Corporate Crime & Compliance UK

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Forced Labor Ruling To Spur NCA Scrutiny On Supply Chains

An English appellate court's landmark findings that the National Crime Agency misunderstood the U.K.'s anti-money laundering powers could cast greater scrutiny on the extent of illicit goods flowing through companies' supply chains, lawyers say.
July 09, 2024
UK's Non-Dom Taxpayer Count Increased 7%

A growing number of taxpayers in the United Kingdom claimed last year that their permanent home is outside the country, qualifying them for a non-domiciled tax exemption in the crosshairs of lawmakers, HM Revenue & Customs said Tuesday.
July 09, 2024
Global Standard Setter Guides Firms On Third-Party Risk

A global banking standard setter on Tuesday proposed new principles to guide banks and regulators on how to manage and supervise risks from services increasingly outsourced to external organizations due to technology growth.
July 09, 2024
Lawyer Accused Of Making False Mishcon Claims On Iran TV

The solicitors' watchdog told a disciplinary tribunal on Tuesday that a high-profile criminal defense lawyer recklessly made false statements about Mishcon de Reya LLP while appearing on an antisemitic show on an Iranian state-owned media channel.
July 09, 2024
MHA MacIntyre Hudson, 2 Ex-Staff Fined For Audit Failures

Britain's accounting watchdog on Tuesday said it had fined MHA MacIntyre Hudson LLP and two of its former employees for "numerous breaches" in the audits of a subsidiary of commodities business Monaco Resources Group.
July 09, 2024
Malaysian Investor Fights To Block €36M Claim At Top Court

A Malaysian businessman urged the U.K.'s top court on Tuesday to rule that a creditor should be blocked from bringing a €36 million ($39 million) claim against him because it already won a declaration in an earlier action pursuing the debts.
July 09, 2024
FCA To Require Criminal Record Checks On New Firm Owners

The Financial Conduct Authority has proposed to require owners and controllers of financial firms applying for authorization to obtain criminal background checks.
July 09, 2024
Sports Broadcaster Sued For Fraud In Failed Streaming Deal

Liquidators of a licensing company have sued a broadcasting chief after their autosport streaming deal turned sour, telling a court he lied about his ability to sell streaming subscriptions in U.S. prisons to entice the company to hand over the licensing rights.
July 09, 2024
Thomas Cook Creditors To Get Back £280M After Asset Sale

Creditors of Thomas Cook will receive a total of £280 million ($358 million) before the end of September after the senior civil servant overseeing the liquidation sold all available assets owned by the collapsed travel giant, according to the Insolvency Service.
July 08, 2024
FX Fund Says Investments Wiped Out By Legit Trading Losses

An investment fund that lost a client's money trading on the foreign exchange market has denied running a scam, claiming it owes the investor nothing because the losses were part of normal day-to-day trading.
July 08, 2024
Trader Denies Knowingly Making False Cum-Ex Trades

A British trader who has been convicted of defrauding Denmark in a sham tax reclaim scheme on Monday testified before a London court that he did not knowingly make false trades in order to make fraudulent tax refund applications, in a landmark £1.4 billion ($1.8 billion) trial.
July 08, 2024
Audit Watchdog Creates New Monitoring, Digital Functions

Britain's accounting watchdog said Monday it will create two new market functions to support enforcement and supervision as well as digital reporting, driving U.K. growth as part of its response to earlier government-led criticisms.
July 08, 2024
SRA Fines London Firm Over Anti-Money Laundering Failings

The English solicitors' regulator has hit a London law firm with a fine after investigators discovered a series of failures to comply with anti-money laundering regulations.
July 08, 2024
Hermer Poised To Return Independence To AG Role

The appointment of Richard Hermer KC as attorney general in the new Labour government will restore independence to a position that had become increasingly politicized over recent years, top British lawyers say.
July 05, 2024
Truckmakers Can Use Pass-On Defense In Price-Fixing Case

European truck manufacturers can argue that local U.K. authorities suing them over a price-fixing cartel passed the inflated costs allegedly paid for vehicles on to residents through tax and service charges, a tribunal ruled Thursday.
July 05, 2024
Legal Teams' Costs Slashed By £253M In UK Dieselgate Case

Legal teams involved in unprecedented U.K "Dieselgate" vehicle emissions tests litigation had more than £250 million ($320 million) of their budgets slashed on Friday after a High Court judge ruled that the estimated costs were "out of all proportion".
July 05, 2024
EU Watchdog Sets Out Sustainability Reporting Expectations

The European Union's financial markets regulator on Friday set out its expectations on new sustainability reporting standards for large companies with shares listed on stock exchanges and their regulators.
July 05, 2024
Bitcoin Fraudster Gets £1.5M Of Assets Frozen

A London court on Friday froze assets worth over £1.5 million ($1.9 million) belonging to Craig Wright, the man who falsely claimed to be the inventor of bitcoin, to cover the costs of a cryptocurrency podcaster who had to defend against Wright's defamation allegation.
July 05, 2024
UK Litigation Roundup: Here's What You Missed In London

This past week in London has seen collapsed sports television company Arena Television hit Bank of Scotland and Lloyds Bank with a claim, James Vorley, the Deutsche Bank metals trader convicted of fraud, sue his former employer, and journalist John Ware file a defamation claim against Pink Floyd band member Roger Waters and Al Jazeera Media Network. Here, Law360 looks at these and other new claims in the U.K.
July 05, 2024
Barrister Struck Off After Buying Drugs From Clients

A tribunal has disbarred a barrister who spent 14 months in prison after he was convicted of buying crystal meth from his drug dealer clients.
July 05, 2024
Matrix KC Richard Hermer Tapped For Attorney General

Matrix Chambers' human rights barrister Richard Hermer KC will serve as the U.K.'s attorney general in a surprise appointment from newly-elected Prime Minister Keir Starmer late Friday.
July 05, 2024
Liz Kendall Tapped To Head Labour's DWP Amid Reform Talk

The new Labour government named Liz Kendall as Secretary of State for Work and Pensions on Friday as speculation grew about looming reforms to the U.K. benefits system.
July 05, 2024
Shabana Mahmood Named Labour's New Justice Secretary

Prime Minister Keir Starmer named former barrister Shabana Mahmood as the Labour government's new justice secretary on Friday following a sweeping victory in the U.K. general election.
July 05, 2024
Nordea Laundered $4B For Russians, Denmark Police Say

Police in Denmark charged Nordic bank Nordea on Friday with allegedly laundering $3.8 billion for Russian customers, in what could be the biggest violation of the country's safeguards against dirty money.
July 05, 2024
Starmer Starts Work As Cabinet Appointments Expected

Keir Starmer, the newly elected prime minister, promised change that focuses on the economy and wealth creation as he prepared on Friday to begin appointing cabinet ministers to form the Labour Party's first government since 2010.
July 05, 2024
Ex-Bird & Bird Partner Can't Ax Sexual Misconduct Case

A former Bird & Bird LLP partner lost his fight at a tribunal on Friday to strike out a sexual misconduct case over allegations he harassed two junior female colleagues.

Editor's Picks

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.
Starmer Could Crack Judicial Crisis, Former CPS Chiefs Say

Keir Starmer's lead in the polls as the general election in July approaches has sparked hopes among criminal justice advocates that the Labour leader — a former top prosecutor — will implement reforms as prime minister.
Pillsbury's New UK White Collar Chief Eyes Success In London

Former Serious Fraud Office "powerhouse" Audrey Koh is in the building, and Pillsbury Winthrop Shaw Pittman says it now has the tools to launch its white-collar and corporate investigations practice in London. Here, Koh and managing partner Matthew Oresman survey the legal landscape.

Expert Analysis

Examining The EU Sanctions Directive Approach To Breaches

In criminalizing sanctions violations and harmonizing the rules on breaches, a new European Union directive will bring significant change and likely increase enforcement risks across the EU, say lawyers at Hogan Lovells.
What New UK Labour Gov't Is Planning For Financial Services

Following the Labour Party’s U.K. election win on July 4, the new government has already announced its key missions for economic growth, green investment and tax reform, so affected Financial Conduct Authority-regulated entities should be prepared for change and on the lookout for details, says Rachael Healey at RPC.
Companies Trading In The EU Should Heed Mondelēz Ruling

The European Commission’s recent €337.5 million fine of Mondelēz is the latest decision targeting restrictions on EU cross-border trade, and serves as a warning to companies active in the region to check their contracts and practices for illegal restraints, and to perform audits to ensure compliance, says Matthew Hall at McGuireWoods.
Why Reperforming Loan Securitization In UK And EU May Rise

The recently published new U.K. securitization rules will largely bring the U.K.’s nonperforming loan regime in line with the European Union, and together with the success of EU and U.K. banks in reducing loan ratios, reperforming securitizations may feature more prominently in relevant markets going forward, say lawyers at Morgan Lewis.
How Extension Of EU License Exemption Affects Subsidiaries

Since many European Union entities with a presence in Russia will soon need to obtain a license to continue providing certain services and software to Russian subsidiaries, organizations and legal professionals should prepare in advance and assess their companies' supply chain compliance with EU sanctions, say lawyers at McDermott.
What Legal Cannabis In Germany Means For Employers

Since April 1, the consumption and limited possession of cannabis has been permitted in Germany, so employers should take a few steps to maintain safe and productive workplaces while respecting the new legal landscape, says Sven Lombard at Simmons & Simmons.
What French Watchdog Ruling Means For M&A Landscape

Although ultimately dismissed due to lack of evidence, the French competition authority’s recent post-closing review of several nonreportable mergers is a landmark case that highlights the increased complexity of such transactions, and is further testament to the European competition authorities’ willingness to expand their toolkit to address below-threshold M&As, say lawyers at Cleary.
New Directors' Code Of Conduct May Serve As Useful Guide

Although the Institute of Directors’ current proposal for a voluntary code of conduct is strongly supported by its members, it must be balanced against the statutory requirement for directors to promote their company’s success, and the risk of claims by shareholders if their decisions are influenced by wider social considerations, says Matthew Watson at RPC.
Comparing EU, Southeast Asia Approaches To AI Regulation

Although Southeast Asian countries often adopt statutory frameworks similar to those in the European Union, the region’s more business-friendly approach to artificial intelligence regulation may be a setback to the EU’s push for coordination with its AI Act and a barrier to establishing a global standard, say Anne-Gabrielle Haie at Steptoe and Nop Chitranukroh at Tilleke & Gibbins.
Exploring The EU's Draft Standards On Crypto Authorization

The European Securities and Markets Authority’s recently published draft standards aim to promote fair competition and a safer environment for crypto providers and investors, detailing precisely the information to be provided to national authorities in charge of screening the acquisitions of a qualifying holding, says Mathieu de Korvin at Norton Rose.
Assessing Exposure Under UK Foreign Influence Scheme

While the proposed Foreign Influence Registration Scheme, designed to ensure transparency around foreign state-directed activities, may be delayed by the snap general election, organizations should prepare for compliance, including addressing concerns about the extent of unintended consequences arising from the scheme's scope, say Gavin Costelloe and Gillian Sproul at Greenberg Traurig.
How FCA Guidance Aligns With Global Cyberattack Measures

The U.K. Financial Conduct Authority’s recent guidance on preparing for cyberattacks aligns with the global move by financial regulators to focus on operational resilience, highlighting the importance of proactive strategies and robust resilience frameworks to mitigate disruptions, while observing a disappointing level of engagement by the industry, say Alix Prentice and Grace Ncube at Cadwalader.
Contractual Drafting Takeaways From Force Majeure Ruling

Lawyers at Cleary discuss the U.K. Supreme Court's recent judgment RTI v. MUR Shipping and its important implications, including how the court approached the apparent tension between certainty and commercial pragmatism, and considerations for the drafting of force majeure clauses going forward.
Takeaways From Regulators' £61.6M Citigroup Trading Fine

Following the Financial Conduct Authority and Prudential Regulation Authority’s recent significant fining of Citigroup for its catastrophic trading error, and with more enforcement likely, institutions should update their controls and ensure system warnings do not become routine and therefore disregarded, says Abdulali Jiwaji at Signature Litigation.
Factors For London Cos. To Consider If Adding US Listings

Recent reports of a continuing valuation gap between London and New York have resulted in some London-listed companies considering U.S. listings to gain an increased investor base, but with various obligations and implications involved in such a move, organizations should consider whether there is a real benefit from trading there, say lawyers at Winston & Strawn.