Fraud Newsletter No. 54 April 2021

CASES

Claim to 3.96 kg gold stored by owner using a false name and false documents not defeated by doctrine of illegality: Kitover v Galmerley Ltd [2021] EWHC 809 (Ch).

Serco Geografix Ltd statement of facts re DPA: 28 Apr 21.

SENTENCING AND CONFISCATION

6 years after trial upheld for revolving finance by an IFA who pocketed £900k client’s SIPPS monies: Say

[2021] EWCA Crim 520.

Fines for a small company and its sole director: sentencing approach: Western Trading Ltd and Chinderpal Singh [2020] EWCA Crim 1234, [2021] 1

Cr.App.R.(S) 44.

BILLS, STATUTES & STATUTORY INSTRUMENTS

Global Anti-Corruption Sanctions Regulations 2021 S.I. 2021 No. 488 (GACSR) made under Sanctions and AML Act 2018 (the “Magnitsky Act”). Designated persons may be excluded from the UK and subject to financial sanctions etc. UK sanctions 22 individuals involved in serious international corruption in Russia, Africa and Latin America under GACSR: FCDO 26 Apr 21.

Financial Services Act 2021 receives Royal Assent: 29 Apr 21: inter alia increases maximum penalty for insider dealing and financial services offences from 7 to 10 years: s. 31.

CONSULTATIONS, GUIDANCE, CIRCULARS AND REPORTS

6 year Review: HM Chief Inspector of CPS and SFO: HMCPSI No. CP001: 1282 (18 Mar 21).

European Union Serious and Organised Crime Threat Assessment: A Corrupting Influence: The Infiltration and Undermining of Europe’s Economy and Society by Organised Crime: EU SOCTA: 12 Apr 21: Summary: Europol.

Counting Rules for Fraud (so crimes are recorded consistently/accurately): Home Office: updated 9 Apr 21.

EU Strategy to tackle Organised Crime: EC COM (2021) 170 5 year strategy: Summary

2021: A critical Year for RegTech (use of technology for “the use of technology to help regulated firms meet their regulatory obligations”): City of London commissioned report by RegTech Associates: 16 Apr 21.

Comprehensive Framework to combat Ransomware: 29 Apr 21: Ransomware Task Force Report.

NEWS

CPS:

Accountant given 11 years’ for £1.3m fraud on NHS: 19 Apr 21.

FCA:

Insights from the 2020 Cyber Coordination Groups re major cyber security and threats: 29 Apr 21.

FCA commences criminal proceedings for fraud and unauthorised business: conspiracy to commit fraud by false representations re mortgage applications totaling £3.8m: 22 Apr 21.

PS21/4: Extension of Annual Financial Crime Reporting Obligation: Policy Statement: 31 Mar 21 increasing number of firms from 2.5k to 7kwho must submit an annual REP-CRIM return (range of indicators showing potential ML risks).