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.
January 09, 2025
SFO To Claw Back £1M From Solicitor Convicted Of Fraud

A lawyer who was imprisoned for 14 years for siphoning off investors' money through a fraudulent offshore "get-rich-quick" legal aid scheme will repay victims more than £1 million ($1.23 million), the Serious Fraud Office said Thursday.
January 09, 2025
BoE Sets Out Tough Priorities On Cyberthreats, Climate

The Prudential Regulation Authority wrote to chief executives in the insurance sector on Thursday, setting out tough regulatory priorities for 2025, as it seeks better resistance to cyberthreats and greater management of climate-change risk.
January 09, 2025
Admiral Casino To Pay £1M For AML Regulatory Failures

Online gambling firm Admiral Casino has been hit with a £1 million ($1.2 million) penalty for failing to set up anti-money laundering protection and failures in establishing spending limits and financial checks for vulnerable customers, the Gambling Commission said Thursday.
January 08, 2025
Lawyer Accused Of AML Failings And Accounts Rules Breach

England's solicitors watchdog told a tribunal Wednesday that a lawyer lied about anti-money laundering failings and used his firm's client account as a banking facility to hold more than £2 million ($2.7 million) for a client.
January 08, 2025
Prosecutors Say Keltbray Managers Took £600K In Kickbacks

A worker agency boss gave kickbacks to construction site managers in various projects, including the Battersea Power Station redevelopment, in exchange for them sub-contracting his staff, prosecutors told the opening of a £600,000 ($742,000) bribery trial Wednesday.
January 08, 2025
EU Commission To Pay €400 For Sending IP Address To Meta

A European Union court ordered the bloc's commission on Wednesday to pay a German citizen €400 ($412) in compensation for operating a website that disclosed his IP address to Meta in breach of its own data regulations — a first for the executive branch.
January 08, 2025
JPMorgan Denies Unfairly Sacking Trader In Fraud Crackdown

Banking giant JPMorgan defended itself on Wednesday against unfair dismissal allegations from an ex-trader, denying claims that it fired the employee without a proper investigation over suspicions of fraud because it was trying to appease regulators.
January 08, 2025
Met Police Investigated Over Handling Of Al-Fayed Complaints

The national police watchdog said on Wednesday that it is investigating the Metropolitan Police's handling of sexual misconduct allegations against Mohamed al-Fayed, the former owner of Harrods department store and Fulham Football Club who died in 2023.
January 08, 2025
UK Watchdog Bans Advert Featuring Burning Dollars

The Advertising Standards Authority said Wednesday that it has banned adverts by online investment platform Wahed Invest Ltd. showing U.S. dollar and euro banknotes on fire because they are likely to cause serious offense.
January 07, 2025
Shein GC Avoids Labor Abuse Claims At UK Inquiry

Fashion retailer Shein was excoriated by MPs after it offered few answers to accusations of labor abuses in its supply chains at a parliamentary inquiry on Tuesday.
January 07, 2025
Latham Loses Antitrust Pro To Sidley In Latest Exit

Sidley Austin LLP said Tuesday that it has hired an antitrust partner from Latham & Watkins LLP to its Brussels office — the latest lawyer to jump ship from Latham to its U.S. rival.
January 07, 2025
'I Was Crap At My Job,' Trader Says In £200M Dirty Money Trial

The former director of a gold trading business has denied trying to cover up a £200 million ($250 million) money laundering scheme, telling a criminal trial on Tuesday that he was simply bad at his job.
January 07, 2025
Solicitor Told 'Client' To Make False Asylum Claim, SRA Says

A lawyer advised someone he believed to be a client to provide a fake story to support a British asylum claim, the Solicitors Regulation Authority alleged at a disciplinary tribunal in London on Tuesday.
January 07, 2025
Law Firm Fined £28K For Not Complying With AML Laws

An English law firm has been fined for failing to implement adequate measures to protect it from being exposed to money laundering and terrorist financing, the Solicitors Regulation Authority has said.
January 07, 2025
Finance Sector Seeks To Limit EU Technology Rules

Finance trade bodies in Europe have urged lawmakers to exclude digital-based financial services from a new European Union regime that will strengthen cyber-resilience in finance when it starts in January because it would overlap with existing rules.
January 07, 2025
Hundreds Sue Payroll Biz Zellis Over Software Cyberattack

A group of more than 450 employees of organizations including the BBC, British Airways and high street pharmacist Boots have sued Zellis, a payroll and human resources provider, alleging that it failed to prevent a cyberattack.
January 07, 2025
Hundreds Of McDonald's Crew Join Group Harassment Claim

More than 700 young workers at McDonald's have joined a group harassment claim against the fast food giant as the company's chief executive told MPs on Tuesday that the allegations are "isolated incidents."
January 06, 2025
Odey Sues FT For £79M Libel After Sexual Misconduct Claims

Hedge fund manager Crispin Odey has sued the Financial Times for £79 million ($99 million), claiming the newspaper published libelous articles containing a string of allegations that he sexually assaulted or harassed multiple women.
January 06, 2025
Pallas Partners Promotes 2 Lawyers In London To Partnership

Pallas Partners LLP said Monday it has promoted two lawyers in its office in London to its partnership, adding to the ranks of the senior lawyers who will take the business forward in the coming years.
January 06, 2025
Ex-Entain CEO Sues Gambling Watchdog Over Bribery Reveal

Two former top executives at the predecessor of betting giant Entain have sued the Gambling Commission over claims that the regulator misused their private information by disclosing an investigation into potential bribery.
January 06, 2025
HMRC Faces £20M Libel Case Over Asahi Cargo Fraud Report

A British logistics company has sued HM Revenue and Customs for as much as £20 million ($25 million), alleging that the tax authority damaged its business by falsely accusing it of dodging tax on shipments of Asahi beer.
January 06, 2025
Most Fraud Starts On Social Media And Tech, Barclays Finds

Most frauds start on social media and technology platforms, with investment scams accounting for a third of the total, according to new findings by Barclays Bank.
January 06, 2025
Rail Operator Must Pay £54K To Penalized Whistleblower

A tribunal has ordered Great Western Railway to pay a former employee £53,800 ($67,400) after the rail operator recently failed to overturn a ruling that it victimized the worker for his whistleblowing activities.
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.

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

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.
EU's AI Act May Lead To More M&A Arbitration

With the EU's Artificial Intelligence Act and its stiff penalties beginning to take effect, companies acquiring AI targets should pay close attention to the provisions in the dispute resolution clauses of their deal documents, say Nelson Goh at Pallas Partners and Benjamin Qiu at EKLJ.
A Look At PCAOB's Record-Breaking Enforcement In 2024

The Public Company Accounting Oversight Board in 2024 brought more enforcement actions against auditors and imposed increasingly higher monetary penalties, showing that it was not afraid to exercise its power to fine and reprimand firms, a trend that will likely continue in 2025, say attorneys at Briglia Hundley.
Key Points From EU's Latest FDI Screening Regulation Review

The European Commission’s recent assessment of the Foreign Direct Investment Screening Regulation indicates that with strong control here to stay, precautionary filings are likely to remain necessary, and member states should prepare for greater rule alignment to reduce inefficiencies caused by a current lack of synchronization, say lawyers at Linklaters.
UK Businesses Need To Plan For Accessibility Act Compliance

With the European Accessibility Act’s compliance deadline approaching this June, U.K. businesses trading in the European Union need to think broadly in addressing its requirements to ensure equality of access to the digital world, says Louisa Chambers at Travers Smith.
Interpreting Newly Released Consumer Fraud Complaints Data

The Financial Ombudsman Service’s latest complaint data focuses on scams and customer service, and demonstrates that as fraud is becoming rapidly more complex, financial regulators need to acknowledge that technology is here to stay and work together with firms to protect consumers, say lawyers at RPC.
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.