Legal News

Bogus cryptocurrency investment pitches comprised 40% of all reported fraud, eclipsing trading and stock scams, which accounted for 10% of reports, according to the data service on 8 April 2024. People aged 55 to 64 were the worst affected, with losses topping £133m, said Action Fraud. This sat within more than 30,000 investment fraud reports filed between January 2023 and January 2024. The average amount lost per victim exceeded £25,000, though some individuals lost millions. The City of London Police, the national lead force for fraud, cited a case where one person lost £11.9m to an investment scam. Investment fraud ruins lives and is a particular concern for the older segment of the UK public, said Temporary Detective Superintendent Oliver Little of the City of London Police......

This marks the first stage of the regulator’s climate‑related financial disclosure regime to be enforced, covering all FCA‑authorised firms, with rules on the labelling and marketing of investment products arriving later this year from July (see FCA, PS23/16: Sustainability Disclosure Requirements ( SDR) and investment labels, 28 November 2023). The regime extends to regulated activities undertaken by private enterprises, listed companies and public sector bodies alike. These measures are intended to ensure that statements made by regulated entities about the sustainability credentials of supposedly green products and services are fair, clear, not misleading, and consistent with the sustainability profile of the product or service. Yet are the new rules sufficient to resolve the problem of misleading information about a company’s green credentials and its products and services? Are these anti‑greenwashing provisions anything more than a greenwashing exercise themselves? They play well in public...

In this issue: Criminal liability Criminal procedure and evidence Proceeds of crime Bribery, corruption, sanctions and export controls Cybercrime and data protection offences Environmental offences Fraud, forgery, tax and theft offences Health and safety and corporate manslaughter offences Local authority prosecutions Money laundering Corporate Crime in Scotland Other corporate crime news Daily and weekly news alerts New and updated content Dates for your diary Trackers Useful information Criminal liability Mo J announces consultation on reform of Law of Apologies The Ministry of Justice has launched a consultation to amend the Law of Apologies under the Compensation Act 2006, aiming to empower public bodies, private organisations and their staff to make heartfelt apologies to those harmed, without creating legal liability. Views are also invited on how this should operate in cases of...

The EU’s General Court has overturned sanctions on the businessmen, striking their names from the list of designated individuals and ordering their delisting after their funds and assets had been frozen in the wake of the Russian attack in 2022. In its reasoning, the court stated that none of the grounds set out in the initial acts was sufficiently evidenced, so the inclusion of Mr Aven and Mr Fridman on the contested lists was not warranted. The judges held that, although there is material indicating the men maintained links with Putin and his entourage, the European Council, which made the designations, did not prove they supported Kremlin policies or the war, or that they offered any support or assistance to Moscow......

The yet unrectified problems, dating back to 2022, concern data provided by the telephone network provider Telefonica UK Ltd, trading as O2 UK. This piece examines the role of computer-produced evidence in criminal cases within criminal proceedings, the structural problems linked to its present deployment, and why the defence must be able to challenge the soundness of such data. Although the continuing Post Office Horizon IT Inquiry has prompted much-needed scrutiny and overdue examination of the trust placed in computer-derived material and the assumption that all of it is reliable, the UK government Home Office investigation has underscored the further clear need to question the supposed reliability of computer-based systems. In 1999, the UK Law Commission advised repealing section 69 of the Police and Criminal Evidence Act 1984, a proposal that was later implemented. When that reform took effect in 2000, it...

Search for ‘ Encro Chat’ and you will be met with a deluge of criminal cases stemming from Dutch and French law enforcement’s recent penetration of the encrypted messaging platform. In the UK, Justice Ian Burnett, in the Court of Appeal of England and Wales on 16 March 2023 in R v Peter Murray, recorded 950 convictions tied to Encro Chat evidence, and 1,800 defendants awaiting trial where such material sits at the heart of the prosecution; most are in custody. The infiltration of the messaging tool has sparked multiple legal challenges across jurisdictions, notably in the Netherlands and the UK, as outlined below. Yet whether this category of computer-derived material should be admitted, when judged against the integrity of the data, remains largely untested. This piece examines the Encro Chat infiltration, the convictions, and the UK legal contests so far. It...

The response places strong emphasis on artificial intelligence ( AI) safety while seeking to nurture innovation, mirroring the UK’s continuing preference for light-touch oversight of AI when set against other major economies, notably the EU. As in Britain, the EU seeks to advance AI tools and guarantee responsible deployment, yet it has opted for a markedly different regulatory path. The EU AI Act establishes a harmonised EU legal regime to ensure that AI systems introduced to, and operated within, the EU market are safe, subject to risk management, and aligned with EU fundamental rights and values. After the European Parliament formally adopted the EU AI Act on 13 March 2024, and with Council approval expected shortly, the instrument is poised to become the world’s first comprehensive AI statute. The UK’s scope to diverge from EU rules is among the outcomes...

In this issue: Investigating criminal conduct Criminal procedure and evidence Appeal and judicial review Sentencing Bribery, corruption, sanctions and export controls Environmental offences Financial services and pensions offences Fraud, forgery, tax and theft offences Health and safety and corporate manslaughter offences Insolvency offences and Companies Act offences Local authority prosecutions Money laundering Corporate Crime in Scotland International Lex Talk®Corporate Crime: a Lexis®Nexis community Daily and weekly news alerts New and updated content Dates for your diary Trackers Useful information Investigating criminal conduct UK to void NDAs that hinder crime reporting. On 28 March 2024, the government confirmed plans to ‘clarify’ the law so non-disclosure agreements that stop victims sharing suspected criminality with authorities will not be enforceable. See News Analysis: UK to nullify NDAs that stop...

Specifically, the resolutions show that: a business that does not voluntarily disclose misconduct and is a repeat criminal offender may still obtain a meaningful penalty reduction by co-operating and remediating the DOJ and the SEC are increasingly co-ordinating with overseas authorities on FCPA investigations firms can lessen FCPA exposure by linking remuneration to compliance, by creating and enforcing policies on third-party messaging applications and personal devices, and by rigorously vetting and monitoring third parties On 10 January 2024, the DOJ and SEC announced resolutions with SAP, a German software company. They allege that SAP breached the FCPA by, among other things, making improper payments to government officials in South Africa and Indonesia to secure and retain software and services contracts with government entities. SAP agreed to pay the DOJ and the SEC over US$220m and entered into a three-year deferred prosecution agreement ( DPA) with the DOJ. The US...

About £77bn was issued by lenders in government-guaranteed loans to keep firms afloat during the pandemic. Government data puts suspected fraud at £1.8bn. While sizeable, that sum is modest beside early assessments from the National Audit Office, the public spending watchdog, which suggested the real total for Covid loan fraud might reach £26bn. The revised outlook ‘is a world away from the sensationalist numbers bandied about four years earlier’, observed Daniel Staunton, an associate in Kingsley Napley LLP’s restructuring and insolvency team. The Bounce Back Loan Scheme, unveiled by the government in April 2020, enabled small and medium-sized enterprises to swiftly seek loans ranging from £2,000 to 25% of turnover, with a ceiling of £50,000. Ministers hailed the programme as successful, saying the schemes threw a lifeline to nearly 1.7m businesses nationwide and that 75% had been cleared in full by December 2023 or are...

Earlier this month, the International Criminal Police Organisation ( INTERPOL) unveiled its report titled ‘’ (the ‘ Report’). While the Report is not publicly accessible, INTERPOL’s press release explains that its purpose is to examine current patterns in cross‑border financial crime and to set out concrete measures that should be adopted to reinforce ongoing efforts to curb the flow of illicit finance. Key trends in global financial crime INTERPOL indicates that growing dependence on new technologies is allowing organised criminal networks to reach victims worldwide, often at scale, through more polished, professional fraud operations, broader in scope and scale, that require no advanced technical expertise and can be run at comparatively low cost. The Report highlights artificial intelligence and cryptocurrencies as leading drivers of today’s financial criminality, fuelling what it describes as an epidemic‑level surge in financial...

Justice Secretary, Alex Chalk, has said the move is intended to end the 'murky world of non-disclosure agreements' Under plans to curb misuse of NDAs, those bound by confidentiality clauses would still be free to raise alleged criminality with key professionals and crime-fighting bodies. On 28 March 2024, Alex Chalk set out an ambition to end the ‘murky world’ where such agreements are used to conceal wrongdoing, adding that the reforms will make clear in law that gagging orders cannot lawfully be wielded against victims to block justice or silence them. Lawyers and the police Medical practitioners and counsellors Advocates and other organisations that investigate crime The change will not bite immediately; legislation will be brought forward ‘when parliamentary time allows’, the Ministry of Justice said. The Mo J also confirmed the bill will not capture NDAs signed before it secures royal...

In this issue: Bribery, corruption, sanctions and export controls Environmental offences Financial services and pensions offences Health and safety and corporate manslaughter offences Insolvency offences and Companies Act offences Local authority prosecutions Money laundering Corporate Crime in Scotland Other Corporate Crime news Daily and weekly news alerts New and updated content Dates for your diary Trackers Useful information Bribery, corruption, sanctions and export controls New Russia sanctions showcase international enforcement reach. On 22 and 23 February 2024, the UK, US and EU unveiled substantial further measures to mark two years since Russia’s full‑scale invasion of Ukraine. See News Analysis: New Russia sanctions reveal international enforcement capabilities. SFO to pay ENRC £9m while challenging costs ruling. On 25 March 2024, the Serious Fraud Office said it will contest findings that it...

How does the jury system work in our country? The earliest recorded use of the jury trial in England can be traced as far back as 1220. Even so, for most people across society, jury trial did not become commonplace until the 18th century. Being judged by a jury of one’s peers for serious offences is widely regarded as a fundamental and enduring element and safeguard of the adversarial system in England and Wales today. Juries sit on the gravest crimes that are triable only on indictment (e.g. murder, rape, terrorism, etc.), and they are also available for ‘either way’ offences where a defendant may choose a jury trial instead (e.g. possession of a bladed article, theft, possession of drugs). In England and Wales, anyone on the electoral roll who is ordinarily resident in the UK and aged over 18 but under 76 can be...

The Court of Appeal has dismissed bids by Tom Hayes, 44, a former trader at Citigroup and UBS, and ex- Barclays banker Carlo Palombo, to overturn their convictions for allegedly false interest-rate submissions during the 2008 financial crisis. Their cases were referred by the commission that investigates potential miscarriages of justice after a US appellate court cleared Hayes’ alleged conspirators of comparable offences, a ruling that left the UK as the only jurisdiction in the world where such conduct remains criminal. Hayes was convicted in 2015 of conspiring to rig the London interbank offered rate, known as Libor, and received an 11-year prison term. Palombo, 45, was found guilty in 2019 of manipulating Euribor, the euro counterpart to Libor, and was sentenced to four years. Libor and Euribor were daily benchmarks set by leading banks that reflected the cost at which a bank could...

Disclosure in Lloyds Banking Group’s February annual report that the FCA is examining its AML controls places the lender on the long roll of major retail banks that have raised supervisory concerns in recent years. In the previous year, it emerged that Barclays Bank was the subject of an investigation by the regulator over a series of issues connected to its AML and know‑your‑customer frameworks. Several peers, including Banco Santander SA and HSBC Holdings plc, have incurred significant fines. Moreover, Nat West Bank held the unenviable distinction of being the first firm the FCA prosecuted for criminal breaches of the Money Laundering, Terrorist Financing and Transfer of Funds ( Information on the Payer) Regulations 2017, in December 2021. To date, no further prosecutions have been brought. This article will briefly outline the AML obligations incumbent on firms, consider why so many fall short of...

The anti-corruption watchdog said it plans to apply for leave to contest a High Court ruling that ex- SFO staff unlawfully liaised with Neil Gerrard, the former head of white-collar investigations at Dechert LLP, to make unauthorised revelations about his internal probe into ENRC. An appeal in the ten-year dispute loomed as, at a High Court hearing on 25 March 2024, the SFO said it would, ahead of any appeal, pay £9m on account towards ENRC’s wasted costs and legal fees. ENRC maintains it prevailed on most claims against Dechert and Gerrard, totalling £18m, and £17.5m against the SFO. The miner also seeks recovery of its litigation spend—over £16.9m—plus interest of no less than £11.5m. The London-based miner said it and the SFO are discussing a settlement. Dechert, having paid ENRC £20m in 2022 and nearly £9m in February 2023, has agreed a...

The latest measures further widen the already broad reach of sanctions on Russia. Importantly, certain additions pursue Europe-based individuals and entities suspected of sanctions evasion. This sits against a backdrop of Western governments closely scrutinising the effectiveness of sanctions on Russia and declaring an intention to ramp up enforcement against evaders. This article considers the expansion of sanctions from a UK viewpoint, with reference to the US and EU, and evaluates the UK government’s current steps to enhance the effectiveness of sanctions enforcement. Russia sanctions On 22 February 2024, the UK imposed over 50 new sanctions linked to the war in Ukraine, targeting core sources of Russian revenue and tightening controls on metals, diamonds and the energy trade. The following day, the US added more than 500 further sanctions targets in response to Russia’s invasion and the recent death of Russian opposition leader Alexei Navalny in a...

The Solicitors Disciplinary Tribunal ( SDT) has rejected the SRA’s prosecution of Dentons concerning its work for a politically exposed banker from a former Soviet state. The panel dismissed the case despite concluding the firm had contravened the Money Laundering Regulations 2007, SI 2007/2157. While the SDT found Dentons did not take sufficient steps to verify the client’s source of wealth, it decided there was no breach of the SRA’s principles. The tribunal has not yet released its reasoning. The SRA said it will review the written judgment before determining its next move... The outcome serves as a cautionary moment for the SRA after it obtained a series of fines against prominent firms for anti-money laundering failings. ‘ There’s no doubt that this is not the result the SRA will have wanted,’ commented Harriet Holmes, a manager at Thirdfort, a risk...

At a joint webcast meeting, the committees on economic affairs and on justice and home affairs voted overwhelmingly for a compromise on legislation earlier agreed by negotiators representing the Parliament and EU governments. The legislative package will set up a European authority to combat money laundering and the financing of terrorism......