Welcome to the Summer 2021 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

• UK and EU sanctions in response to Belarus’ forced diversion of a Ryanair flight
• OFSI: Imposition of monetary penalty for breach of financial sanctions
• HMT: Call for evidence on the UK’s AML/CFT regulatory and supervisory regime and consultation on amendments to MLRs
• HMCPSI inspection report on CPS and SFO Proceeds of Crime Divisions
• NCA: Annual Report and Accounts 2020/21
• SFO secures two further DPAs
• Money Laundering and Terrorist Financing (Amendment) (No 2) (High-Risk Countries) Regulations 2021
• Home Office Circular 004/2021: SARs in the context of disclosure in private civil litigation
• ICO launches investigation into the use of private correspondence channels at DHSC
• SFO enters into DPA with Amec Foster Wheeler Energy Ltd
• SFO speech on making the UK a safe place for business
• FCA: ‘Dear CEO’ letter on common control failings in AML frameworks
• Revised POCA Codes of Practice
• Former Unaoil executive ordered to pay £402k in confiscation
• Law Commission discussion paper on corporate criminal liability
• Pensions Regulator comments on draft criminal offences policy consultation
• SFO seizes £248k from fraudster with account forfeiture order
• CPS: Updated guidance on money laundering offences
• The Sanctions and Anti-Money Laundering Act 2018 (Commencement No. 3) Regulations 2021
• NCA strategic assessment of organised crime 2021
• The Regulation of Investigatory Powers (Criminal Conduct Authorisations) (Amendment) Order 2021
• FCA charges individual with fraudulent trading and carrying on regulated activities without authorisation
• UK Serious Fraud Office confirms investigation into Gupta Family Group Alliance

EU

• EC: Consultation on guidance on the rules applicable to the use of PPPs in AML/CFT framework
• EC announces new EU AML Package
• EC: Consultation on proposed Directive on cross-border law enforcement access to bank account registries
• EP calls for corruption to be treated as a crime subject to restrictive measures
• EPPO and OLAF enhance cooperation
• ECA: Report on EU efforts to fight money laundering in the banking sector
• EC: Public consultation on freezing and confiscating proceeds of crime
• EC: Opinion on EU sanctions and “making available”
• EBA: Consultation on Guidelines on AML/CFT cooperation and information exchange

International

• FATF: Report on review of revised AML/CFT standards on virtual assets and VASPs
• FATF report on opportunities and challenges of new technologies for AML and CFT
• Wolfsberg Group statement on demonstrating effectiveness of AML and CFT programme
• FATF Report on EoRMT
• FATF: Guidance on proliferation financing risk
• FATF: CP on BO of legal persons; June 2021 Plenary outcomes; Report on environmental crime

 

FRANCE

• Climate Bill: stronger environmental justice
• French Parliament adopts a mechanism for the restitution of “ill-gotten gains”
• French Parliament: Evaluation of the Sapin 2 Law
• French Conseil d’Etat: assessment of governmental investigative powers
• Whistleblower protection: overview of the public consultation
• Publication of the 2020 activity report of the High Authority for Transparency in Public Life
• Disciplinary sanction and knowledge by the employee of internal ethical rules

 

GERMANY

• Update on implementation of the EU Whistleblower Directive

 

HONG KONG/CHINA

Hong Kong

• SFC issues circular regarding suspected ramp and dump scams involving market manipulation in shares of listed companies
• HKMA publishes seventeenth issue of Complaints Watch
• FSDC issues research report on cybersecurity strategy for Hong Kong financial services industry
• Sanctions and anti-terrorism updates
• SFC increases efforts to combat IPO-related misconduct and outlines approach in joint statement with SEHK
• MMT sanctions listed company and its directors for late disclosure of inside information
• Former bank employee imprisoned for bribery over customer data for business touting

China

• China top government body issues statement on tackling illegal activities in securities market
• Former official of China’s biggest policy bank accused of corruption
• Former anti-corruption investigator faces graft charges
• Over 1,100 arrested in China’s crackdown on crypto-related money laundering
• China’s central bank publishes proposed amendments to the Anti-Money Laundering Law for public consultation

 

SOUTHEAST ASIA

India

• RBI provides guidance in relation to customer due diligence for transactions in virtual currencies
• Covid-19: RBI announces extension of required periodic updating of KYC – restrictions on account operations for non-compliance

Malaysia

• UMNO leader charged with 106 counts of money laundering
• Laws on beneficiary ownership required in combating corruption
• First case of “smurfing” in Malaysia
• MACC announces 29 initiatives to eradicate corruption completed

South Korea

• Anti-corruption presidential secretary resigns over allegations of real estate speculation
• 12 South Korea ruling party lawmakers implicated in real estate corruption
• South Korea exposes cryptocurrency Ponzi scheme

Vietnam

• Possible 20-year prison sentence for arrested journalist

 

JAPAN

• Well-known animation studio and its president indicted for tax evasion
• Revised guidelines for the prevention of bribery of foreign public officials

 

AUSTRALIA

• Proposed restructure of Australian Securities and Investments Commission
• Parliamentary Inquiry into Australia’s AML/CFT financing regime
• Potential amendments to the NSW Modern Slavery Act
• Further Australian modern slavery statements now available

 

UNITED STATES

• Sanctions update June – August 2021
• HSF podcast series on sanctions law
• DoJ: Cryptocurrency fraudster sentenced for money laundering and securities fraud
• DoJ: Former construction executive sentenced for tax evasion and bribery scheme
• DoJ: Turkish businessman arrested for money laundering
• FDIC: Bank Secrecy Act/Anti-Money Laundering Examination Manual update
• SEC: Biotech company and executives charged in $10 million offering fraud
• DoJ: Former Minister of Government of Bolivia charged in bribery and money laundering scheme
• DoJ: Two bank executives charged for conspiring to launder money in connection with bribery and fraud scheme
• DoJ: Chadian diplomats to the US charged in connection with international bribery and money laundering scheme

 

SOUTH AFRICA

• State Capture of R57 billion
• South Africa has lost over R1.5 trillion to corruption in five years
• Minister of Health, Zweli Mkhize, put on leave following corruption allegations