Legal News

In this issue: Practice Compliance forecast Financial sanctions Data protection Other Practice Compliance updates this week Daily and weekly news alerts New and updated content No Weekly Highlights on 24 April 2025 Practice Compliance forecast New Practice Compliance forecast as at 15 April 2025 The latest Practice Compliance forecast (as at 15 April 2025) is now available. This edition covers matters such as the Serious Fraud Office’s new business plan, the forthcoming Solicitors Regulation Authority ( SRA) diversity data submission, and live consultations, including the Law Society’s proposal on practising certificate fees. See News Analysis: New Practice Compliance forecast as at 15 April 2025. Financial sanctions OFSI releases Property sector threat assessment report on financial sanctions The Office of Financial Sanctions Implementation ( OFSI) has issued its Property and Related Services Threat Assessment Report. This forms part of OFSI’s sector‑specific series examining risks and vulnerabilities in UK financial sanctions compliance, delivered under its...

The successful prosecution of Dmitrii Ovsiannikov The successful prosecution of Dmitrii Ovsiannikov, the first person convicted of breaching the UK’s sanctions regime against Russia, has triggered debate among lawyers, who argue that pursuing spending on basic living costs sits uneasily with Britain’s foreign policy objectives. While police, prosecutors and ministers trumpeted the Southwark Crown Court verdict as a warning shot to oligarchs, some practitioners caution it may send the wrong signal. Carter- Ruck associate Tasha Benkhadra suggested the National Crime Agency’s efforts would be better directed at suspected circumvention tied to arms transactions and the funding of sectors essential to the Russian war effort. A Southwark jury found Ovsiannikov guilty of circumventing the UK sanctions regime on 9 April 2025, and he received a 40-month prison term on 11 April 2025. The case alleged he and his family intentionally sidestepped financial...

Background This appeal concerns the Appellant’s challenge to the legality of statutory guidance from the Respondent, which treats a GRC confirming a person’s gender as female as bringing them within the Eq A 2010 definition of ‘woman’. The Gender Representation on Public Boards ( Scotland) Act 2018, an Act of the Scottish Parliament ( ASP 2018), sets targets to boost the share of women on public boards. Originally, ASP 2018 defined ‘woman’ to include those with the protected characteristic of gender reassignment: individuals living as women and proposing to undergo, undergoing, or having undergone a process of gender reassignment. In 2022, following a challenge by the Appellant ( FWS1), the Inner House held that this statutory definition was unlawful, as it addressed matters beyond the Scottish Parliament’s legislative competence. After FWS1, the Respondent published revised statutory guidance, which is now under...

Our Practice Compliance forecast as at 15 April 2025 Our forecast monitors anticipated regulatory developments affecting law firm compliance, helping you prepare for any adjustments that could matter to your organisation. You should examine it closely, but key points that warrant attention are outlined below. New items we’re tracking this month SFO Business Plan—the Serious Fraud Office ( SFO) intends to widen prosecutions using the ‘failure to prevent fraud’ offence, bolster intelligence capabilities, and deepen partnerships, while introducing whistleblower incentives and refreshed corporate guidance. See: Other financial crime compliance items. Diversity data reporting—the Solicitors Regulation Authority ( SRA) requires law firms to report and publish diversity data every two years......

What does the Guidance cover? The Guidance covers the following topic: Core principles of anonymisation and pseudonymisation The Guidance opens by affirming the core legal position: anonymised information lies beyond the reach of the United Kingdom General Data Protection Regulation, Assimilated Regulation ( EU) 2016/679 ( UK GDPR), whereas pseudonymised information does not. The ICO then explains how this plays out in practice and the advantages linked to each category of data. It frames anonymisation as a personal data minimisation exercise, and pseudonymisation as a means of mitigating risk. Anonymisation involves transforming data so that the individuals to whom it pertains are not, or are no longer, identifiable. Under the UK GDPR, the standard is ‘effective’ anonymisation—reducing the chance of a person being identified to a sufficiently remote level, thereby severing any link between the information and the individual. Merely removing direct...

Businesses operating in Great Britain must stay course on DEI If you are based in Great Britain ( GB) and curtail DEI measures for your workforce here in reaction to the recent stance of the US Administration on DEI, you materially heighten the likelihood of unfavourable findings of discrimination against your organisation. For GB businesses, mirroring US companies by scrapping or diluting DEI commitments makes no legal sense within the existing GB framework. Should US jurisprudence track the current Administration’s line on ‘affirmative action’, it would simply bring the US into closer alignment with established GB law and practice. In GB, ‘positive action’ has never allowed race (or any other protected trait) to be used as a selection device to prefer applicants or candidates in recruitment or promotion, save for a narrow, seldom-invoked tie-break exception where contenders are genuinely evenly matched. US law has not...

Late last year, the Home Office issued a policy paper. It was triggered by a House of Lords committee review into the effect of MSA 2015. While the committee hailed MSA 2015 as pioneering, it emphasised that ‘the world has changed and best practice has moved on’. It urged government to introduce ‘proportionate sanctions’ for organisations that fail to comply with the Act’s obligations; most notably the annual requirement for companies to report on measures to identify and prevent modern slavery. The report also portrays a ‘current approach of no enforcement’ in relation to MSA 2015. Under the Act, businesses with turnover exceeding £36m must publish a yearly slavery and human trafficking statement. However, it does not set out what that statement must contain. The policy paper further notes that, although the Home Secretary can seek an injunction to enforce...

In this issue: Financial sanctions Other financial crime Data protection Cybersecurity Other Practise Compliance updates this week Daily and weekly news alerts Trackers New and updated content Financial sanctions Lessons to be learnt from HSF Moscow sanctions penalty The Office of Financial Sanctions Implementation ( OFSI) earlier imposed a £465,000 penalty on Herbert Smith Freehills CIS LLP ( HSF Moscow) for breaching UK financial sanctions on Russia. In a blog, OFSI sets out what other organisations should take away from the case. It pinpointed insufficient due diligence and weak sanctions screening as central factors, and flagged three key compliance takeaways: grasp your sanctions risk exposure; follow internal procedures; and rigorously assess ownership and control arrangements. See: LNB News 07/04/2025 48. OFSI releases Legal Services Threat Assessment Report on sanctions risks OFSI has published its Legal Services Threat...

The EU AI rulebook adopts a phased rollout: some headline provisions take effect from August 2025, with most following in 2026. As these milestones approach, organisations are rushing to interpret an opaque legal text. Uncertainty stems from doubts about Regulation ( EU) 2024/1689 (the AI Act), notably its relevance during development, any extraterritorial reach, the meaning of central legal concepts, and the limits of the scientific research and development exemption. Development phase The AI Act indicates it does not extend to research, testing, or development activities for AI systems or models before they are placed on the market or put into service. However, a European Commission question‑and‑answer paper on general‑purpose AI ( GPAI) recognises that certain duties for model providers, implicitly or explicitly, relate to the development stage. These include: Notifying the regulator if providers anticipate GPAI models will exceed the Act’s training compute...

Background The initial iteration of the MCC‑ AI appeared in September 2023 ahead of the EU AI Act, setting out a systematic route for sourcing AI. Following the EU AI Act’s formal entry into force on 13 June 2024, the Commission has updated the model clauses to better match regulatory expectations. The latest release comprises: a comprehensive edition for high‑risk AI systems a streamlined variant for non‑high‑risk AI systems a commentary detailing how to tailor and apply the clauses Why should companies get acquainted with the MCC- AI? The MCC‑ AI offers a practical framework for businesses buying or supplying AI services, by setting a shared baseline of obligations. The clauses foster alignment between parties on core compliance areas — transparency, risk management and accountability — consistent with the EU AI Act. By tailoring MCC‑ AI clauses to their...

Nick Ephgrave Nick Ephgrave acknowledged it was no secret that the SFO has witnessed a slight drop-off in the number of companies approaching the specialist anti-corruption body with suspected fraud and bribery within their organisation. To address this, the SFO intends to invest further in covert intelligence-gathering so it can better understand what is happening in corporate settings and, in turn, either pursue targets or encourage them to come forward, he told Law360 and reporters from other news outlets. Ephgrave said he wants to be more in control of the referrals received by an agency that largely depends on businesses volunteering information, with the aim of invigorating and provoking self-reporting by companies. He added that he is really seeking to drive up the number of corporates the SFO deals with, whether through self-reporting supported by revised corporate guidance, via...

Arguably, the priority is to designate a whistleblowing champion for the whole of government, rather than limiting the role to regulators, enforcement bodies, or a lone department. The moment is right. A proposed Office of the Whistleblower Bill—intended to set up an independent office to protect whistleblowers—was most recently brought before Parliament in December 2024. Honed over more than five years, its evolution has been shaped not only by whistleblower experience, but also by leading legal specialists who practise in this area day in, day out. Consequently, it marks a significant leap beyond other legislation, because it tackles fundamental questions such as: Who qualifies as a whistleblower? How can information be reported securely? What does protection from retaliation entail, and how can it be delivered promptly and effectively? How do we remedy the inequality of arms between...

In this issue: Financial sanctions AML, CTF & counter‑proliferation financing Other financial crime Data protection Other practice compliance updates this week Daily and weekly news alerts Trackers New and updated content Financial sanctions FCDO announces 13 new Global Anti- Corruption sanctions designations The Foreign, Commonwealth and Development Office ( FCDO), together with the Office of Financial Sanctions Implementation, has added 13 listings under the Global Anti- Corruption Sanctions Regulations 2021 ( SI 2021/488). Those named include individuals and entities in Moldova, Georgia and Guatemala linked to corruption—among them the pro‑ Kremlin Evrazia organisation, two Georgian judicial officials and seven Guatemalan officials, including former President Giammattei. The measures apply asset freezes and UK travel bans to the designated parties. See: LNB News 02/04/2025 50. OFSI extends bond restructuring licence and amends legal services...

Cole v Marlborough College (incorporated by Royal Charter) [2024] EWHC 3575 ( KB) What are the practical implications of this case? Although this was merely a case management hearing, the court reviewed earlier law (the Data Protection Act 1998), the current regime (the DPA 2018) and a prospective measure (the Data ( Use and Access) Bill) to identify the proper principles for assessing exemptions when dealing with DSARs. In this matter, the College’s position drew on X v The Transcription Agency LLP [2023] EWHC 1092 ( KB), asserting that, as a matter of principle, it was entitled to withhold documents from inspection. In X, the issue concerned whether the claimant should be given documents placed within closed bundles that were themselves being challenged. That issue arose because DPA 1998, s 15(2) contained an express rule permitting the court to examine documents holding the disputed...

A campaign led by Ekō is urging Meta to cease displaying targeted adverts to users. The effort refers to the settlement in letters sent to the company. ‘ This settlement confirms our right to object to the use of personal data for direct marketing’, Ekō notes in the project, which enables citizens to e-mail Meta to register their objections. O’ Carroll’s case could also significantly shape decisions on the pay-or-consent model, which Meta said it would pursue after the settlement, as the Commission prepares a final ruling in early April 2025 on whether such models align with Regulation ( EU) 2022/1925, the EU Digital Markets Act ( EU DMA). ‘ The potential ramifications [of the settlement] are massive, because it could provide a gateway not just for UK citizens, but also for a lot of Europeans to object to online...

The LSB graded the solicitors' watchdog as insufficient on operational delivery, citing 'serious concerns' about its authorisation, supervision and enforcement processes and about its risk assessment Departing from its previous assessment, the Legal Services Board ( LSB) has moved the Solicitors Regulation Authority’s ( SRA) status from green to amber for two standards that test whether regulators are well led and maintain an effective approach to supervision. On 31 March 2025, the LSB released its annual appraisal of the eight legal services regulators it directly oversees, spanning June 2023 to September 2024, and also considered information and relevant events up to publication. It has given the Bar Standards Board ( BSB) a red rating ('insufficient') for leadership and for operational delivery. The BSB is undertaking a programme of reform intended to enhance its efficiency and overall...

In this issue: Sanctions and export controls AML, CTF & counter-proliferation financing Other financial crime Other Practice Compliance updates this week Lex Talk®Practice Compliance: a Lexis®Nexis community Daily and weekly news alerts Trackers New and updated content Sanctions and export controls OFSI annual review reveals £25bn of Russian assets frozen The Office of Financial Sanctions Implementation ( OFSI) has published its 2023–2024 annual review, stating that £25bn in Russian assets have been frozen since February 2022, with 396 enforcement cases recorded. It sets out OFSI’s first proactive monetary penalty, the exercise of its disclosure power, and its inaugural counter-terrorism designation. Staffing has risen to 135 and 564 further designated persons were added to the sanctions lists. The review signals bolstered enforcement capacity and wider international co-operation. See: LNB News 21/03/2025 20. OFSI issues penalty to HSF Moscow for Russia...

Hanson outlined in full the ongoing programme of work that is under way, as ministers prepare for reform, during his keynote address to the Global Anti- Scams Alliance summit, staged in London on 26 March 2025 and 27 March 2025, according to the Home Office. The programme features detailed plans for partnering with industry and cross-border collaboration, as well as confronting technology-enabled fraud. ' Fraud is an ever more international business, driven by some of the most appalling criminal gangs operating in the world today', Hanson said in a statement......

The ECCTA 2023 obtained Royal Assent on 26 October 2023, and is being rolled out gradually in stages across the UK. The legislation aims to bolster corporate openness and visibility, enhance the UK's capacity to combat economic crime meaningfully and widen enforcement powers—especially regarding crypto-assets, fraud prevention and relevant company rules. Before ultimately taking office in 2024, the Labour Party condemned the failure to secure criminal convictions against financial services firms for wrongdoing linked to the 2008 financial crisis. Did they have a fair argument? Were the corporate criminal liability provisions then in force adequate? Should the Labour government reopen this field to craft effective measures to address corporate wrongdoing? Regrettably, recent Conservative reforms appear to have set the UK on a course likely to underperform and potentially be hard for Labour to unwind swiftly. The chances of achieving successful...

In this issue: Practice Compliance forecast Financial sanctions AML, CTF & counter-proliferation financing Other financial crime Data protection Other Practice Compliance updates this week Daily and weekly news alerts New and updated content Practice Compliance forecast New Practice Compliance forecast as at 18 March 2025 Our latest Practice Compliance forecast (as at 18 March 2025) is now available. This month we cover: (1) the introduction of the Crime and Policing Bill 2025; (2) the government’s JFT developing a new Fraud Strategy; (3) the ICO’s plan to issue refreshed guidance on data breach reporting; and (4) the SRA’s application window for specified solicitors to remain on the roll. See News Analysis: New Practice Compliance forecast as at 18 March 2025. Financial sanctions How UK Supreme Court may assess Russia sanctions cases Law360, London reports that in January 2025 the UK Supreme Court heard two...