Parliamentary vote to introduce failure to prevent economic crime offence in the Financial Services Bill abandoned, pending Law Commission review

A further twist in the potential creation of a failure to prevent economic crime offence: last week a cross-party group of Members of Parliament tabled an amendment to the Financial Services Bill which, as drafted, would hold bodies “authorised or registered by the Financial Conduct Authority” liable for fraud, false accounting and money laundering offences committed by their employees. Continue reading

Ministry of Justice publishes its Response to the Call for Evidence on Corporate Liability for Economic Crime

On 3 November 2020, the Ministry of Justice published its response (the “Government’s Response”) to its Call for Evidence on corporate liability for economic crime which was launched in January 2017 and ran until March 2017 (the “Call for Evidence”). The Government’s Response has been long awaited but does not reach any definitive conclusion on the way forward for reform. Continue reading

Airbus and SFO enter into UK’s largest Deferred Prosecution Agreement

On 31 January 2020, Dame Victoria Sharp, the President of the Queen’s Bench Division sitting in the Crown Court in Southwark, approved the Deferred Prosecution Agreement (“DPA”) between the UK Serious Fraud Office (“SFO”) and Airbus S.E. (“Airbus”), the ultimate parent company of the Airbus Group. Under the DPA, Airbus must pay €990,963,712 to the SFO — the largest UK DPA financial settlement to date and greater than the combined total of all previous financial settlements under UK DPAs.

Continue reading

HKMA to monitor industry’s progress in preparing for transition from IBORs to ARRs

In a circular issued to authorised institutions (AIs) on 23 October 2019, the Hong Kong Monetary Authority (HKMA) indicated that it will conduct a regular survey to collect information on AIs’ exposures referencing interbank offered rates (IBORs) and their progress in preparing for transition to alternative reference rates (ARRs). Depending on the survey results, the HKMA will take appropriate follow up action.

Continue reading