Corporate Crime update - November 2020

Welcome to the November 2020 edition of our corporate crime update – our round up of developments in relation to corruption, money laundering, fraud, sanctions and related matters. Our update now covers a number of jurisdictions.

For the full update on each jurisdiction, please click on the name of the jurisdiction below. Below we provide a brief overview of what is covered in each update.

UNITED KINGDOM/ EU/ INTERNATIONAL

United Kingdom

• SFO: Three former Unaoil executives sentenced for bribery
• SFO charges individuals with fraud in relation to activities of steel group
• SFO charges former executives of global security company with fraud against taxpayer
• SFO charges three individuals in fund investigation
• SFO secures £5.45 million confiscation order against former executives of Afren Plc
• SFO charges company and three individuals following corruption investigation
• SFO secures third DPA of 2020
• New DPA guidance in the SFO's Operational Handbook
• Ministry of Justice publishes its response to the call for evidence on corporate liability for economic crime
• SFO Annual Report and Accounts 2019 – 2020
• SFO: Director Osofsky speech on future challenges in economic crime
• SFO: Director Osofsky re-examines priorities of SFO at Cambridge Symposium on Economic Crime
• HMCPSI inspection of SFO’s response to Covid-19
• FCA consultation on extension of annual financial crime reporting obligation
• FCA: Changes to FCG now in force
• FCA: £1.6 million confiscation order against Richard Baldwin
• FCA: Criminal proceedings brought against three individuals
• FCA final notice to trader following insider dealing conviction
• NCA Annual Report and Accounts 2019/20
• NCA: Businessman with links to serious crime settles £10 million UWO case
• NCA recovers more than £1 million of assets
• HMT annual report on AML/CFT
• HMT consultation on economic crime levy
• FinCEN papers: Treasury Committee seeks answers from Ministers, HMRC and FCA
• OFSI updated guidance on financial sanctions in UK
• OFSI Annual Review 2019 – 2020
• OFSI quarterly report to Parliament on TAFA 2010
• HMRC releases details of breaches of 2017 MLR in 2019/2020
• BEIS response to consultation on Companies House reform
• BEIS CfE - UK approach for international regulatory cooperation
• The Money Laundering and Terrorist Financing (Amendment) (EU Exit) Regulations 2020
• Draft Sanctions (EU Exit) (Consequential Provisions) (Amendment) Regulations 2020
• Draft SI: Closing the bearer certificate loophole for collective investment schemes

EU

• EBA calls on Commission to establish single rulebook on AML/CTF
• European Commission: Speech on EU’s AML/CTF plans
• 4MLD/5MLD: Commission report on trusts and similar arrangements governed under Member States’ laws
• Commission Communication on EU’s AML/CTF framework
• EU 'Magnitsky Act' proposal to be announced soon
• CJEU: Russian oil company loses Crimea sanctions challenge
• EU High Representative: Declaration on international security and stability in cyberspace
• EU imposes sanctions on individuals for repression and election falsification in Belarus
• Europol highlights relationship between banks and sports corruption
• OLAF Director-General welcomes EPPO as a ‘game changer’
• EPPO: Chief Prosecutor and 22 Prosecutors take oath before CJEU

International

• FATF Annual Report 2019 – 2020
• FATF President speech at counter-terrorism conference
• FATF: Updated consolidated assessment ratings
• FATF report: ‘Virtual Assets: Red Flag Indicators of Money Laundering and Terrorist Financing’
• FATF President addresses GAFILAT Virtual Plenary Meeting
• OECD: Public-private efforts against corruption ‘must continue’ after Covid-19
• Wolfsberg Group statement on effective AML/CTF programmes
• Wolfsberg Group FAQs on Source of Wealth and Source of Funds

FRANCE

• Updated AFA recommendations
• Publication of the GRECO assessment report for France
• Publication of the Tracfin annual report
• Publication of the French Anticorruption Agency's annual report
• Publication by the AFA of a practical guide on gifts and entertainment
• Signing of a cooperation protocol between the AMF and the AFA

GERMANY

• Human rights compliance in Germany: Current steps towards a mandatory Human Rights Due Diligence Law

SPAIN

• Spain's National Court (Audiencia Nacional) acquits 34 defendants in the Bankia IPO

MIDDLE EAST

• Fraud of CEO of private jet firm against Dubai-based gift company
• Fraud and embezzlement by an employee of a law firm
• CEO of companies and his father sentences to prison in Dubai for AED 8 million scam
• AML developments in Dubai

HONG KONG/CHINA

Hong Kong

• Director and clerk charged with defrauding four banks
• Largest money laundering case uncovered
• Investigations into the surge in share price of Next Digital

China

• Chinese real estate tycoon jailed for 18 years

SOUTHEAST ASIA

Malaysia

• Former Cabinet minister’s senior private secretary charged with accepting and soliciting bribes
• Two Sabah company owners arrested for falsifying information to obtain supply contracts

Indonesia

• Former sports minister sentenced to seven years for a bribery case

Philippines

• Central Bank to review anti-money laundering compliance of banks

Thailand

• NACC and Democrat Party to look into alleged bribes

Singapore

• Capital markets services licence of Apical Asset Management revoked

Vietnam

• Chairman of the People’s Committee of Hanoi arrested

JAPAN

• New proposed provisions to deal with money laundering in trust agreements

AUSTRALIA

• Corporate Criminal Responsibility Inquiry Final Report released
• ASIC enforcement update for January to July 2020
• Modern Slavery Developments at the Commonwealth level
• Modern slavery developments at NSW level
• The Australian Combatting Corporate Crime Bill: What does it mean for companies?

UNITED STATES

• SEC amends whistleblower award program
• SEC whistleblower awards
• SEC Chair and Co-Director of Enforcement remark on Enforcement program
• SEC, FINRA and CFTC charge brokerage firm with AML and supervision failures
• SEC, CFTC and DoJ: Settlements reached in investment bank spoofing cases
• SEC charges prominent businessman and computer programmer with fraudulently promoting ICOs
• SEC charges consumer loan company with FCPA violations
• SEC and CFTC help victims of Ponzi scheme recover over $1 billion
• Further SEC enforcement actions
• CFTC Division of Enforcement announces record-breaking year
• CFTC whistleblower awards
• CFTC charges trading platform owners with illegally operating a cryptocurrency derivatives trading platform and AML violations
• CFTC Bank Secrecy Act Task Force case: Settlement in SARs and supervision failures
• CFTC orders firm and trader to pay $585,000 for spoofing
• CFTC: Firm vicariously liable for spoofing of trader
• CFTC charges individuals and company with spoofing in crude oil futures markets
• CFTC charges several individuals and companies in $165 million global binary options fraud scheme
• CFTC orders swap dealer to pay $127.4 million for spoofing, false statements, compliance and supervision violations
• Federal banking agencies issue joint statement on enforcement of BSA/AML requirements
• Agencies issue joint statement on BSA/AML due diligence requirements for PEPs
• FINRA podcast: Money laundering in the securities industry
• DoJ: Two former traders convicted of engaging in deceptive and manipulative trading practices in US commodities markets
• DoJ: Lawyer charged with fraud related to investment scheme
• DoJ: Florida company fined $16.6 million for violating FCPA anti-bribery provisions
• OFAC: Large bank to pay $583,100 to end Ukraine sanctions probe
• DoJ: Global nutrition company agrees to pay over $122 million to resolve FCPA case
• DoJ issues first FCPA advisory opinion in six years
• DoJ: Former forex trader sentenced to prison for price fixing and bid rigging
• DoJ: Largest ever seizure of cryptocurrency in the terrorism context
• OFAC designates eight Belarusian officials under sanctions regime