Read on for the latest news and updates in bribery and corruption; money laundering; fraud; health and safety and more...

Bribery and Corruption

Corruption queries continue around Tokyo Olympics bid

New allegations have been raised about Tokyo's bid for the 2020 Olympics after a Japanese businessman told Reuters that he lobbied International Olympic Committee figures including Lamine Diack, the former head of athletics' governing body the IAAF, and provided gifts of watches and cameras. The businessman was allegedly paid $8.2m by Tokyo's bid committee. The allegations have arisen as French prosecutors investigate how Tokyo was chosen to host the 2020 Olympics.

Mr Diack is currently awaiting trial in France on corruption charges relating to a number of sporting events. He denies all allegations of bribery.

Reuters, 31 March 2020

Money Laundering

FATF President releases statement on COVID-19 and measures to combat illicit financing

The Financial Action Task Force (FATF) has highlighted the need for vigilance during the COVID-19 pandemic, as criminals and terrorists may seek to exploit gaps in national anti-money laundering and counter-financing of terrorism (AML/CFT) systems while they assume resources are focused elsewhere.

The FATF has also encouraged the use of financial technology and digital customer on-boarding to manage some of the issues presented by COVID-19, and for countries and financial service providers to explore using simplified due diligence measures where appropriate. Countries and businesses should also apply a risk-based approach to managing AML/CFT risks to ensure that the activities of legitimate non-profit organisations are not unnecessarily harmed. The FATF is continuing to work with a number of bodies to co-ordinate policy responses and provide guidance on AML/CFT issues during the crisis.

FATF, 1 April 2020

Fraud

Interim CPS Charging Protocol tells prosecutors to delay charges in relation to serious fraud and serious organised crime

The Crown Prosecution Service (CPS) and the National Police Chief's Council (NPCC) have issued an interim charging protocol advising prosecutors how certain offences should be considered and progressed in light of the COVID-19 outbreak. Courts are currently unable to start any new jury or summary trials, and the majority of trials have had to be paused due to issues caused by social-distancing.

The interim protocol categorises serious fraud and serious organised crime as lower priority, noting that they are "Likely to clog up the court system if charged and actioned at this stage". The guidance notes that it makes sense to delay the start of proceedings in cases which require large, complex investigations, and suggests that a virtual specialist fraud court could be set up to manage such cases.

CPS, 31 March 2020

Europol publishes report on COVID-19 related scams

Europol has published a report setting out the EU criminal landscape during the COVID-19 pandemic. It has highlighted four main areas of crime: cybercrime, fraud, counterfeit and substandard goods and organised property crime.

Europol expects the number of cyber-attacks against organisations to increase, particularly as a greater number of employees connect to their organisations' systems remotely. Fraud schemes capitalising on people's anxiety over the pandemic are also expected to emerge, and counterfeiting of health-related products such as surgical masks has already increased significantly since the start of the crisis. Criminals are also expected to target commercial premises and medical facilities for organised burglaries.  

Europol, 27 March 2020

Government guide on fraud control in emergency management during the COVID-19 pandemic

The Government has issued guidance for leaders and fraud experts in government bodies and local authorities that are administering emergency programmes on behalf of the UK Government. The guidance highlights some of the key fraud threats to the public sector during the COVID-19 crisis, and contains a list of principles that should be applied to help prevent fraud.

Gov.uk, 26 March 2020

FCA

FCA warning on COVID-19 scams

The Financial Conduct Authority (FCA) has published advice for consumers on how to avoid COVID-19 related scams in the financial services sector over the coming months, as scammers look to exploit financial concerns, consumers' wishes to help good causes and uncertainty around the stock market.

Consumers should be wary of tactics including companies asking for upfront fees when applying for loans or credit, and of scammers advising individuals to invest or transfer existing investments into non-standard investments.

FCA, 26 March 2020

Sanctions

Standard Chartered fined £20.47m for breaching financial sanctions

UK sanctions regulator, the Office of Financial Sanctions Implementation (OFSI), has imposed monetary penalties totalling £20.47m on Standard Chartered Bank for breaching EU financial sanctions regulations prohibiting loans to certain Russian financial institutions.

Standard Chartered Bank made a series of loans to a majority-held subsidiary of Sberbank of Russia between 2015 and 2018, a number of which did not fall within any exemption to the EU regulation and which were therefore in breach of the regulation. Standard Chartered Bank disclosed the suspected breaches of financial sanctions to OFSI, carried out an internal investigation and cooperated with OFSI's investigation, resulting in OFSI reducing its penalty by 30%.

Gov.uk, 31 March 2020

US offers to relax sanctions against Venezuela if power-sharing deal is agreed

The US has offered to lift severe sanctions in place against Venezuela if its leaders agree to a "Democratic Transition Framework" that would involve President Nicolás Maduro and his opponent Juan Guaidó stepping aside and a new transitional government being formed. The framework proposes a "sequenced exit path" from the severe US sanctions, including sanctions on the current leadership and broader sanctions in place in relation to the country's oil business. All sanctions would be lifted after free elections had taken place.

The proposal comes only days after the US charged the President and various top level government officials with drug trafficking, corruption and money laundering offences.

BBC, 31 March 2020

Environmental

Director of a waste and recycling company sentenced for breach of waste permit

A director of recycling firm Shows Waste Management Ltd has been ordered to pay £10,000 in prosecution costs and to undertake 80 hours of unpaid work pursuant to a Community Order, following persistent breaches of the company's waste permit. Between summer 2015 and summer 2016 the company stored excessive amounts of inappropriate waste, causing an adverse affect on nearby neighbours and businesses.

Gov.uk, 25 March 2020

Health & Safety

Coronavirus – Another Brick in the Wall?

Addleshaw Goddard has published a note summarising the latest health and safety guidance from the UK Government and Public Health England for the construction industry on the COVID-19 pandemic, and the Site Operating Procedures produced by Build UK and the Construction Leadership Council. The note is up to date as at 31 March 2020.

AG, 1 April 2020

Tayside Health Board fined £120,000 following death of three patients

Tayside Health Board has been fined for health and safety breaches after three patients took their own lives using ligature points at the general adult psychiatry ward of the Murray Royal Hospital in Perth, Scotland.

The HSE investigation found that Tayside Health Board failed to assess, manage and control the risk of severe injury and death associated with ligature anchor points and that a number of private bedrooms contained ligature anchor points which could have been removed. The Board also failed to communicate the risks to staff who monitored the patients. Tayside Health Board of Ninewells Hospital pleaded guilty to breaching Sections 3(1) and Section 33(1)(a) of the Health and Safety at Work Act and was fined £120,000.

SHP, 31 March 2020