identify areas that may require strengthening, say lawyers at Steptoe.
Businesses Should Expect A Role In Tackling Fraud Next Year

If one word sums up a key trend in financial crime enforcement in 2024, it would be fraud, as enforcement agencies clamped down on consumer-focused crime — and businesses will need to be prepared to play a part in 2025 with the coming of the "failure to prevent fraud" offense, says Jessica Parker at Corker Binning.
What FCA's 2024 Changes Suggest For Enforcement In 2025

Though the Financial Conduct Authority is likely to enter 2025 hungry for enforcement wins after fielding intense criticism in 2024 over proposed policy amendments, firms can glean ideas for mitigating their risk from heightened scrutiny by studying the regulator's changing behavior from the year just past, says Imogen Makin at WilmerHale.
How The Wirecard Judge Addressed Unreliability Of Memory

In a case brought by the administrator of Wirecard against Greybull Capital, High Court Judge Sara Cockerill took a multipronged and thoughtful approach to a common problem with fraudulent misrepresentation claims — how to assess the evidence of what was said at a meeting where recollections differ and where contemporaneous documentation is limited, says Andrew Head at Forsters.
Practical Considerations For Private Fund Side Letters

Side letters are a common way of formalizing negotiated arrangements between a private fund and a particular investor — and as the number and length of side letters per fundraise steadily climb, managers must consider the material legal risks carefully, say lawyers at Dechert.
Planning For UK And EU Crypto-Asset Regulations In 2025

Fims should expect to devote the rest of 2024 and much of 2025 to fine-tuning their compliance frameworks to align with European Union crypto-asset regulations taking effect soon and U.K. regulators' plans for updating their own crypto-asset regime in the coming year, says Steven Lightstone at Morgan Lewis.
What To Know About Plans For A UK Green Taxonomy

Rachel Richardson at Macfarlanes discusses the purpose of HM Treasury’s recent consultation on a U.K. green taxonomy, explains why the tool — which would define what economic activities support climate objectives — is necessary, and considers drafting challenges the U.K. government may face.
Key Takeaways From EU's Coming Digital Act

The European Union's impending Digital Operational Resilience Act will necessitate closer collaboration on resilience, risk management and compliance, and crucial challenges include ensuring IT third-party service providers meet the requirements on or before January 2025, says Susie MacKenzie at Coralytics.
Takeaways From EU's Draft AI Code Of Practice

The European Union AI Office’s recently published first draft of the General-Purpose AI Code of Practice sheds some welcome light on which Artificial Intelligence Act compliance issues the office finds particularly knotty and, importantly, acknowledges where further guidance will be necessary, say lawyers at Akin.
The Rising Tide Of EU Antitrust Enforcement In Pharma

The European Commission’s recent record-breaking €463 million fine of Teva for abusing its dominant position confirms that European Union competition law enforcement in the pharmaceutical sector remains a priority, with infringements drawing serious financial exposure, say lawyers at Cooley.
Looking Back On 2024's Competition Law Issues For GenAI

With inherent uncertainties in generative artificial intelligence raising antitrust issues that attract competition authorities' attention, the 2024 uptick in transaction reviews demonstrates that regulators are vigilant about the possibility that markets may tip in favor of large existing players, say lawyers at McDermott.