Fraud Newsletter 44 June 2020

CASES

Civil trial: LPP lost on limited waiver of privilege re documents provided by Barclays and used by SFO at criminal trial. LPP also lost on advice after reliance on lawyers’ clearance of what was proposed: PCP Capital Partners v Barclays [2020] EWHC 1393 (Comm).

Defence affidavits provided not under compulsion in disqualification proceedings re Ponzi fraud available at common law to SFO prosecuting the same matter: Official Receiver v Skeene [2020] EWHC 1252 (Ch) (Westlaw).

Search Warrant: Standard Practice requires applicants to exercise scrupulous care; direct judge to the issues and case law; provide a short skeleton filed in advance: Ashbolt v HMRC [2020] EWHC 1588 (Admin).

International Co-Operation and UK Search Warrant: appropriate measure to be used are a matter for the law enforcement agency assigned by the UK Central Authority: R(Terra Services Ltd) v NCA [2020] EWHC 1640 (Admin).

Principles and guidance on retention, copying and disclosure of complainant’s digital records set out: Bater-James [2020] EWCA Crim 790 §§ 65-100.

SENTENCING AND CONFISCATION

Acquisition in good faith without notice s308 POCA: receipt of assets from a domestic partner known to be a convicted fraudster can put a reasonable person on notice and amount to constructive notice that the assets stemmed from the proceeds of crime. NCA v Odewlae and Yadav [2020] EWHC 1609 (Admin).

BILLS, STATUTES & SIs

Sentencing (Pre-consolidation Amendments) Act 2020 to make provision for pre-consolidation amendments of sentencing law.

Cyber (Sanctions) (EU Exit) Regulations 2020 SI 2020 No. 597: Explanatory Note

Commission Delegated Regulation (EU) 2020/855 deletes Bosnia-Herzegovina, Ethiopia, Guyana, Lao People’s Democratic Republic, Sri Lanka, Tunisia, and adds Bahamas, Barbados, Botswana, Cambodia, Ghana, Jamaica, Mauritius, Mongolia, Myanmar/Burma, Nicaragua, Panama and Zimbabwe to the list of countries with strategic AML/ CTF deficiencies.

CONSULTATIONS, GUIDANCE, CIRCULARS AND REPORTS

Asset recovery and confiscation: Ensuring that crime does not pay: EU Report COM (2020) 217 final: 2 Jun 20.

 Report on FCA’s decision not to investigate fraud in motor insurance industry: Complaint’s Commissioner 12 May 20 (published 2 Jun 20): criticism at §9 – “There is a persistent tendency in the FCA . . . to give the impression that fraud is not a matter in which it has an interest.”

Government Functional Standard: GovS 013: Counter fraud: applicable to all Gov. Departments: Cabinet Office: 25 June 20. Summary.

Guidance on Conducting Investigations Remotely:

Ruby Hamid, Ashursts: 1 Jun 20.

How to report suspected market abuse as a firm or trading venue: (updated) 12 Jun 20 and How to report suspected market abuse as an individual: FCA 12 Jun 20.

Mobile phone data extraction by police forces in England and Wales: ICO Investigation Report: 18 Jun 20. Summary.

Private Prosecutions: Safeguards: Inquiry into adequacy of safeguards preventing miscarriages of justice in private prosecutions. Written submissions by 1 July ! HoC Justice C’tee. Summary: 24 June 20.

Lessons Learned from Forensic investigations in a Global Lockdown: Webinar: A&M Disputes & Resolutions 2 Jun 20.

Global mapping of anti-corruption agencies: Analysis Report: AFA (Agence-Française-Anticorruption) 14 May 20.

Nothing to see here? Middle-men in the UK and Spain are falling short of anti-money laundering requirements: Transp Internat: 12 Jun 20

Prevention of money laundering/ combating terrorist financing (2020 Revised version) Part 1; Part II Sectoral Guidance and Part III Specialist Guidance: JLMSG: 1 June 20.

SFO Response to HMCPSI Case Progression in the SFO (8 Oct 19): SFO 2 June 20. (HMCPSI summary) 

FCA bars Cypriot investment firms that uses unauthorised celebrity endorsements: FCA 1 June 20.

Lloyds fined £64 m by FCA for mistreatment of mortgage customers in arrears 2011 – 2015. £300m compensation paid: FCA Final Notice: 11 June 20.

SFO withdraws 4 European arrest warrants in EURIBOR investigation: SFO: 10 Jun 20.

De La Rue investigation closed – failure to meet relevant test for prosecution. SFO 16 June 20.

German Wirecard (i) CEO reigns over missing £1.6B cash currently untraceable: FT 19 June 20. (ii) the £1.9B may not exist; 22 June (ii) CEO arrested: 23 June; (iii) files for insolvency owing £3.5B: shares drop 80% – Wirecard valued at €24B 2 years ago. 25 Jun. 20. FCA imposes requirements on UK Subsidiaries: 26 Jun 20. UK subsidiaries

Cash courier sentenced to 4.5 years for smuggling £12m out of UK over 6 months: NCA: 12 June 20

NEWS

Criminal complaint filed against Danske Bank by FSA (Denmark’s Financial Supervisory Authority) for failing to have adequate systems in place to prevent market manipulation by “wash” trades and market abuse: Reuters: 10 June 20.

Commerzbank London fined £37.8m (30% discount) for inadequate AML risk management systems over 5 years: FCA Final Notice: 17 June 20.

European Financial and Economic Crime Centre

launched: 5 June 20: EUROPOL.

EU promotes compulsory Arachne anti-fraud data mining software (stores and cross-refers data of 2m beneficiaries of EU funds) with 210 companies and 120m people behind them: EU Observer: 12 Jun 20.