Fraud Newsletter 45 – July 2020

CASES

COVID related difficulties a reasonable excuse for SFO failure to comply with time for service for commencement of civil recovery proceedings: SFO v Karimova [2020] 6 WLUK (Westlaw) 

JR of refusal to award costs to private prosecutor after dismissal of fraudulent conspiracy and statutory fraud charges at preliminary hearing:  no jurisdictional error or defective reasoning found:   R (Wollenberg) v Cr. Crt Southwark [2020] EWHC 1915 (Admin) 1915. 

Jury directions considered re failure to mention matters in defence statement and no comment interview – conspiracy to commit fraud by false representation (solar panel investment scheme): conviction upheld: largely factual issue:  Black [2020] EWCA Crim 915. 

SENTENCING AND CONFISCATION

Consideration of third party interests in confiscation orders and s160A(2) POCA:  Hilton (N. Ireland) [2020] UKSC 29.   

£527k confiscation of all rents from 12 flats following failure to comply with enforcement notice is not disproportionate: Waya followed: R (Haringey LBC) v Roth [2020] EWCA Crim 967. 

BILLS, STATUTES & STATUTORY INSTRUMENTS

Global Human Rights Sanctions Regulations 2020 S.I. 2020 No. 680.  Explanatory Note 

Draft Money Laundering and Terrorist Financing (Amendment) (EU Exit) Regulations 2020: 15 July 20 and Explanatory Memorandum 

CONSULTATIONS, GUIDANCE, CIRCULARS AND REPORTS

Crown Court Compendium Part 1 updated 29 Jul 20 

Guidance on the preparation, admission and examination of expert evidence: Promoting Reliability in Expert Evidence: ICCA (Inns of Court College of Advocacy): 3rd ed.  8 Jul 20. 

Sound management of risks related to money laundering and financing of terrorism: Revised Guidelines: BIS – Basel Committee on Banking Supervision: 2 Jul 20: Press Release Summary 

12-Month Review of the Revised FATF Standards on 

Virtual Assets and Virtual Asset Service Providers:  FATF 7 Jul 20. FATF Summary. 

Report to the G20 on So-called Stablecoins: FATF: 7 Jul 20:  FATF Summary 

Technical consultation: 5th MLD and Trust Registration Servic– summary of responses: HMRC & HMT: 15 Jul 20. Summary. 

Guidance on the preparation, admission and examination of expert evidence: ICCA: 8 Jul 20 

Weak Link or First Line of Defence? The role of UK Export Finance in fighting corruption in a post-Coronavirus and post-Brexit trade drive: Spotlight on Corruption: Exec. Summary : July 20 

Pooled Client Accounts revision to JMLSG Guidance: incorporated in updated Guidance Prevention of money laundering/combating terrorist financing: Guidance for the UK Financial Sector: Part 1 JMLSG 28 July 20. 

Opinion 5/2020 on the European Commission’s action plan for a comprehensive Union policy on preventing money laundering and terrorism financing: EDPS 23 July 20. Press Release summary. 

NEWS

SFO:  (1) DPA: G4S Plc approval in principle to enter into DPA: 10 Jul 20:  SFO Press Release: 10 July 20.   Approved by William Davis J: 17 July 20: SFO Press release. 

(2) SFO secures Unaoil convictions for corruption re Iraqi oil contracts:  SFO News Release 13 Jul 20.   SFO Director Lisa Osofsky criticized in abuse hearing judgment – SFO will conduct an independent review of the issue on completion of all trials: Spotlight on Corruption: 13 Jul 20.   

(3) Annual Report and Accounts 2019-20: 21 July 20. 

(4) GPT Special Project Management Ltd, former MD and 3 individuals charged with corruption re Saudi contracts: 20 July 20. 

(5) £5.45m confiscation orders secured in Afren case: 31 Jul 20.  

NCA (1)  faces legal bill £1.5m for failed UWO claim. CA orders £500k immediate repayment: £1m further order anticipated: The Times 13 Jul 20. 

(2) EncroChat messages from “kingpin” criminals – ”NCA not fucking about” – “too much success”: 5 July 20.  

Deutsche Bank fined £120m for “significant compliance failures” in processing hundreds of transactions for Jeffrey Epstein: BBC News: 7 Jul 20. 

Decision Notice against Conor Foley Worldspreads CEO for market misconduct: FCA 3 Jul 20: FCA News Summary 

UBS setback in appeal against €4.5B fine for illegally soliciting clients and laundering proceeds of tax evasion (Feb 19).  Swiss Court has now ruled that historic data from 40k UBS Swiss clients must be handed to French tax authorities: 15 Jul 20: Yahoo Finance. 

1MDB scandal developments (1 Malaysian Development Berhad) fund allegedly plundered of 4.5b. Najib Razak (Malaysian PM 2009-2018) found guilty of 7 counts of corruption re £7.7m IMBD monies: trial re £448m still outstanding. BBC News 28 Jul 20.  Goldman Sachs settles for $3.9B with Malaysia:  DoJ investigation continues: BBC News 24 Jul 20.