On 25 May 2021, the National Crime Agency (NCA) published its national strategic assessment of serious and organised crime. Compared to 2020, the NCA concludes that the threat to the UK in respect of bribery and corruption has increased dramatically. Reasons for this include both the Covid-19 pandemic and Brexit. Key takeaways from the report … Continue Reading
On 27 May 2021, the Financial Reporting Council (FRC) published a revised version of its auditing standard on the responsibilities of auditors in relation to fraud. The revisions set out more stringent requirements to identify and assess the risk of material misstatement because of fraud and the procedures to respond to those risks. Such amendments … Continue Reading
On 27 May 2021, the European Banking Authority (EBA) issued a consultation paper regarding draft guidelines that set out how prudential supervisors, AML/CFT supervisors and financial intelligence units should cooperate and exchange information in relation to AML/CFT, in line with Article 117(5) of the CRD IV. The draft guidelines set out general provisions and practical … Continue Reading
On 4 May 2021, Transparency International published its “Making it count” report on measuring the effectiveness of anti-bribery and corruption (ABC) programmes (the TI Report). Authorities globally are focused on the practical effectiveness of companies’ ABC programmes. As the Department of Justice (DOJ) and Securities and Exchange Commission (SEC) Resource Guide puts it, authorities’ primary … Continue Reading
The Coalition for Integrity has published a report summarising how machine learning (or AI) can be used in anti-bribery and corruption (ABC) compliance programmes (the Report). The Report provides companies with key points to consider in determining whether (and if so how) they should consider developing or using machine learning solutions for their ABC programmes. … 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
On 26 April 2021, the UK government announced a number of designations under its new global anti-corruption sanctions regime, which is designed to stop “those involved in serious corruption from entering and channelling money through the UK” (see press release). Under the Global Anti-Corruption Sanctions Regulations 2021 (SI 2021 No. 488) the UK government has … Continue Reading
On 10 March 2021, the UK Office of Financial Sanctions Implementation (OFSI) published its revised guidance on Monetary Penalties for Breaches of Financial Sanctions (Guidance), which replaces the prior 2018 version and comes into force on 1 April 2021. From this date, the new Guidance will apply to all cases where OFSI becomes aware of … Continue Reading
On 11 March 2021, the Home Office launched an online registry for slavery and human trafficking (SHT) statements. This follows the Government’s response in September 2020 to a 2019 public consultation on potential options for strengthening section 54 of the Modern Slavery Act 2015 (the MSA), which requires certain commercial organisations to publish an SHT statement … Continue Reading
On 18 March 2021, we will be holding the first of our global webinars on putting into practice authorities’ expectations in relation to each of the components of an ABC programme. In this first session we will examine global expectations in relation to risk assessments – the starting point of an effective ABC programme. We … 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
The Serious Fraud Office (SFO) has announced that it has secured almost £1.2 million from Julio Faerman, owner of a luxury London flat which the SFO suspected to have been partly purchased with the proceeds of his criminal conduct in Brazil. According to the SFO’s press release, during ‘Operation Car Wash’, the investigation by Brazilian … Continue Reading
On 26 October 2020, the European Commission (the Commission) launched a public consultation[1] on sustainable corporate governance (the Consultation), soliciting responses from stakeholders on a possible EU sustainable corporate governance initiative with the aim of ensuring “that environmental and social interests are embedded in business strategies”. The Consultation will, according to the Commission, complement the … Continue Reading
Introduction Whatever the legal form of a joint venture, the collaboration and joint participation in the JV’s business objectives can present an enhanced corruption risk. This is because in some circumstances, a company entering into a JV could be criminally liable for the corrupt actions of its JV partner, the JV itself, or third parties … Continue Reading
On 22 September 2020, the UK Government published its response to a 2019 consultation on potential options for strengthening section 54 of the Modern Slavery Act 2015 (the MSA), which requires certain commercial organisations to publish a slavery and human trafficking (SHT) statement on an annual basis. Of most interest to businesses will be the … Continue Reading
Many companies have made significant donations of funds, goods and services as part of international relief efforts. These efforts are of course to be applauded, but it is important to be mindful of the bribery and corruption risks presented by charitable donations, particularly in emerging markets, and to take proactive steps to manage legal and … Continue Reading
In an Evening Standard article published on 26 April 2019, Lisa Osofsky, Director of the SFO, said she plans to work with HMRC to uncover tax breaches and tell offenders “You can spend 20 years in jail for what you did or wear a wire and work with us.” This is yet another example of … Continue Reading
