Financial and Corporate Crime

This Practice note provides an overview of the money laundering regime that applies to lawyers pursuant to the Money Laundering Regulations 2007 (2007 Regulations). The 2007 Regulations came into force on 15 December 2007 and replace the Money Laundering Regulations 2003 (2003 Regulations). They bring the 2005 Directive on money laundering into effect in the UK. The 2007 Regulations introduce new requirements and vary requirements that were in the 2003 Regulations. In particular, the 2007 Regulations require that: The lawyer is able to identify the beneficial owner of client trusts, companies and partnerships. The lawyer applies customer due diligence measures and monitors client activities according to a risk-based approach, applying less stringent procedures for low risk situations and more stringent procedures in higher risk situations. Training for staff is both regular and covers terrorist financing issues. Lawyers are also to have regard to the Law Society's anti-money laundering practice note published on 6 October 2011, and the Solicitors Regulation Authority's warning cards on money laundering (April 2009), property fraud (April 2009) and bogus law firms and identity theft (March 2012).   Property lawyers should also take account of the joint Land Registry and Law Society practice note on property and registration fraud (September 2010), and the Law Society's note on mortgage fraud (October 2011).

A practice note about the Bribery Act 2010, which received Royal Assent in April 2010 and came into force on 1 July 2011.  The background to the Act is described in Practice note, Bribery: law reform. PLC's materials on the Bribery Act are set out in Bribery Act 2010: toolkit.

In this practice note, Aaron Stephens and Daren Allen, partners in Berwin Leighton Paisner LLP's Financial Services Investigations and Enforcement practice, consider the implications of the Bribery Act 2010 for banks and other financial institutions (including insurance firms, asset management firms, hedge funds and private equity houses), and the practical steps firms should take to comply with the new regime. The Act came into force on 1 July 2011. For a general overview of the Act, see Practice note, Bribery Act 2010, and for information on the background to the Act, see Practice note, Bribery: law reform.

This note looks at how promotional expenses, such as corporate hospitality and gifts, may be dealt with under the Bribery Act 2010.

This note looks at facilitation payments, examining in particular what they are, why the lack of an exemption in the Bribery Act has been controversial, how the SFO plans to enforce the Bribery Act in relation to them and what can be done to prevent them being made. Information is also given on the position the OECD and other countries have taken towards facilitation payments.

This note explains the purpose of a statement of ethics (or anti-corruption statement) and how it might best be used in the context of the Bribery Act 2010, particularly in relation to implementing adequate procedures to prevent bribery and demonstrating a top level commitment to doing so. This note accompanies Standard document, Bribery Act 2010: sample statement of ethics.

A practice note about the reform of the law on bribery in the UK.  This note has now been replaced by a new resource: Practice note, Bribery Act 2010, detailing the Bribery Bill which was introduced into parliament in November 2009 and received Royal Assent as the Bribery Act 2010 in April 2010.

The civil wrong of bribery is concerned with payments made to agents without their principals' knowledge or consent. This note considers the elements of the cause of action of bribery, the implications of a payment being classified as a bribe, the relationship with fiduciary duties, defences and remedies. It also considers the situation where it is the agent who is doing the bribing. It is part of a series of practice notes examining different aspects of commercial fraud.

This practice note considers the mandatory and discretionary exclusion of contractors from competing for public contracts if they have been convicted of bribery or corruption.  The note focuses on: Regulation 23 of the Public Contracts Regulations 2006 (SI 2006/5). The coming into force of the Bribery Act 2010. The potential impact of a conviction under section 7 of the Bribery Act 2010.

In this practice note, Aaron Stephens, a partner, and Rachel Aikens, a senior associate, in Berwin Leighton Paisner LLP's Financial Services Investigations and Enforcements practice, provide a brief guide to the practical issues that lawyers should bear in mind when advising clients in relation to dawn raids carried out by the FCA or PRA. The note outlines the key steps to be taken from the moment a lawyer becomes aware that a client's premises have just been raided by the FCA or the PRA, throughout the raid itself and, finally, once the raid has ended. The note has also been designed so that it can be read as a refresher in the taxi on the way to a client’s premises that have just been raided. 

This practice note contains links to PLC Financial Services' historic financial crime practice notes. Historic practice notes relate to legislation, rules, regulations and/or guidance that are no longer applicable as they have been superseded. They may, however, be of interest if it is necessary to consider the legal or regulatory position at a previous time.

Consideration of the potential conflict between the anti-money laundering (AML) and counter-terrorist financing (CTF) tipping off offences under the Proceeds of Crime Act 2002 (POCA) and the Terrorism Act 2000 (TACT) respectively and the Data Protection Act 1998 (DPA) subject assess request provisions. This note covers the relevant legal provisions and explains how the potential conflict can be managed by financial institutions.

An overview of the OFT's anti-money laundering (AML) regime under the Money Laundering Regulations 2007 (SI 2007/2157) (MLRs). The regime applies to consumer credit lenders carrying on business in the UK who are not authorised under the Financial Services and Markets Act 2000 (FSMA) or supervised by HMRC as a money service business (MSB). Consumer credit lenders that fall within the OFT's regime are known as "consumer credit financial institutions" or "CCFIs". CCFIs have had to comply with AML legislation since 1994. However, until the MLRs came into force on 15 December 2007 CCFIs did not have a statutory supervisor.  The OFT's regime under the MLRs also applies to estate agents, however, they are outside the scope of this note.

An overview on how to comply with the reporting obligations under the Proceeds of Crime Act 2002 (POCA) and the Terrorism  Act 2000 (TACT) relating to suspected money laundering or terrorist financing. It covers: How to identify suspicious activities. The practical steps to be taken when a suspicious activity has been identified. The content of internal and external reports. For more information on the reporting obligations under POCA and TACT, see Practice note, UK money laundering and terrorist financing offences in POCA and TACT .

An overview of the provisions of the Third Money Laundering Directive (2005/60/EC) (known as MLD3,  3MLD, 3AMLD and Third AMLD) which came into force on 15 December 2005. Member states were required to implement the Directive by 15 December 2007. This was achieved in the UK mainly by way of the Money Laundering Regulations 2007 (SI 2007/2157) (MLRs), which came into force on 15 December 2007.

An overview of the money laundering and terrorist financing offences set out in the Proceeds of Crime Act 2002 (POCA) and the Terrorism Act 2000 (TACT) respectively. POCA and TACT form part of the UK's anti-money laundering (AML) and counter-terrorist financing (CTF) regime.