Fraud Newsletter 46 – August 2020

CASES

Admissibility and weight: allegations of bribery based on confessions allegedly obtained by torture: although torture not proved on balance of probabilities it remains admissible when considering the facts in issue: Shagang Shipping Co Ltd (in liquidation) v HNA Group Co Ltd [2020] UKSC 34.

Late disclosure (of D’s own bank accounts) in ML trial: to assert a lie would not have been told on oath at trial if it was known that prosecution could prove it was a lie is not a good ground of appeal. Loss of time (28 days) served. Yousef [2020] EWCA Crim 1082

SENTENCING AND CONFISCATION

Confiscation benefit calculation – employment obtained using false representations (experience and qualifications) – 10 years’ net pay of £643k disproportionate as full restoration made through employment (dishonestly obtained but lawfully discharged): Andrewes [2020] EWCA Crim 1055.

Confiscation agreed by consent quashed where D wrongly informed he could seek variation of hidden assets finding within 3 months of the order: Blackledge [2020] EWCA Crim 1108 (Westlaw).

BILLS, STATUTES & STATUTORY INSTRUMENTS

Nothing of moment.

CONSULTATIONS, GUIDANCE, CIRCULARS AND REPORTS

Anti-money laundering and counter-terrorist financing: Supervision report, 2018-2019: Treasury: 6 Aug 20.

Publication of Source of Wealth and Source of Funds (Private Banking/Wealth Management) FAQs:

Wolfsberg Group (an Association of 13 Global banks): 7 Aug 20 and Developing an Effective AML/CTF Programme: 12 Aug 20.

Understanding risks and taking action for Trust or Company Service Providers – includes an ML risk assessment matrix: HMRC 17 Aug 20

Guidance to firms and their staff on how to apply UK AML/CTF requirements: (JMSLG: 27 Jul 20) has received Treasury ministerial approval: JMSLG 18 Aug 20.

EBA Response to European Commission consultation on AML/CTF Action Plan and the Establishment of an EU-level AML-CTF Supervisor: EBA: 19 Aug 20 and Press Summary.

FCA consulting on Extension of Annual Financial Crime Reporting Obligation: consultation re potential ML risks: FCA: CP20/17: 24 Aug 20. FCA Summary

NEWS

List of businesses for tax year 2019 to 2020 that have not complied with the 2017 money laundering regulations including Touma Foreign Exchange (fined record £7.832m) and Purplebrick Group (fined £266k): HMRC: 17 Aug 20.

Staggering scale of high level corruption alleged by Emilio Lozoya (ex head of Pemex – Mexican state oil) involving multi-million dollar bribes, campaign financing, 3 former Mexican presidents, lawmakers and aides: Guardian: 20 Aug 20. Viral video shows “Filth” of Corrupt Politics: OCCRP: 20 Aug 20.

SFO: Axiom Legal Financing Fund (Axiom): 3 individuals charged with diverting money for their own benefit and fraudulent trading: 21 Aug 20.

FCA obtain £10.715m restitution order against 2 companies and 3 individuals: FCA v Acacade, Alexandra Associates, Lummis, Lummis & Fox [2020] EWHC 2175 (Ch) FCA Press release: 10 Aug 20.

 FCA criticised for delays in providing documents into investigation of its regulation of London & Capital Finance: FT Adviser: 25 Aug 20. FCA letter of apology: 22 Aug 20.

 OneCoin founder’s brother to testify against her re alleged Ponzi scheme defrauding 3m cryptocurrency investors out of $16B: OCCRP: 25 Aug 20.

 Over £30m lost to pension scammers since 2017  according to complaints filed with Action Fraud (true figure likely to be higher): FCA 25 Aug 20.

 Investigation denies crime group £17m property portfolio: NCA: 26 Aug 20.