The UK government recently published its fraud strategy paper: Fraud Strategy: Stopping Scams and Protecting the Public. The prevalence of fraud in the UK cannot be overstated: victims of fraud reported losing £2.35 billion in 2021 and recent research estimates fraud losses in 2021 equate to some £137 billion. The new fraud strategy has three … Continue Reading
Updated Friday 8 September 2023 The UK Government intends to introduce a new “failure to prevent fraud” offence as an amendment to its Economic Crime and Corporate Transparency Bill (the Bill). On 11 April 2023, the Home Office published a fact sheet (which was updated on 20 June 2023) and tabled an amendment to introduce the failure to prevent … Continue Reading
As we enter a recession against the backdrop of ongoing geopolitical instability, we expect to see significant financial crime enforcement and investigations in 2023, including a focus on emerging areas such as ESG, cryptocurrencies, and significant developments in financial sanctions. We predict that developments in 2023 will include: 1. Fraud We expect to see continued political … Continue Reading
Germany has become the latest country to agree on a plan to legalise recreational cannabis use among adults in a move that presents significant opportunities for investments in the EU’s largest economy. The Federal Cabinet has approved the key points paper for the legalisation, however a concrete draft law will only be presented once it … Continue Reading
Following an 18-month consultation process, on 10 June 2022, the UK Law Commission published a lengthy options paper (here with a summary here) for the UK Government on how it can improve the law to ensure that corporates are effectively held to account for committing serious crimes (the Options Paper). This article sets out the … Continue Reading
Executive Summary The UK Supreme Court recently confirmed in Bloomberg LP (Appellant) v ZXC (Respondent) [2022] UKSC 5 that in the UK a person under criminal investigation has a reasonable expectation of privacy prior to being charged. Background The claimant, an individual anonymised as ZXC, had been under criminal investigation by UK law enforcement. Bloomberg … Continue Reading
The High Court has recently held that a forensic report prepared as part of an internal investigation was not protected by litigation privilege. In The State of Qatar v Banque Havilland [2021] EWHC 2172 (Comm), David Edwards QC ordered the report and associated working papers within the defendant’s control to be disclosed on the basis … Continue Reading
On 7 July 2021, the UK Home Office published a circular (the Circular) setting out the Government’s position on the use of Suspicious Activity Reports (SARs) in civil litigation. There is a tension between the fact that SARs can be disclosable in civil litigation (see previous blog here) and that disclosing that a SAR has … Continue Reading
On 2 June 2021, the Crown Prosecution Service (CPS) updated its guidance on prosecuting failure to report cases under s330 Proceeds of Crime Act 2002 (POCA). Prior to the update, the CPS did not charge failure to report offences under s330 POCA where there was insufficient evidence to establish that money laundering was in fact … Continue Reading
On 28 April 2021, Airbus’ UK subsidiary GPT Special Project Management Ltd (GPT) was convicted of corruption and sentenced to pay penalties of over £30m by the Crown Court in London. This case preceded the wider investigation into Airbus culminating in its US$3.9 billion global deferred prosecution agreement in 2020 (see our previous article here). … Continue Reading
On 28 April 2021, the SFO published the statement of facts relating to the DPA that it agreed with Serco Geografix Limited (SGL) back in July 2019. The publication was made possible as a result of the ending of the trial of two former Serco directors, which collapsed this week as a result of issues … Continue Reading
The prosecution of two former Serco executives by the UK Serious Fraud Office (SFO) collapsed earlier today after failures in the SFO’s disclosure process. The SFO applied to adjourn the trial – which began on 30 March – in order to resolve those issues, but the application was refused and the jury was directed to … Continue Reading
Information requests from regulators can raise a host of complex legal and practical issues for entities and individuals. Our experts in this field have set out the key considerations around the production of information to UK and US regulators, including information-gathering powers, privilege issues and increased global data sharing. Information-gathering powers Many UK regulators have … Continue Reading
The Covert Human Intelligence Sources (Criminal Conduct) Act 2021 (the Act) received royal assent on 1 March 2021 but is yet to come into force. It will enable criminal conduct by a covert human intelligence source (a CHIS) in the course of covert intelligence gathering to be authorised (a Criminal Conduct Authorisation or CCA) by … Continue Reading
Today, 5 February 2021, the UK Supreme Court has handed down the long-awaited judgment on the extra-territoriality of the Serious Fraud Office’s powers to obtain documents. The Supreme Court held that Section 2 Notices do not have extra-territorial effect against a foreign company that does not carry on business in the UK. (R (on the … Continue Reading
The Serious Fraud Office (SFO) last Friday published its first specific guidance on DPAs (the Guidance). Lisa Osofsky, Director of the Serious Fraud Office, said that ‘publishing this guidance will provide further transparency on what we expect from companies looking to co-operate with us’. Inevitably, the new Guidance remains high-level with little detail on the … Continue Reading
The UK’s eighth deferred prosecution agreement (DPA) has been approved in relation to the UK Serious Fraud Office’s (SFO) investigation into G4S Care & Justice (UK) Ltd (G4S). The SFO’s investigation into G4S began in 2013 in relation to G4S’s provision of electronic monitoring services for the Ministry of Justice (MoJ) between 2005 and 2013, … Continue Reading
Last week, the National Crime Agency (NCA) saw its Unexplained Wealth Orders (UWOs) against the daughter and grandson of a former president of Kazakhstan overturned by the High Court. UWOs are an extension to prosecutors’ powers which were introduced by the Criminal Finances Act 2017. They require a person to disclose to the NCA details of how … Continue Reading
On 8 April 2019, the UK Supreme Court granted KBR Inc. leave to appeal against a decision that allows the SFO to compel certain foreign companies to hand over documents held overseas. The Supreme Court’s decision was published on 23 May 2019 (see here). KBR Inc. is appealing the judgment in R (on the application … Continue Reading
In a judgment recently published by the High Court (available here), a claimant has been granted the right to inspect suspicious activity reports (SARs) filed by his bank. The Court made the order in interlocutory proceedings brought in the course of an individual’s claim against his bank for breach of contract, breach of the Data … Continue Reading
Introduction The judgment in R (on the application of KBR Inc) v The Director of the Serious Fraud Office [2018] EWHC 2012 (Admin) came out on Thursday, 6 September 2018. In summary, the Administrative Court held that section 2(3) of the Criminal Justice Act 1987 (CJA), which (broadly) gives the SFO power to require a … Continue Reading
Medical cannabis is already big business in Canada. With the production of recreational cannabis due to be legalised there in October 2018 that business is expected to continue to grow, with Deloitte estimating that the total legal cannabis market will generate some CAD4.34 billion in 2019. However, UK corporates and financial institutions wishing to invest … Continue Reading
