September 2014

The Financial Crime Update provides regular insights highlighting recent developments in financial crime. We are sending you Financial Crime Update as you have previously received its sister publication, Regulatory Investigations Update, which has featured financial crime news until now.

In this Update, with contributions from our global offices and Allens, our partners in Australia, we will be reporting on some of the main developments across the globe in policy, legislation, investigations and case-law relating to bribery, fraud and corruption and considering the impact they may have on commercial organisations.

There has been an unusually high number of prosecutions recently that have resulted in fines for companies and terms of imprisonment for individuals, both in the UK and overseas. Providing a little clarity, the ICC’s guidance on gifts and hospitality policies is to be welcomed, while what it means to be “carrying on a business” in the UK is perhaps a little clearer following the Court of Appeal’s recent decision in the Akzo case.

The US SEC’s policy of offering large rewards to whistleblowers appears to be bearing fruit. Whether the UK SFO’s offer of a deferred prosecution agreement will have the same effect is uncertain, especially as it is now clear that the SFO will expect some degree of waiver of privilege by companies hoping to enter into one, including over documents such as witness interview notes. The SFO is no doubt currently congratulating itself on obtaining the first guilty plea in the Libor case – it will be hoping that rumours of its imminent demise are greatly exaggerated.

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