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 10, 2025
Nottingham Forest Owner Can Continue Libel Claim

Nottingham Forest Football Club owner Evangelos Marinakis can continue his libel claim against the chair of Greek team Aris after a London court ruled Friday that the claim "seems well worth bringing."
January 10, 2025
Woman Who Laundered Bitcoin Fraud Proceeds Must Pay £1M

A British-Chinese woman convicted for laundering bitcoin converted from an alleged £5 billion ($6.1 billion) investment fraud must pay £1.3 million or face an additional seven years in prison, a London court judge ruled Friday.
January 10, 2025
UK Litigation Roundup: Here's What You Missed In London

This past week in London has seen legal services group RBG Holdings face a winding-up petition from founder Ian Rosenblatt amid soured talks about the group's leadership, J.P. Morgan file a fresh claim against WeRealize, retailer Asda face an intellectual property claim over a specific type of mandarin and financier Nathaniel Rothschild sue German entrepreneur Lars Windhorst and his investment vehicle Tennor International. Here, Law360 looks at these and other new claims in the U.K.
January 10, 2025
Lawyer Cleared Of Dishonesty Over AML Compliance Failings

A disciplinary tribunal on Friday cleared a lawyer of dishonesty over allegations that he misled an insurer and the English solicitors regulator about his lack of compliance with anti-money laundering regulations.
January 10, 2025
Apple Showdown Starts 1st Wave Of Big Tech Class Actions

Apple will become the first big technology company to go on trial under the U.K. collective action regime on Monday, facing a claim of abuse of dominance that could have significant consequences for several other class actions against tech giants including Google, Meta and Amazon.
January 10, 2025
Sports Betting Company Challenges CMA Order To Sell Biz

Sports betting company Spreadex has appealed against an order by the Competition and Markets Authority that it must sell a business it acquired in 2023 over concerns that a combined entity would harm the market for licensed online sports spread-betting.
January 10, 2025
Broker Arian Hit With Fine For Cum-Ex Trade Failings

The finance watchdog said Friday that it has fined broker Arian Financial LLP £289,000 ($354,000) for having inadequate systems and controls against financial crime in a cum-ex dividend trading case.
January 10, 2025
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.
January 10, 2025
FCA Objects To Proposed Acquisition Of Payments Firm

The financial watchdog said Friday that it has issued an objection to a proposed acquisition of a small payments firm, saying the buyer had demonstrated "a serious lack of professional competence."
January 10, 2025
Investors Sue Ackland & Co. Over Negligent Property Advice

A Welsh law firm has been sued by a group of individuals over alleged breaches of duty in connection with their failed purchases of property in a development in England that collapsed before the promised residential apartments were built.
January 09, 2025
Ex-Yodel Director Denies Stripping Millions Off Courier

A former director of Yodel has denied stripping over £4 million ($4.9 million) of the delivery company's assets for his own pocket under the pretext of a merger, claiming he had no involvement in money sent to a company he founded.
January 09, 2025
UK Supermarkets Fear Higher Costs Amid Tax Changes

Supermarket companies Marks & Spencer and Tesco reported Thursday that they had high sales figures due to Christmas, but both retailers also said they expect to face higher tax costs in 2025 due to changes to National Insurance, a payroll tax used to fund social programs.
January 09, 2025
Tech Biz Says Barrister Failed To Flag Law Firm's Negligence

A tech company has accused a barrister of failing to spot his instructing law firm's alleged negligence, telling a London court that this armed the law firm with a limitation defense that cut the value of an eventual settlement.
January 09, 2025
Pair Face COVID Vaccination Fraud Charges In Court

Two men appeared in court Thursday on charges following a joint National Crime Agency and National Health Service England investigation into the creation and sale of fraudulent COVID-19 vaccination records during the height of the pandemic.
January 09, 2025
UK To Introduce Sanctions Law Targeting People-Smuggling

The U.K. government will create a new sanctions regime to target people-smuggling networks, clamping down on the finances of organized crime groups as it seeks to curb illegal migration, the foreign secretary said Thursday.
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 Pledges To Get Tough On Cyberthreat, Climate Change

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.

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.