Included in this issue: Royal Assent is given to Investigatory Powers Bill; SFO to defend Unaoil judicial review; SFO decide not to press charges against former Tesco head Philip Clarke and more...


Royal Assent is given to Investigatory Powers Bill

The Investigatory Powers Bill, which sets out the powers of the police and security forces to access and record electronic communications, has received royal assent.

The new act comes into force at the beginning of 2017. It seeks to consolidate pre-existing legislative powers and create new powers that were designed to assist police, security and intelligence agencies to combat terrorism., 29 November 2016

Bribery and Corruption

SFO to defend Unaoil judicial review

Unaoil has commenced its judicial review proceedings in the High Court against the Serious Fraud Office (SFO) regarding raids the SFO conducted at Unaoil's headquarters in Monaco. The SFO is currently running an investigation into suspected offences of bribery, corruption and money laundering.

It is understood that Unaoil is claiming that "the raid amounted to an 'excessively wide fishing expedition rather than a proper exercise' of its legal powers."

Judgement is to be handed down at a later date.

The Guardian, 1 December 2016

ISO publish new anti-bribery standard

The International Standards Organisation (ISO) has recently published an Anti-Bribery Management Systems Standard (ISO 37001) in order to help organisations implement and maintain effective anti-bribery and corruption systems.

The standard is not formally recognised by relevant authorities, however, it is intended to assist organisations prevent, detect and address bribery.

ISO, October 2016

Insider traders plead guilty

Three days into a trial brought by the FCA, two men have pleaded guilty to insider dealing. The first, Mr Manjee Mohal, was an employee of Logica Plc and used inside information to advance Logica in takeover negotiations with another firm CGI. The second man, Reshim Birk, was a neighbour of Mr Mohal and used the inside information to purchase shares in Logica before news of the takeover was made public.

Both men will be sentenced on 13 January 2017.

FCA, 30 November 2016

Transparency International concerned about limitations of new French AML legislation

In a recent press release Transparency International announced that, in its view, the new anti-bribery and corruption legislation in France does not go far enough. The new law was passed on 9 November 2016.

While Transparency International France felt the new legislation marked significant progress it was disappointed in the lack of independence of the future anti-corruption agency and the fact that the public register will not be mandatory for some organisations.

Transparency International, 23 November 2016


SFO decide not to press charges against former Tesco head Philip Clarke

It is reported that the lawyer acting for the former chief executive of Tesco's, Philip Clarke, has confirmed that the SFO has decided not to charge Mr Clarke in respect of his alleged involvement in the £326 million Tesco's reporting scandal.

It is understood that the SFO reached this decision on the basis that there is 'insufficient evidence to provide a realistic prospect of conviction'.

The Guardian, 29 November 2016

Money Laundering

Survey suggests increasing regulatory expectations create big challenges for AML professionals

Dow Jones Risk & Compliance and the Association of Certified Anti-Money Laundering Specialists (ACAMS) surveyed over 800 global anti-money laundering professionals in respect of the regulatory environment.

The survey found that the biggest perceived AML compliance challenge facing these professionals is increasing regulatory expectations. This was followed by 50% of respondents not having access to properly trained AML staff.

Dow Jones Risk & Compliance and ACAMS, 2016

Five arrested over complicity in $81 million cyber heist

It is reported that the Philippines' anti-money laundering watchdog, the Anti-Money Laundering Council, commenced criminal proceedings against five RCBC (Rizal Commercial Banking Corp) bank officials for allegedly 'wilfully' ignoring events leading to a $81 million cyber heist.

The five bank officials, as well as the former treasurer of RCBC, are alleged to have ignored suspicious activity which allowed millions of dollars to be stolen from Bangladesh's central bank last February.

The International Business Times, 23 November 2016

Revisions proposed to money laundering guidelines for correspondent banks

The Basel Committee on Banking Supervision is to consult with stakeholders regarding proposed revisions to risk management guidelines surrounding money laundering and terrorist financing. Current guidelines do not purportedly provide enough clarity and the Committee want to address concerns that correspondent banking relationships will decline if no further clarification is made.

Basel Committee on Banking Supervision, 23 November 2016

Cyber Crime

National Lottery accounts hacked

Camelot announced on Wednesday that it believed the accounts of 26,500 National Lottery players have been hacked by cyber criminals.

Details accessed by the criminals may include the names, dates of birth, contact details, final four digits of card numbers and card expiry dates recorded against an account. It is understood that no money has been placed or withdrawn from affected accounts.

It is reported that Camelot are suspending the affected accounts pending a compulsory password reset and are working closely with the National Crime Agency to resolve the matter.

The Telegraph, 30 November 2016


Russian ships reportedly delivering jet fuel to Syria in breach of EU sanctions

It is reported that at least two ships bearing Russian flags have contravened EU sanctions by crossing EU waters to deliver fuel to Syria, allegedly for use in Russian air strikes against Syrian jihadists in support of the Syrian government.

Reuters, 22 November 2016

Iranian Banks required to improve compliance policies to meet international standards after sanctions lifted

It has been reported that Iranian banks have been instructed to improve and upgrade transparency and compliance policies by the Iranian Central Bank in order to meet international standards.

Bloomberg, 21 November 2016

Health and Safety

£25,000 fine for castings manufacturer after employee injured

Amtek Aluminium Castings (Witham) Limited has been fined £250,000 after a worker sustained injuries whilst working on an unguarded drilling machine.

He suffered injuries to his hand which required a skin graft and was off work for two months.

The company pleaded guilty to breaching Section 2(1) of the Health and Safety at Work etc Act 1974, and was fined £250,000 plus costs of £12,632.92.

SHP Online, 22 November 2016

Manufacturer fined £800,000 after three employees developed lung conditions

A manufacturer of ejector seats has been fined £800,000 after three workers developed debilitating lung conditions.

The operators developed extrinsic allergic alveolitis after many years of exposure to the mist of working metal fluid over at least a three year period. One worker has been so severely affected they have become virtually paralysed by the illness, another will never be able to work with metal working fluids again and the third must have special measures in place to ensure he never comes into contact with the substance.

Martin Baker Aircraft Company Limited pleaded guilty to breaching Section 2 (1) of the Health and Safety at Work etc. Act 1974 and Regulation 6(1) of the Control of Substances Hazardous to Health Regulations 2002 (as amended) (COSHH) and were fined £800,000 plus £36,912.36 costs.

SHP Online, 28 November 2016

NHS Trust fined after patient death

Norfolk and Suffolk NHS Foundation Trust has been fined £366,000 after the death of a patient on a specialist dementia ward.

Mrs Joan Darnell, age 78, had been admitted as a patient to the Julian Hospital, in September 2014 to a specialist ward for patients suffering with dementia. On the 16 October Mrs Darnell was reported missing and was found face-down in a bath full of water in one of the bathrooms on the ward.

Norfolk and Suffolk NHS Foundation pleaded guilty to breaching Section 3(1) of the Health and Safety at Work etc. Act 1974 and fined £366,000 and ordered to pay costs of £12,888.48.

Health and Safety Executive, 28 November 2016

Key Contacts

Nichola Peters

Nichola Peters

Partner, Global Investigations

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