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 05, 2024
CAT OKs 2nd Settlement In Car Delivery Class Action

Britain's antitrust tribunal approved settlements Wednesday worth £37.3 million ($47.3 million) from two defendants in a car delivery class after determining that the uncertainty around the outcome of an upcoming trial justified the sign-off.
December 05, 2024
HMRC Wins Freezing Order Over Alleged £171M Tax Fraud

A court imposed a freezing order against three British businesses on Thursday after the U.K. tax authority accused them of orchestrating a £171 million ($218 million) National Insurance fraud.
December 05, 2024
Gold Trader Denies Knowing Of £200M Laundering Scheme

The former director of a gold trading business has denied any knowledge of a £200 million ($255 million) money laundering scheme as he testified at a criminal trial on Thursday that the business needed informal arrangements to get access to ready cash.
December 05, 2024
French Antitrust Regulator Fines Airlines €14.6M For Collusion

France's competition authority has hit two airlines with fines totaling €14.6 million ($15.3 million) after it concluded that they had colluded to inflate ticket prices while reducing services for "captive customers" on French Caribbean islands.
December 05, 2024
Solaris Says Binance Can't Use AML Gaps To Exit €144M Deal

Online banking group Solaris has rejected Binance's defense to its €144 million ($152 million) claim over a collapsed cryptocurrency debit card scheme, arguing that any alleged breaches of anti-money laundering rules did not entitle the global exchange operator to end the deal.
December 04, 2024
Russian Boat Leaser Sues Charter Guarantors For $60M

A Russian state-owned boat leasing company has sued four Cypriot businesses for more than $60 million, claiming they promised to cover the cost of charters that were wrongfully terminated in the wake of sanctions on Russian companies.
December 04, 2024
Pols Ask Why EU Blacklist Leaves Out 'Notorious Tax Havens'

Members of the European Parliament questioned the chair of the Code of Conduct Group on business taxation about its criteria for adding countries to the European Union's blacklist of uncooperative tax jurisdictions.
December 04, 2024
Mastercard Settlement Spat Will Test Class Action Regime

The U.K.'s collective action regime will face a new test after the financial backer of a claim against Mastercard over credit card fees criticized a proposed £200 million ($254 million) settlement that would end nine years of hard-fought litigation.
December 04, 2024
PrivatBank Ex-Owner Can't Ease Freeze To Sell Stranded Jets

A London court on Wednesday refused to allow an ex-owner of PrivatBank to sell aircraft stranded in Ukraine after Russia's invasion, concluding the sale may risk breaching a freezing order in a $4.2 billion fraud case.
December 04, 2024
Siemens Unit Beats Whistleblowing Claim Over Military Data

A Siemens-owned company is off the hook for firing a design engineer after an employment tribunal ruled that his contract wasn't renewed because of performance issues rather than his concerns over the transfer of military data.
December 04, 2024
UK Busts Multibillion-Dollar Russian Money Laundering Ring

The National Crime Agency said Wednesday that it has dismantled two Russian money laundering networks tied to drugs, ransomware and espionage in an international operation with the United States, France and Ireland.
December 04, 2024
JPMorgan Accused Of Unfair Firing Over Spoofing Allegations

A former precious metals trader at JPMorgan has accused his former employer of unfair dismissal, as his lawyer argued on Wednesday that the bank dismissed him to appear tough on fraud after a criminal scandal in 2022.
December 03, 2024
Surgeon Wins £529K For Race Bias, Whistleblowing Breaches

An Iraqi surgeon has won £529,000 ($670,000) after convincing a tribunal that a National Health Service trust racially discriminated against him and penalized him for blowing the whistle on alleged problems with the treatment of dozens of patients.
December 03, 2024
Austrian Banker Says Brazilian Tax Fraud Allegations 'Risible'

An Austrian banker sought Tuesday to overturn a London court decision allowing his extradition to the U.S. on money laundering charges over his alleged role in a massive corruption scandal involving Brazilian construction conglomerate Odebrecht SA, calling the U.S. government's arguments "risible."
December 03, 2024
Consumers Settle £10B Mastercard Swipe Fees Class Action

Representatives of more than 45 million U.K. consumers confirmed Tuesday that they had settled a multibillion-pound claim against Mastercard over its fees, which is likely to end one of the first cases to test the boundaries of Britain's collective proceedings regime.
December 03, 2024
Charity's Ex-Partner Gets 10 Years For £1.5M Gift Aid Fraud

A former finance business partner at national charity Save The Children UK has been jailed for 10 years for stealing £1.5 million ($1.9 million) through fraudulent Gift Aid claims, HM Revenue & Customs announced Tuesday.
December 03, 2024
Chancellor Appoints COVID Czar To Probe 'Carnival Of Fraud'

The chancellor said Tuesday that Tom Hayhoe, a health service and regulatory veteran, has been appointed as the COVID-19 corruption commissioner to claw back money wasted in pandemic-era fraud with a potential cost of up to £7.3 billion ($9.2 billion).
December 03, 2024
Microsoft Faces £1B Class Action Over Software Overcharging

Microsoft was hit on Tuesday with a class action of more than £1 billion ($1.3 billion) brought on behalf of thousands of U.K. businesses alleging that it overcharged for licensing fees to its Windows Server, a software used in cloud computing.
December 03, 2024
Motorists Reach £37M Settlement In Shipping Cartel Case

Millions of motorists who allegedly overpaid for their cars have reached a £37.3 million ($47.3 million) settlement against two vehicle shipping companies in an opt-out class action before a trial in January, lawyers representing the group said Tuesday.
December 03, 2024
Severity Of Cyber Risk 'Widely Underestimated' In UK

Britain is facing a "widening gap" in its ability to fight cyberthreats and must improve its defenses to combat the increasing severity and scale of hostile threats, the head of the country's top cybersecurity agency said on Tuesday.
December 02, 2024
Skat Settles With Ex-Barclays Director In £1.4B Fraud Case

The Danish tax authority has settled its claim against a former Barclays Capital director and four companies that it sued alongside dozens of others over an alleged scheme to defraud it of £1.4 billion ($1.8 billion) in tax revenue.
December 02, 2024
Sports Direct's Ashley Says HMRC Bungled His Data Request

Sports Direct International PLC founder Michael Ashley argued in a London court Monday that the U.K.'s tax agency improperly handled his data request related to its probe into his 2012 sale of real estate assets, calling its alleged failings "significant, wide-spread and persistent."
December 02, 2024
EU Adopts Laws To Bolster Cybersecurity Across Sectors

The European Council announced Monday that it has adopted new laws to strengthen its cybersecurity measures by establishing an alert system across the bloc to better share information between the public and private sector.
December 02, 2024
Lewis Silkin To Probe Claims Against 'MasterChef' Co-Host

The production company behind "MasterChef" has appointed Lewis Silkin LLP to lead a probe into a series of harassment allegations against one of its presenters, Gregg Wallace.
December 02, 2024
Mogul Can't Duck £102M Debt Using Sham Settlement

Property mogul Andrew Ruhan colluded with a British businessman convicted for fraud to cook up sham litigation to escape a £102 million ($129 million) debt owed to the liquidators of three luxury hotels, a London judge has ruled.

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

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.
Update On Timings Key For Online Safety Act Compliance

The Office of Communications’ recent update on Online Safety Act deadlines is significant because applicability of the act has been contingent on this guidance, and with clarification of enforcement details, organizations can now prepare for their risk assessment, say lawyers at Bird & Bird.
What The Future Of AI In Financial Services Looks Like

Artificial intelligence is rapidly transforming the global financial services industry, with a hybrid model likely to evolve where AI handles routine tasks and humans focus on strategy and decision-making, so financial institutions should work with regulators to establish ethical standards and meet regulatory expectations without stifling innovation, say lawyers at Womble Bond.
FCA Survey Results Reveal Rise In Nonfinancial Misconduct

After a Financial Conduct Authority survey recently reported a significant rise in nonfinancial misconduct, there are a number of preventive steps firms should take to create a healthy workplace environment and mitigate the risk of increased regulatory scrutiny, say lawyers at WilmerHale.
Online Safety Act Heightens Duties Of Social Media Platforms

The Office of Communications’ latest update on how it is implementing the Online Safety Act is part of a wider evolving debate, but while social media platforms wait for the law to take full effect, they can focus on establishing clear online safety policies, training programs for staff and proactive engagement with regulators, says Dan Adams at Arbor Law.
Gov't Fraud Prevention Guide Proves To Be A Damp Squib

The Home Office’s recent guide to the Economic Crime Act’s failure to prevent fraud offense goes little further than offering broad suggestions, signaling the Serious Fraud Office’s encouragement of companies to self-police rather than an intention to pursue fraud allegations to trial, say lawyers at BCL Solicitors.
When Investigating An Adversary, Be Wary Of Forged Records

Warnings against the use of investigators who tout their ability to find an adversary’s private documents generally emphasize the risk of illegal activity and attorney discipline, but a string of recent cases shows an additional danger — investigators might be fabricating records altogether, says Brian Asher at Asher Research.
EU Enviro Directive Compliance Must Be A Priority For CEOs

The new European Union Environmental Crime Directive makes clear that criminal liability of a company for causing environmental damage does not preclude proceedings being brought against individuals who aid and abet, including CEOs, board members and other corporate leaders, say lawyers at Crowell & Moring.
New Offense Expands Liability For Corporate Enviro Fraud

The Economic Crime Act's new corporate fraud offense — for which the Home Office recently released guidance — underscores the U.K.'s commitment to hold companies accountable on environmental grounds, and in lowering the bar for establishing liability, offers claimants a wider set of tools to wield against multinational entities, say lawyers at Bracewell.
CMA Heat Maps Call Attention To Warning Letters

The Competition and Markets Authority's first heat maps illustrating the location of warning letters sent to businesses are intended to increase awareness of the letters, and provide new information that reflects distribution and density across the U.K., says Matthew Hall at McGuireWoods.
What UK Security Act Report Indicates For Future Gov't Policy

Following the recent publication of the National Security and Investment Act report on the scrutiny of proposed investments, it will be interesting to see how the act’s powers fit into a government policy that plans to cut regulatory obstacles, while maintaining a hard line on national security, say lawyers at Katten Muchin.
What UK Takeover Code's Narrowed Focus Will Mean For Cos.

In narrowing its scope of application, the U.K. Takeover Panel's forthcoming amended code will have practical implications for U.K.-registered companies and ultimately provide greater market clarity and certainty, say lawyers at Davis Polk.