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Corporate Crime & Compliance UK
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April 28, 2025
SFO Spent £4.7M On Abandoned Rio Tinto Corruption Probe
The Serious Fraud Office spent nearly £4.7 million ($6.28 million) investigating allegations Anglo-Australian miner Rio Tinto entered into corrupt contracts in Africa before shutting down the probe in 2023, the agency has revealed.
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April 28, 2025
Watchdog Warns Of Significant Errors In Digital Reporting
The accounting watchdog warned Monday that some companies listed on the London Stock Exchange are making significant errors in their digital annual reports through incorrect tagging.
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April 28, 2025
Court Compels Disclosure In £500K Phone Crypto-Theft Case
The victim of a phone-snatching in London has secured a court order compelling four companies offering digital asset exchange services to disclose documents tied to an alleged fraud perpetrated against them after £500,000 ($667,000) in cryptocurrency was drained from his account.
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April 25, 2025
Belgian Data Watchdog Blocks FATCA Transfers To US
Belgium's data privacy watchdog ruled that a government agency's transfers of personal data to the U.S. tax authority as part of the Foreign Account Tax Compliance Act is prohibited under European law.
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April 25, 2025
Deripaska Sues To Uncover Source Of Allegedly Forged Report
A Russian oligarch has asked a London court to order a business intelligence company to divulge the source of an allegedly forged report used to back up a former business partner's bid to challenge a $95 million arbitration award.
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April 25, 2025
Nightclub Owner And Accountant Guilty Of £4.9M Tax Fraud
A court has convicted a nightclub owner and his accountant of evading £4.9 million ($6.5 million) in tax, with the venue boss spending the money on luxury cars and a yacht, the U.K. tax authority said Friday.
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April 25, 2025
Tycoon's Son Loses Challenge To £3M Howard Kennedy Bill
The son of a diamond tycoon accused of swindling $1 billion from banks lost his bid for a court-ordered review of his legal bills from Howard Kennedy on Friday as the High Court said he knew of the climbing costs linked to his international fraud case.
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April 25, 2025
UK Law, Accounting Bodies Queried On Poor SAR Records
The anti-money laundering unit of the Financial Conduct Authority has told legal and accounting professional bodies to justify their failure to check the quality of suspicious activity reports by their member firms.
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April 25, 2025
Fess Up, Or Wait And See? SFO Policy Shift Stirs DPA Debate
The Serious Fraud Office's "cast iron" promise that companies self-reporting wrongdoing will duck prosecution could lead to a new wave of settlements — but only if other controversial reforms push businesses to the negotiation table, lawyers say.
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April 25, 2025
UK Litigation Roundup: Here's What You Missed In London
This past week in London has seen pub operator Stonegate sue insurance broker Marsh, a human rights lawyer sued for defamation by Russian businessman Ovik Mkrtchyan, and British toy-maker The Character Group reignite an employment dispute with a former finance director. Here, Law360 looks at these and other new claims in the U.K.
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April 24, 2025
Ofcom Unveils Final Child Safety Rules For Tech Cos.
The U.K. communications regulator finalized new rules Thursday to protect children's safety online, compelling technology companies to introduce "highly effective" age checks or face fines or nationwide bans.
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April 24, 2025
Marine Co. Claims Axis Bank Misled It Into $21M Loan Scheme
A marine energy company has sued the Dubai branch of India's Axis Bank for $41.7 million, alleging that the lender misled it into participating in a loan to a shipping company secured against ships that were later sold without its knowledge.
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April 24, 2025
Lloyd Firth On SFO's New Energy And UK Regulatory Shift
Lloyd Firth comes from a long line of blue-collar workers from the north of England. Bricklayers, mostly, but also coal miners and gas blowers from Barnsley's furnaces. Firth, whose father and brother still work in the trade, read books instead.
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April 24, 2025
Digital Pharma Biz Sues Lender Over CEO Loan Collusion
A digital pharmacy company has accused a small business lender of knowingly working with its former CEO to funnel huge unauthorized loans into the firm, ignoring clear signs that the executive was acting dishonestly and beyond his powers.
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April 24, 2025
Gov't Fairly Fired Anti-Fraud Officer Over Misconduct
An employment tribunal has found that the Department for Work and Pensions was right to fire a counterfraud officer for inappropriately accessing records on its customer information system because it was not the first time she had done so.
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April 24, 2025
Canfield Law Faces £4M Claim Over Alleged Property Fraud
A Hong Kong businessman has accused a London law firm in a High Court claim of failing to ask questions in connection with a high-value property deal, which he says facilitated a fraud that cost him more than £4 million ($5.3 million).
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April 24, 2025
Legal Exec Banned For Misappropriating £219K Client Funds
A legal executive has been disqualified and banned from working at law firms after the English solicitors' watchdog concluded that he had misappropriated £219,000 ($292,000) from a dead client's estate.
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April 23, 2025
SFO Updates Rules To Cut Deals With Firms That Come Clean
The Serious Fraud Office said on Thursday that it is ready to cut deals with companies that come clean about their suspected crimes, part of a major policy change designed to boost the flagging number of corporate settlements.
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April 23, 2025
Rainer Hughes Founder Accused Of Laundering Fraud Funds
Prosecutors accused a founder of Rainer Hughes LLP of laundering the proceeds of a multimillion-pound alcohol tax fraud at the beginning of a criminal trial in London on Wednesday.
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April 23, 2025
Lawyers Face Misconduct Case For Letting Trainee Run Firm
The Solicitors Regulation Authority told a disciplinary tribunal on Wednesday that a group of lawyers were guilty of misconduct for allowing a trainee to buy and run a firm, leading to accounts rules breaches and a mishandled case.
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April 23, 2025
Brazilian Cos. Appeal EU Rulings Over Madeira Tax Scheme
Several Brazilian companies are appealing the European Union's court rulings that tax breaks they received in the Madeira Free Trade Zone are considered illegal state aid provided by Portugal, according to the Official Journal of the EU.
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April 23, 2025
Payroll Biz Exec Banned For 8 Years Over £2.5M Tax Fraud
The boss of a defunct payroll company that failed to pay millions of pounds in value-added tax was banned as a director for eight years on Wednesday after a government investigation into the business' significant tax underpayments.
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April 23, 2025
SFO Bribery Case Could Test Unanswered Legal Principles
Allegations by the Serious Fraud Office that an insurance broker failed to prevent bribery will tread new ground, a sign that the agency is willing to probe largely unanswered legal principles to test the extent of its powers, lawyers say.
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April 23, 2025
Apple, Meta Fined €700M In 1st Penalty Under EU Tech Rules
The European Commission said Wednesday it has fined Apple Inc. €500 million ($570 million) and Meta €200 million for failing to give consumers choices on offers and how their personal data is used — the first decision under the bloc's Digital Markets Act.
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April 22, 2025
SRA Fines Law Firm £37K For AML Compliance Failure
The English solicitors' regulator has hit a firm with an almost £37,000 ($49,000) fine after the firm admitted failing to carry out risk assessments required by anti-money laundering regulations.
Expert Analysis
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Competition Act Brings Important UK Merger Control Changes
Although recently effective sections of the Digital Markets, Competition and Consumers Act provide clarity on the transactions that may attract Competition and Markets Authority attention, some reforms potentially expanding the regulator's scope may be concerning to transacting parties, say lawyers at Fried Frank.
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How GCs Can Protect Cos. From Geopolitical Headwinds
Geopolitical uncertainty is perceived by corporate leaders as the biggest short-term threat to global business, but many of the potential crises are navigable if general counsel focus on what is being said about a company and what the company is doing, says Juliet Young at Schillings.
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What BT Ruling Will Mean For UK Class Actions
The Competition Appeal Tribunal’s recent dismissal of a £1.3 billion mass consumer claim against BT, the first trial decision for a U.K. collective action, reminds claimants and funders of the high bar for establishing an abuse, and provides valuable insight into how pending mass consumer cases may be resolved, say lawyers at Ashurst.
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Navigating PRA's Data Request For Crypto-Asset Exposure
The Prudential Regulation Authority’s recent data request for details on financial institutions' crypto-asset exposures should be used as an opportunity for firms to update their compliance procedures, and consider the future use of crypto-assets and related services, says James Wickes at RPC.
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Key Points From FCA Financial Crime Guide Updates
The Financial Conduct Authority’s recent updates to its financial crime guide reflect the regulator’s learnings on sanctions following Russia's invasion of Ukraine, highlighting and clarifying consumer duty, anti-money laundering and other compliance expectations, say lawyers at Womble Bond.
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Tax Directive Marks Milestone In Harmonizing EU System
The Council of the European Union’s recently adopted tax directive is a significant step toward streamlining and modernizing procedures for member states, and will greatly reduce administrative burden and compliance costs for cross-border investors, says Martin Phelan at Simmons & Simmons.
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Why Nonfinancial Misconduct Should Be On Firms' Radar
Following a recent Financial Conduct Authority survey showing an increase in nonfinancial misconduct, the regulator has made clear that it expects firms to have systems in place to identify and mitigate risks, says Charlotte Pope-Williams at 3 Hare Court.
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What New UK Code Of Conduct Will Mean For Directors
The Institute of Directors’ new voluntary code of conduct is intended to help directors make better decisions and enable U.K. businesses to win back eroded public trust, although, with no formal means of enforcement, its effectiveness could be limited, says Sarah Turner at Eversheds Sutherland.
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Russian Bankruptcy Ruling Shows Importance Of Jurisdiction
The U.K. Supreme Court's recent decision not to assist a Russian receiver in Kireeva v. Bedzhamov will be of particular interest in cross-border insolvency proceedings, where attention must be paid to assets outside the jurisdiction, and to creditors, who must consider carefully where to apply for a bankruptcy order, say lawyers at McDermott.
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Russia Sanctions Spotlight: UK Guides Offer Support To Cos.
The Office of Trade Sanctions Implementation’s recent guidance provides best practice suggestions that can help businesses mitigate the risk of their exports being targeted by Russian circumvention efforts, while noting that there is no one-size-fits-all approach to compliance, says Alexandra Melia at Steptoe.
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How Board Directors Can Adapt To Shifting Governance Tides
With European Union regulatory initiatives trending toward a sharp focus on ESG reporting requirements and ramping up pressure on corporate boards, directors should play a more active part in ensuring business objectives are aligned with regulatory demands, says Kallia Gavela at Alvarez & Marsal.
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How Listing Act Measures Will Modernize EU Capital Markets
The new European Union Listing Act, in line with the capital markets union initiative, aims to simplify market access for small and midsize enterprises, laying a foundation for a more integrated framework and representing a modernization milestone, say lawyers at Cleary.
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Forced Labor Imports Raise Criminal Risks For UK Retailers
Last summer’s London appeals court ruling applying the Proceeds of Crime Act to products made with forced labor, potential legislative reforms and recent BBC allegations about Chinese produce harvested by Uyghur detainees suggest British importers and retailers should increase scrutiny of their supply chains, says Ian Hargreaves at Quillon Law.
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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.
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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.