Legal News

Our Practice Compliance outlook as at 21 January 2025 maps proposed regulatory developments directly affecting law firm compliance, helping you to prepare in good time for any shifts that may impact your organisation and plans. Please review it thoroughly and carefully; key points that deserve particular attention are highlighted immediately below for ease. New items we’re tracking this month ICO draft guidance on the use of storage and access technologies— At the end of December 2024, the ICO opened a consultation on draft guidance covering how data protection law (including PECR 2003, SI 2003/2426) applies to storage and access technologies such as fingerprinting. The consultation ends on 14 March 2025. See: Data protection, AI and cybersecurity. Ransomware— The government has begun a consultation on proposals to counter the ransomware threat, including options for compulsory reporting of ransomware incidents. The...

On 17 January 2025, the High Court authorised an order for the white-collar anti-fraud authority, marking the first occasion the SFO has attempted to exercise a power brought in seven years earlier to pursue the contaminated wealth and holdings of corrupt elites in practical application to date. Yet instead of deploying the order to chase oligarchs' holdings, the SFO used it to obtain financial details concerning a property owned by Timothy Schools' former wife in order to inform ongoing inquiries. The lawyer received a 14-year sentence in 2022, having been found guilty of fraud for siphoning off millions of pounds earmarked for a legal aid fund improperly. The SFO considers this the first instance of a UWO being pursued post-conviction to restrain potentially tainted assets and compel accounts of the provenance of the property and acquisition. Securing the order...

Background to OTSI guidance Following Russia’s assault on Ukraine in February 2022, the UK brought in trade sanctions covering a broad spectrum of goods, technology and services. Although direct commerce between the UK and Russia has fallen markedly since these measures were imposed, Russia has continued attempting to source such items indirectly, often via intricate supply chains. This trend has heightened the exposure of UK businesses to sanctions circumvention and the diversion of products to Russia. The methods used to sidestep restrictions are diverse and evolve rapidly, including fabricated end-use details, routed shipments, and the involvement of professional sanctions evasion networks. Participants across supply chains must recognise the diversion threats created by Russia’s procurement activity in this changed environment. Among other provisions, UK trade sanctions bar the export from the UK of sanctioned items to, or for use in, Russia, even where those items are first...

Key trends shaping corporate ethics and compliance landscape in 2025 Stakeholder expectations often conflict From ESG criteria and supply chain disclosures to the priorities of a millennial workforce, alongside activist investors and consumers, pressure is mounting for companies to behave ethically and with social responsibility — not merely to meet legal requirements, but to mirror the wider values of customers, staff, investors and other stakeholders. Yet consensus on what counts as 'ethical' or 'socially responsible' is scarce. Consider the ongoing Carter v Southwest Airlines Co case before the US Court of Appeals for the Fifth Circuit, pitting the airline against a flight attendant over her social media posts about abortion. At its core lies the clash between an employee's right to voice deeply held views and an employer's aim to preserve workplace civility. Across issues spanning abortion, immigration, global warming and diversity, employees, investors and...

In this issue: Financial sanctions Cybersecurity Other Practice Compliance updates this week Daily and weekly news alerts Trackers New and updated content Financial sanctions FCDO announces new sanctions on Russian oil giants The Foreign, Commonwealth & Development Office ( FCDO), working with the United States, has unveiled sweeping sanctions on two leading Russian oil firms, Gazprom Neft and PJSC Surgutneftegas. Brought under the Russia ( Sanctions) ( EU Exit) Regulations 2019, SI 2019/855, the listings focus on producers pumping more than 1 million barrels a day, with output worth around £23bn a year. The objective is to markedly curtail Russia’s capacity to fund its war in Ukraine by restricting oil-derived income, which made up roughly a quarter of the 2023 Russian budget. This move follows earlier measures on 93 vessels within Russia’s shadow fleet,...

BBC World Service cited tests which it claimed showed that 17 products, largely own-brand lines, were likely to include Chinese tomatoes. The supermarkets offering these goods have challenged the BBC’s conclusions. The findings were also showcased in the BBC Panorama episode, ‘ What’s on Your Supermarket Shelves? The Dark Side of the Tomato Trade.’ The investigation reported that China produces about a third of the world’s tomatoes—principally from the Xinjiang region—where production is, it alleged, connected to forced labour involving Uyghurs and other predominantly Muslim minorities. Chinese officials reject assertions of coercion in the tomato industry and contend that workers’ rights are protected by law. This raises complex issues for UK grocers stocking such items, who may find themselves within the scope of the Proceeds of Crime Act 2002 ( POCA 2002) as a...

Prosecuting oligarchs Prosecuting oligarchs is only one gauge of how effective Britain’s sanctions regime has been, which has made their lives ‘more difficult in the UK’, according to Celestino Calabrese, the deputy head of illicit finance at the National Crime Agency ( NCA). Action for sanctions breaches has taken time to bite, notably, yet curbs on finance have stripped oligarchs of wealth and mobility while stopping their facilitators from moving assets beyond the authorities’ reach, Calabrese told Law360 in an interview. Britain’s success in tracing holdings and securing cooperation from the regulated sector overall is ‘why there seems to be a relatively low level of criminal enforcement activity’. As a result, indeed, it is ‘extremely difficult for designated parties to circumvent financial sanctions controls’, Calabrese said. ‘ The people that we’re looking at are very serious, and they’re looking at us and what we’re doing’, here, he...

In this issue: Financial sanctions Other financial crime Other Practice Compliance updates this week Question of the week Daily and weekly news alerts Trackers New and updated content Financial sanctions DBT issues guidance on countering Russian sanctions evasion and implementing no- Russia clauses The Department for Business and Trade ( DBT), working with the Office of Trade Sanctions Implementation, has released two guidance notes to help UK exporters tackle current and emerging patterns of Russian sanctions circumvention. The first sets out approaches to deterring and detecting evasion and circumvention; the second supports firms in embedding a ‘no re-export to Russia’ provision within export agreements. Although centred on trade measures against Russia, the materials are relevant to other jurisdictions subject to trade sanctions. They are aimed in particular at those exporting items on the Common High Priority Items List and goods vital to Russian weapons systems and military development. The guidance offers...

See Q& A: Where we act for the seller of a property at auction, are we obliged to carry out AML source of funds checks on the deposit paid by the buyer to the auctioneer before accepting the same from the auctioneer? There is not a universal obligation to verify the origin of funds for every client or every matter. However, the Money Laundering, Terrorist Financing and Transfer of Funds ( Information on the Payer) Regulations 2017 ( MLR 2017), SI 2017/692, as amended, do require you, where necessary as part of ongoing monitoring, to identify the source of funds used in a transaction. The MLR 2017 further mandate that you confirm the source of funds and the source of wealth when undertaking client due diligence ( CDD): for politically exposed persons, together with family members and known close...

Elsewhere, a Chinese woman accused of washing bitcoin faces trial, while former Barclays chief Jes Staley plans to contest his prohibition imposed by the Financial Conduct Authority ( FCA). And the Serious Fraud Office ( SFO) will finish the year still resisting ENRC's claim for £240m in damages over the agency’s mishandled investigation into the mining group affair. Here, Law360 surveys these matters alongside other corporate crime cases to monitor in the year ahead. SRA v Dentons, round two The Solicitors Regulation Authority ( SRA) intends to contest findings that Dentons’ anti-money laundering shortcomings did not amount to professional misconduct, a ruling delivered in June 2025 instead. At an appeal listed for 29 January 2025 in the High Court, the legal regulator will seek to overturn the Solicitors Disciplinary Tribunal’s dismissal of its case alleging Dentons UK and Middle East LLP breached...

In other developments, two ex-executives were partly cleared of bribery allegations and the Serious Fraud Office ( SFO) struck an eleventh-hour deal with Eurasian Natural Resources Corp ( ENRC). A judge also delivered a scathing judgment, concluding a once-favoured investment scheme was nothing more than a £250m Ponzi operation. Law360 sets out the standout corporate crime and civil fraud matters from the last year. Assange walks free after plea In June 2024, Julian Assange flew to Australia as a free man after admitting a conspiracy charge brought by the US Department of Justice ( DOJ), drawing a line under his ten-year fight to resist extradition to America. The unexpected resolution followed covert talks and a surprise private bail appearance in London. A session before a US federal judge in the Northern Mariana Islands, in the Pacific Ocean, capped a frenetic week. The pact halted the DOJ’s...

Over the past decade or so, enforcement was driven by a potent, City‑centred mix of rate‑manipulation and financial markets inquiries, together with international corruption probes—each delving into the boardrooms of some of the UK’s largest public limited companies. In the post‑pandemic era, though, the atmosphere has shifted as belts have tightened in government and at home. Agencies across the enforcement landscape have renewed their attention on offending that clearly resonates with the public (making sure money remains with those who earned it) and, accordingly, they are intensifying their pursuit of fraud. Naturally, fraud inquiries are nothing new. This is a revival, not a novelty, prompted by the pronounced rise in fraud in recent years—so marked that the problem has been described as a pandemic. Indeed, Office of National Statistics figures show that in the first half of 2024, fraud accounted for over 40% of all...

In this issue: Practice Compliance forecast Financial sanctions AML, CTF & counter-proliferation financing Data protection Other Practice Compliance updates this week Daily and weekly news alerts New and updated content Latest Q& A Practice Compliance Highlights 2024/2025 Practice Compliance forecast Our refreshed Practice Compliance forecast, current as at 18 December 2024, is now available. This edition covers: (1) the European Data Protection Board’s consultation on Guidelines 02/2024 concerning GDPR Article 48, (2) an expectation that the Legal Ombudsman ( Le O) will finalise its budget and business plan in Spring 2025, (3) an expectation that the Data ( Use and Access) Bill will be enacted in early spring 2025, and (4) the ICO’s indication that it intends to update its existing AI guidance in due course. See News Analysis: New Practice Compliance forecast as at 18...

As at 18 December 2024, our Practice Compliance forecast actively monitors anticipated regulatory developments and proposals affecting law firm compliance, helping you prepare for any adjustments that could impact your organisation. Please review it closely and carefully; however, we highlight a few key points that ought to be on your radar below. New items we’re tracking this month EDPB consultation on Guidelines 02/2024 concerning Article 48 GDPR — The European Data Protection Board ( EDPB) has issued Guidelines 02/2024 on Article 48 GDPR for consultation now. Responses are due by 27 January 2025......

Although most of the Amending Regulations took effect on 5 December 2024, some reporting duties for further parts of the economy will not start until May 2025, thereby affording affected market actors (high value dealers, art market participants, letting agents and insolvency practitioners) more than six months to get ready for these adjustments, including putting in place appropriate policies and internal controls where required. The Office of Financial Sanctions Implementation ( OFSI) has already refreshed its general guidance on UK financial sanctions, and its Frequently Asked Questions, to mirror the Amending Regulations, with tailored sector guidance also issued for bodies that will fall within the broadened reporting scope due to take effect next year. Below, we explore in greater depth the changes that are expected to have the broadest practical implications for UK...

In this issue: Financial sanctions Financial crime Data protection Other Practice Compliance updates this week Daily and weekly news alerts Trackers New and updated content Financial sanctions FCDO and OFSI revise sanctions statutory guidance notes to reflect changes to OFSI enforcement powers. The Foreign, Commonwealth and Development Office ( FCDO) and the Office of Financial Sanctions Implementation ( OFSI) have refreshed the statutory guidance notes on UK sanctions regimes under the Sanctions and Anti- Money Laundering Act 2018 ( SAMLA 2018) to align with the Sanctions ( EU Exit) ( Miscellaneous Amendments) ( No 2) Regulations 2024 ( SI 2024/1157). The update enhances OFSI’s capacity to obtain intelligence on industry adherence to financial sanctions and reinforces its enforcement powers. See: LNB News 05/12/2024 37. OFSI repeals general licences permitting payments to regulatory authorities and...

The UK ought to introduce a fresh whistleblower reward programme, giving company insiders a reason to steer investigators towards decisive, smoking‑gun material that can tip the balance in intricate economic crime cases, according to Nick Ephgrave, director of the SFO. Ephgrave warned of a ‘brain drain’ as tipsters head to the US to benefit from American agencies that pay for vital evidence. The chief of the white‑collar watchdog made the remarks at the unveiling of a new Royal United Services Institute ( RUSI) report urging a government consultation on the issue. Detectives trawling vast troves of digital data are, he said, ‘scrambling around in the dark’, hunting for crucial details that whistleblowers could readily highlight if they had a clear incentive. ‘ The risks often cited here...amount to an irrefutable case for this country,’ Ephgrave said. ‘ Why, frankly, are we so...

In the UK, AI-related data breaches raise liability questions: who bears responsibility when an AI-enabled tool triggers a breach? Is it the software creator, the deploying organisation, or a third-party data processor? As AI advances, grasping the legal and regulatory regimes governing AI-driven breaches is essential to meeting these issues and safeguarding individuals’ rights. This article considers these matters from the perspective of, assessing the current legal landscape, real-world examples of AI-associated breaches, and practical measures to reduce liability. Clarifying accountability in AI is therefore a pressing concern in real-world settings. What is AI and how is it defined under UK law? Artificial Intelligence ( AI) describes computer systems that emulate human cognition, learning from data and refining performance over time. It spans simple rule-based decision tools through to sophisticated systems capable of independently diagnosing medical conditions or operating vehicles. Because AI depends on data,...

In this issue: Financial sanctions AML, CTF & counter-proliferation financing Other financial crime Data protection Cybersecurity Other Practice Compliance updates this week Lex Talk®Practice Compliance: a Lexis®Nexis community Daily and weekly news alerts Trackers New and updated content Financial sanctions Spotlight on Corruption has issued an analysis of the recent Commons Treasury Select Committee session with the Office of Financial Sanctions Implementation ( OFSI), casting a harsh light on the UK’s lacklustre sanctions enforcement. Since 2022 there has been only a single £15,000 penalty, no criminal convictions since 2012, and assets seized amount to under £1m, leaving enforcement looking weak. Even so, OFSI’s docket has grown to 400+ investigations, and the Foreign Secretary has confirmed a government review of the sanctions regime is in train. Evidence at the hearing indicated scope for stronger co‑operation between OFSI and law enforcement, albeit with ongoing worries around transparency. Together, these signals point towards a potential pivot to firmer...

OPBAS The Office for Professional Body Anti- Money Laundering Supervision ( OPBAS), part of the Financial Conduct Authority, cautioned in a letter dated 29 November 2024 that firms engaged in conveyancing may wrongly assume other parties in the chain will tackle money laundering risks. OPBAS also urged supervisors to take a more robust stance. The office oversees 25 professional associations and supervisory bodies for lawyers and accountants, including the Law Society, the Solicitors Regulation Authority and the Association of Chartered Certified Accountants. Referring to conveyancing, it said there is further scope to strengthen risk management and raise the chances of disrupting money launderers. As the organisation noted, conveyancing covers private individuals, estate agencies and other participants such as lawyers and accountants who are subject to AML supervision. Given the complexity, it observed a risk of reliance......