Corporate Crime & Compliance UK

Entrance to the UK Supreme Court in London

UK Supreme Court Boosts Creditor Protection In Fraud Cases

Britain's highest court has handed administrators more power to pursue businesses that turn a blind eye to fraud, with a ruling on Wednesday that will bolster protection for creditors and could raise the stakes for companies flying too close to the wind, lawyers say.

Financial Analyst Working on Computer with Multi-Monitor Workstation

Draft UK Crypto-Regulations Facing Teething Troubles

The government's new crypto-assets regime will be unenforceable across borders and could deter fledgling companies from working in the country, meaning that the financial watchdog will face early challenges to its attempts to protect British consumers in a volatile global marketplace.

Campaigners for For Women Scotland outside the Supreme Court in London

5 More Things For Employers To Consider After Sex Ruling

The ruling in April by the U.K. Supreme Court on the legal definition of a woman will compel employers to rethink much more than who uses what toilet, lawyers say.

FCA Set To Get Enforcement Boost From New Fraud Offense

The new "failure to prevent" fraud offense that comes into force in September will indirectly boost the Financial Conduct Authority's opportunities for enforcement against corporate senior managers, countering its recent retreat from plans to "name and shame" companies it is investigating, lawyers say.

May 19, 2025
Takeout Owner Gets Suspended Sentence For VAT Tax Dodge

The former owner of a Chinese takeout restaurant in the U.K. received a one-year prison sentence, which was suspended, for fraudulently disposing property after filing for bankruptcy instead of paying his bill of over £43,000 ($57,000) in value-added tax, the U.K.'s Insolvency Service announced Monday.
May 19, 2025
Osborne Clarke Pro's Conduct Risked Public Trust, SDT Says

A disciplinary tribunal has ruled that an Osborne Clarke LLP partner committed the kind of misconduct that "would clearly undermine public trust" in lawyers by misusing legal language to try to shield an email sent on behalf of former Chancellor of the Exchequer Nadhim Zahawi from being published, explaining its decision to fine the solicitor over the incident.
May 19, 2025
The Times Sued For Naming Phone Co. Owner In Fraud Probe

The founder of an exclusive mobile phone provider has sued Times Media Ltd. for allegedly violating his privacy by publishing articles — sourced from covert recordings — identifying him as the subject of a now-closed criminal investigation into corruption in sport.
May 19, 2025
Aviva To Use AI Tool To Map Cyberthreat Behavior

Insurance giant Aviva PLC on Monday said it has begun using artificial intelligence tools to map the cyberthreats the companies in its portfolio are most exposed to.
May 19, 2025
Big Tech Is Major Obstacle To Stopping UK Financial Fraud

Anti-fraud campaigners are calling on the government to fine Big Tech companies such as Meta on repeated failures to prevent fraudulent financial advertising on their platforms with a tougher and wider regime than envisaged, with the consensus that social media is the biggest obstacle to combating investment scams.
May 19, 2025
EY Accused Of Flawed Audits At NMC Health's £2B Fraud Trial

The administrator of NMC Health accused EY on Monday of "fundamentally flawed" auditing that allowed a major fraud against its business by principal shareholders to go undetected for more than seven years, as a multibillion-pound trial kicked off.
May 19, 2025
Legal Aid Agency Cyberattack Shutters Online Portal

A cyberattack on the Legal Aid Agency has compromised such a large volume of the sensitive personal data of applicants that the government has pulled down the online portal used to pay service providers, the Ministry of Justice confirmed on Monday.
May 16, 2025
'Tuna Bond' Defendants Ordered To Pay $352M In Restitution

A Brooklyn federal judge ordered three former Credit Suisse bankers and the former finance minister of Mozambique to pay a combined $352 million in restitution Friday after they pled guilty or were convicted of scheming to defraud investors in a $2 billion state-backed development initiative involving tuna fishing.
May 16, 2025
Solicitor Struck Off For £1M Fraudulent Transfers

A former owner of a now-defunct law firm has been banned from working as a solicitor after he allowed the firm's client account to receive and transfer more than £1 million ($1.3 million) for illegal purposes long after the business had stopped trading.
May 16, 2025
Work Agency Loses VAT Deregistration Appeal Over Tax Fraud

An agency worker supply company has lost its latest bid to challenge a decision by the U.K. tax authority to cancel its VAT registration over its alleged links to a tax fraud scheme, as a London appeals court refused its bid on Friday.
May 16, 2025
Microsoft Offers To Sell Office Without Teams After EU Probe

The European Commission called for comments Friday on commitments given by Microsoft to address potential anticompetitive bundling of its Teams video call program and the Office365 and Microsoft 365 groups of products.
May 16, 2025
UK Litigation Roundup: Here's What You Missed In London

This past week in London has seen Linklaters and EY face negligence claims from a fintech investment firm, property developer Sir John Ritblat bring legal action against a Guernsey-registered company, and fresh equal pay litigation filed against Morrisons and Safeways. Here, Law360 looks at these and other new claims in the U.K.
May 16, 2025
Ex-BGC Tax Adviser Jailed For Breaching Asset Freeze Order

A former BGC Partners employee was sentenced to 16 months committal in prison Friday for contempt by a London judge Monday after admitting he breached restrictions the court imposed after he committed a £23.5 million ($31.1 million) fraud against a subsidiary.
May 16, 2025
Premier League Betting Sponsors Blocked After AML Failings

Betting websites that sponsor several top-flight English football clubs have been blocked in Britain after their license-holder surrendered its license to a gambling regulator over anti-money laundering failings, the watchdog said Friday.
May 16, 2025
Director Of UK Economic Crime Center Steps Down

One of the most senior officials responsible for mustering Britain's fight against economic crime has stepped back from his job after a three-year stint that saw major investigations of corrupt elites and a crackdown on fraud and money laundering.
May 15, 2025
CFPB Slashes Final Chopra-Era Fine From Over $2M To $45K

The Consumer Financial Protection Bureau on Thursday slashed an enforcement fine for Wise, a global money transfer fintech, by nearly 98%, shaving almost $2 million off a previous settlement for misleading customers about its fees and other costs.
May 15, 2025
HMRC Fights To Keep £261M In Overseas Dividends Tax Battle

The British High Court was wrong to find BAT Industries PLC could have discovered that its tax payments on foreign dividends were made by mistake, HM Revenue & Customs told an appeals court Thursday, urging it to overturn the ruling.
May 15, 2025
Diamond Tycoon Refused Bail In $2B Fraud Case

Jeweler Nirav Modi was refused bail in London on Thursday as he awaits extradition to India over his alleged involvement in a $2 billion bank fraud, after Modi argued that he will not flee the U.K. because he fears reprisal by the Indian government.
May 15, 2025
UK Shifts COVID Fraud Cases From Ineffective £38.5M Unit

The U.K. government announced Thursday that it is taking COVID-19 relief scheme fraud investigations away from a £38.5 million ($51 million) unit after discovering that the unit had only secured 14 convictions in around five years, passing cases to the Insolvency Service instead.
May 15, 2025
Ex-Solicitor Hit With 1st Individual Tax Avoidance Stop Notice

HM Revenue & Customs has ordered a struck-off solicitor to stop promoting two tax avoidance schemes, the first notice of its kind issued against an individual, the tax authority said Thursday.
May 15, 2025
BA Fined £3.2M For Ignoring Safety Risks At Heathrow

British Airways was fined £3.2 million ($4.25 million) on Thursday for breaching health and safety regulations after two workers fell off defective baggage equipment in separate "near-identical" incidents months apart.
May 15, 2025
TikTok Breached Online Publishing Rules, Finds EU Probe

TikTok is failing to fulfill its obligation to publish the collection of advertisements that it displays on its social media platform, according to European Commission preliminary findings revealed Thursday.
May 15, 2025
Gambling Regulator Hits Betting Website With £2M AML Fine

The Gambling Commission said Thursday that it has fined sports betting operator Spreadex Ltd. £2 million ($2.7 million) after it found a series of anti-money laundering and social responsibility regulations failings.
May 15, 2025
NATO Contract Corruption Probe Widens After Belgian Arrests

European Union prosecutors said Thursday that they have widened their investigation into alleged corruption surrounding the purchase of military equipment for NATO following the arrest of two suspects in Belgium on Monday.
May 15, 2025
Trust Settles Russian Bank's Asset Claim In $850M Fraud Case

A Russian bank and a Cayman Islands trust have reached a settlement in a $850 million fraud claim in which the state-owned lender is seeking to claw back money allegedly embezzled by Russian businessman Boris Mints.

Editor's Picks

6 Bombshell Moments From Staley's Bid To Clear His Name

Jes Staley has suffered a bruising week as he testified about his relationship with Jeffrey Epstein, culminating in an admission by the former banker that he had sex with a member of the disgraced financier's staff.
5 Questions For Spencer West Partner Karl Foster

The Financial Conduct Authority's approach to enforcement and consumer protection has come up against government economic growth priorities and resistance from the sector to its proposals to "name and shame" companies early on during regulatory probes.
UK Russia Sanctions Face Landmark Test At Supreme Court

The U.K.'s sanctions regime faces a major test on Wednesday as billionaire Eugene Shvidler seeks to have his financial restrictions cast off — the first case to challenge Russian sanctions that has reached the country's highest court.

Expert Analysis

Guidance Offers Clarity On UK Foreign Influence Registration

The Home Office's recently released guidance on the new Foreign Influence Registration Scheme provides important context for different industries and sectors, highlighting that careful assessment of interactions with foreign entities and governments is needed to determine whether registration is required, say lawyers at Skadden.
FCA Review Highlights Valuation Standards For Private Funds

The Financial Conduct Authority’s recent review of private funds valuation practices underscores the increasing importance of conducting robust and independent procedures, offering an opportunity for fund managers to strengthen their current valuation frameworks and improve investor confidence, say lawyers at Greenberg Traurig.
UK Data Disputes Could Become Competition Class Actions

While mass data protection claims have chafed against the procedural restrictions that apply to class actions under U.K. law, it is possible these claims will be brought into the fold of the rapidly growing Competition Appeal Tribunal scene, says Aislinn Kelly-Lyth at Blackstone Chambers.
What Cos. Need To Know About EU's AI Action Plan

The European Commission’s recently unveiled artificial intelligence continent action plan aims to position the European Union as a global AI leader, but with tension surrounding the EU AI Act’s compliance obligations, organizations should prepare for potential regulatory divergence between the plan's pro-innovation approach and the act's more prescriptive regime, says Marc Martin at Perkins Coie.
Russia Sanctions Spotlight: Divergent Approaches Emerge

With indications of greater divergence and uncertainty in Russia sanctions policy between the U.K., European Union and U.S., there are four general principles and a range of compliance steps that businesses should bear in mind when assessing the impact of a potentially shifting landscape, says Alexandra Melia at Steptoe.
What Santander Fraud Ruling Means For UK Banking Sector

A London court's recent judgment in Santander v. CCP Graduate School held that a bank does not owe any duty to third-party victims of authorized push payment fraud, reaffirming the steps banks are already taking to protect their own customers from sophisticated fraud mechanisms, say lawyers at Charles Russell.
Fines Against Apple, Meta Set Digital Markets Act Precedent

The European Commission's recent fines against Apple and Meta, the first under the Digital Markets Act, send a clear message that the act's reach and influence on regulatory thinking is global, say lawyers at Waterfront Law.
FCA Update Eases Private Stock Market Disclosure Rules

The Financial Conduct Authority’s recently updated proposals for the Private Intermittent Securities and Capital Exchange System would result in less onerous disclosure obligations for businesses, reflecting ongoing efforts to balance an attractive trading venue for private companies while maintaining sufficient investor protections, say lawyers at Debevoise.
Key Questions As Court Mulls Traders' Libor Convictions

The U.K. Supreme Court is considering whether to overturn two traders’ Libor and Euribor manipulation convictions, with the appeal reinvigorating debate over the breadth of English common law’s conspiracy to defraud offense and raising questions about the limits of a judge’s role in criminal jury trials, says Ellen Gallagher at Vardags.
Foreign Countries Have Strong Foundation To Fill FCPA Void

Though the U.S. has paused enforcement of the Foreign Corrupt Practices Act, liberal democracies across the globe are well equipped to reverse any setback in anti-corruption enforcement, potentially heightening prosecution risk for companies headquartered in the U.S., says Stephen Kohn at Kohn Kohn.
Code Of Practice Signals Aim To Bolster UK Software Security

The U.K. government’s new code of practice for software vendors includes several principles that will help developers and distributors integrate security best practices, but without mandatory adoption, market inconsistencies may emerge, say lawyers at Deloitte.
Expect Complex Ruling From UK Justices In Car Dealer Case

While recent arguments before the U.K. Supreme Court in a consumer test case on motor finance commissions reveal the court’s take on several points argued, application of the upcoming decision will be both nuanced and fact-sensitive, so market participants wishing to prepare do not have a simple task, says Tom Grodecki at Cadwalader.
Why Cos. Should Investigate Unethical Supply Chain Conduct

The U.K. government’s recent updated guidance for businesses on reporting slavery and human trafficking in supply chains underscores the urgent need for companies to adopt transparent and measurable due diligence practices, reinforcing the broader need for proactive internal investigations into unethical or criminal conduct, say lawyers at Seladore and Matrix Chambers.
FCA Bulletin Highlights Risks Of Leaking Inside M&A Info

The Financial Conduct Authority’s recent bulletin on the consequences of leaking sensitive information during transactions, warning that such disclosure may result in market abuse allegations, demonstrates the regulator’s determination to root out and penalize insider dealing, say lawyers at Cadwalader.
New Anti-Corruption Task Force Bolsters Int'l Collaboration

The recent creation of an anti-corruption task force by the U.K., France and Switzerland demonstrates a commitment to tackling bribery within national and international frameworks, and organizations within these jurisdictions’ remit, including U.S. companies operating in Europe, should review their compliance practices to ensure they address diverging requirements, say lawyers at Skadden.