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 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."
December 20, 2024
Barrister Loses Appeal Over 6-Month Suspension

A London judge rejected a bid Friday by a barrister to overturn his six-month suspension for failing to comply with a court order to pay £64,000 ($80,593), ruling that the sanction was "neither wrong nor clearly inappropriate."
December 20, 2024
Pension Scams Body Held Back By Lack Of Industry Funding

An influential campaign group on pension scams said Friday that it will not be able to play a bigger role in raising awareness without funding from the retirement sector.
December 20, 2024
BT Delivers Warning Shot To Standalone UK Class Actions

Success for BT in the first-ever collective action to reach judgment in the U.K. could dampen the spirits of lawyers and litigation-funders backing more risky standalone claims that do not draw on pre-existing enforcement decisions to establish liability.
December 20, 2024
The Top FCA Enforcement Cases Of 2024

The blockbuster fines imposed by the Financial Conduct Authority on challenger banks Starling and Metro for anti-money laundering failures, its notable penalties against Barclays and its conviction of a former Goldman Sachs banker for insider dealing are just a few of the key cases from 2024.
December 20, 2024
The Biggest UK Commercial Litigation Cases Of 2024

The High Court and Court of Appeal resolved some landmark legal disputes in 2024 — the justices liberated the open-source cryptocurrency community from spats over intellectual property protection and determined liability for the high-profile collapse of London Capital & Finance.
December 20, 2024
Osborne Clarke Pro Fined £50K Over Zahawi Libel Letter

A tribunal fined an Osborne Clarke LLP partner who represented Nadhim Zahawi £50,000 ($62,700) on Friday for trying to stop a blogger revealing that the former chancellor was contemplating libel action over allegations of dishonesty in his tax affairs.
December 20, 2024
£3.5B 'Dartford Disneyland' Park Co. Must Close, Court Rules

A company that had wanted to build a £3.5 billion ($4.4 billion) "Disneyland-style" theme park must be wound up for "serious and irremediable" breaches of its agreement to pay creditors, which include Paramount, a London court has ruled.
December 20, 2024
Financial Adviser Colbourne In Default After FCA Restrictions

The Financial Conduct Authority has said that Colbourne & Co., an independent financial adviser that it has prevented from doing regulated business, is in default and that clients can claim compensation.
December 20, 2024
Ex-Axiom Ince Execs Hit With Fraud Charges Over Collapse

The Serious Fraud Office charged five former Axiom Ince leaders with fraud on Friday over the collapse of the law firm with a £65 million ($81 million) hole in its client accounts.
December 19, 2024
Craig Wright Gets Suspended Sentence Over Bitcoin Claim

Australian computer scientist Craig Wright was given a suspended one-year prison sentence on Thursday after a London judge said he was in contempt of court for asserting he had invented bitcoin in an approximately £900 billion ($1.1 trillion) claim.
December 19, 2024
CMA Issues Guidance For New Digital Competition Rules

Britain's Competition and Markets Authority released guidance Thursday laying out how the agency intends to use its new powers to impose rules and obligations on large technology companies, ahead of the regime's launch next year.
December 19, 2024
Lloyd's Syndicate Says £1M Property Claim Exaggerated

A Lloyd's syndicate has denied owing £1 million ($1.25 million) to cover costs of subsidence damage to a property in southern England, arguing the owner fraudulently exaggerated the claim and submitted false documents.
December 19, 2024
Denmark Says $500M Recovered In Dividend Tax Fraud Suits

Denmark's tax administration has recovered a total of 3.6 billion Danish kroner ($500 million) in money lost to suspected dividend tax refund fraud after entering settlements of civil cases in several countries in 2024, Denmark's tax minister announced.
December 19, 2024
FCA Apologizes To Victims Of £15M Peer-To-Peer Fraud

The financial regulator of the U.K. on Thursday issued an apology to the victims of peer-to-peer lender Collateral (UK) Ltd., which defrauded investors of £15 million ($18.8 million) by falsely claiming the business was authorized.
December 19, 2024
Motor Finance Firms Get 1 Year To Address Fee Complaints

Britain's financial watchdog said Thursday that it has extended the time motor finance firms have to respond to consumer complaints about commission arrangements by a year, after mulling over the extension for a month.
December 19, 2024
Thames Water Fined £18M For Breaking Dividend Rule

The U.K. water regulator said Thursday that it plans to fine Thames Water £18.2 million ($22.7 million) for paying "unjustified" dividends worth £195.8 million that broke shareholder payment rules, the latest setback for the troubled utility.
December 19, 2024
Retailers Lose Bid For Higher Damages Bill In Swipe Fees Trial

Retailers taking legal action against Mastercard Inc. and Visa lost their bid on Thursday to increase their damages bill from alleged unlawful overcharging by the card companies.
December 19, 2024
A Look Back At The Top UK Corporate Crime Cases Of 2024

Julian Assange's blockbuster plea deal, which allowed the Wikileaks founder to walk free from prison, the first fine imposed by Britain's sanctions' enforcer over Russia and a landmark ruling on criminal liability in supply chains are just a few of the key cases from 2024.
December 19, 2024
Osborne Clarke Pro's Email To Zahawi Critic Was 'Negotiation'

A partner with Osborne Clarke LLP who represented Nadhim Zahawi "believed he was acting properly" when he sent an allegedly threatening email to a blogger scrutinizing the former Conservative chancellor's tax affairs, his counsel told a tribunal on Thursday.
December 19, 2024
The Biggest UK Supreme Court Decisions Of 2024

The U.K. Supreme Court in 2024 has looked into the enforcement of arbitration agreements, put an end to brand owners collecting broad trademark monopolies, galvanized climate activism and stressed the importance of solicitor-client costs agreements.
December 19, 2024
UK Private Stock Market May Fail To Attract Investors, Firms

A world-first regulated market that the U.K. government has proposed for private companies to trade shares might fail to offer enough of an incentive to attract firms and investors.

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

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.
UK Bill Aims To Make Better Use Of Data Across Economy

The new Data Bill’s practical improvements to data schemes and certification systems will be welcomed by online service providers, but organizations need to consider the conditions and whether compliance will entail technical operational changes, say lawyers at Osborne Clarke.
The EU AI Act's Impact On Global Financial Regulation

The European Union’s new Artificial Intelligence Act, representing lawmakers’ first comprehensive attempt to regulate AI and giving special attention to the financial services sector, hopes to influence global legal and regulatory frameworks to maintain access to the EU market, say lawyers at Goodwin.
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.