Fraud Newsletter 21 – July 2018

August 24, 2018

Fraud Newsletter 21 – July 2018


ENRC v SFO re Corporate LPP: CA (Civ) hearing complete:  judgment reserved (probably until next term).

False statement to FBI investigator is extraditable offence equivalent to perverting course of justice (US citizen interviewed in Rome): Dempsey v United States [2018] EWHC 1724 (Admin).

Private Prosecution for Fraud and Money Laundering. Appeal against decision to stay proceedings for abuse: general right to bring a private prosecution. Disclosure issues: Ds had argued trial would be unfair because of unfair disclosure approach by their prosecutors/employers. Appeal allowed for error of law and principle: D v A [2017] EWCA Crim 1172.

Precedence and the Per Incuriam rule: for a restatement of the doctrine of precedence (which some might think the application of Ivey ignored) see DN (Rwanda) v Sec. State for Home Department [2018] EWCA Civ 273, [2018] 3 W.L.R. 490, CA (Civ Div).

Terrorism Funding Arrangements: s17 TA 2000: “has reasonable cause to suspect” in s 17 means on the information known to D, there exists, assessed objectively, reasonable cause to suspect that the funds might be used for terrorism: Lane (Sally) [2018] UKSC 36.


Euribor Fraud: 8 years (after trial in absentia) and 5 years 4 months (after plea), 19 Jul 18.

Proceeds of Crime: Complex case. F & P (directors of VTL) were convicted of fraud (£4.55m tax evasion scheme) and subject to confiscation. F & P sued VTL for wrongful dismissal. VTL counterclaimed for a declaration that F & P’s property (monies from clients in the scheme) had been wrongfully obtained as fiduciaries i.e. that VTL had a proprietary interest in those monies. Held that VTL’s proprietary interest defeated HMRC confiscation (in personam) claim against F & P and their criminal acts could not be attributed to VTL: Fainchney & Perrin  v Vantis (CPS intervening) [2018] EWHC 565 (Ch), [2018] 1 Lloyds Rep FC 345 (Mann J).


New Appeals Guidance: Guide to Commencing Proceedings in the CA (Crim) Division: HMCTS effective from August 2018.

Criminal Procedure (Amendment No. 2) Rules 2018 S.I. 2018 No. 847: re mental health medical reports; changing grounds of appeal (as a result of James [2018] EWCA Crim 285); notices of appeal; etc. in force from 1 Oct 18.

Criminal Practice Directions Amendment No 7: in force 1 Oct 18. Summary of Key Changes.  See here for Consolidated Criminal Practice Directions including Amendment No 7.

European Union (Withdrawal) Act 2018 receives Royal Consent: 26 June 18. Various Statutory Instruments are likely to follow.

Investigatory Powers Act 2016 (Commencement No. 7 and Transitional and Saving Provisions) Regulations 2018 S.I. 2018 No. 873 bringing into force provisions of the Act on various dates.

PACE: Revised Codes of Practice: Police and Criminal Evidence Act 1984 (Codes of Practice) (Revision of Codes C, E, F and H) Order 2018 S.I. 2018 No. 829: in force 1 Aug 18.

Proceeds of Crime Act 2002 (References to Welsh Revenue Authority Financial Investigators) (Amendment) Order 2018 SI 2018 No. 67 extends WRA remit to detained property and frozen funds investigations (introduced by Criminal Finances Act 2017) as from 20 Jul 18.

Proposed EU Council Regulation to deal with cross-border VAT fraud by improving information exchange between EU states and authorities, 22 June 18.

Registration of Overseas Entities Bill: draft bill published by BEIS, 23 Jul 18.


Anti-Money Laundering: the SARS regime: Summary paper Law Comm, 20 Jul 18.

Anti-Money Laundering: the SARS regime: Consultation paper Law Comm. No 236, 20 Jul 18.

Code for Crown Prosecutors Consultation to close 17 Sep 18.

Concealment of beneficial Ownership FAFT Report 18 Jul 18.

Disclosure of Evidence in Criminal Cases House of Commons Justice Committee Report, 17 Jul 18.

EU AML implementation and enforcement: European Commissioner speech re future steps, 29 June 18.

HMRC consultation re their civil information tax powers 10 Jul 18.

Illicit Trade in the UK: re counterfeiting and smuggling genuine goods. All Parl. Group Report, Jul 18.

Investigatory Powers Act 2016:  Government response to consultation re data retention, 11 Jul 18.

Law Commission Annual Report 2017/18: 19 Jul 18. Future reviews to include misconduct in public office; a comprehensive sentencing bill; consent provisions of anti-money laundering regime.

Money Laundering and Terrorist Financing controls in higher risk jurisdictions: HM Treasury Advisory Notice 11 Jul 18.

Risk Outlook Report 2018/19: 67% increase in ml reports; £10.7m lost to cybercrime; 51 reports investment fraud – £47.4m since 2015.   SRA Report 25 Jul 18

The Scale and Nature of Fraud: a review of the Evidence: Home Office 16 Jul 18


Association of Corporate Investigators (ACi) formed: Inaugural Symposium 5 July 18.

Blackfriars Crown Court to close: Press release 24 Jul 18 .

Corruption:  Veil of Secrecy:  Is the fight against corruption being undermined by a lack of open justice?  Corruption Watch Report Jul 18.

Max Hill QC appointed new DPP: A-G Press Release, 24 Jul 18.

FATF (Financial Action Task Force)/ MENAFATF joint plenary meeting: 27-29 June 18: number of issues including: combatting terrorist financing; improving Criminal Justice Systems; financial Flows from Human Trafficking; Professional Money Laundering; vulnerabilities of crypto-currencies; etc. followed by FATF Report to G20 Ministers 19 Jul 18.

Money Laundering: Mifid II and the fight against financial crime: FCA Director of Enforcement and Oversight, 3 Jul 18.

New Fraud Court in City of London to be built: 18 court combined court to replace all City’s criminal courts (save the Old Bailey) with focus on fraud, economic crime, cyber-crime, 4 Jul 18.

Joint Chiefs of Global Tax Enforcement formed: HMRC, Canada, Netherlands, US & Australia – to tackle international tax crime & money laundering, 2 Jul 18.

SFO apply to serve a draft indictment (formerly a voluntary bill) against Barclays re 2008 Qatar funding: Reuters, 24 July 18.