Law and the Justice System

A disgraced solicitor who took part in Britain's biggest ever tax fraud is yet to settle a £3million confiscation order, a court heard.

https://www.msn.com/en-gb/money/other/disgraced-solicitor-rodney-whiston-dew-yet-to-pay-back-any-of-%C2%A33m-after-britains-biggest-tax-fraud/ar-AA13EJ8C

In Short

The Situation: Following years of lobbying by senior prosecutors and other commentators, the UK government seems set to introduce an offence of a corporate failing to prevent economic crime.

The Result: With the exception of bribery and tax offences, a corporate can currently be held criminally liable only for economic crimes committed with the guilty knowledge of those who are the directing mind and will of the company (the "identification principle"). The latest government proposals suggest such liability may be expanded such that corporations may be liable for other economic offences committed for the benefit of the company, including fraud.

Looking Ahead: Such a development would increase the risk of successful prosecution of corporates in circumstances where employees and others have committed offences with the intention of benefiting the company or its clients. Corporates will need to ensure they have sufficient internal systems in place to mitigate the risk and potential liability arising in such circumstances.

The National Crime Agency estimates that money laundering costs the UK more than £100 billion annually. The Economic Crime and Corporate Transparency Bill is the second part of a legislative package introduced by the UK government to tackle economic crime. Its stated key objectives are to (i) prevent organised criminals from using UK companies to abuse the UK’s open economy, (ii) strengthen the UK’s broader response to economic crime, in particular by giving law enforcement new powers to seize cryptoassets and enable businesses in the financial sector to share information to prevent and detect economic crime, and (iii) improve the reliability of the data on Companies House so that this data can inform business transactions and lending decisions. The government intends to invest a further £63 million up to 2024–2025 in Companies House to support its transformation from a register to a regulator.

https://www.sidley.com/en/insights/newsupdates/2022/10/understanding-the-uk-economic-crime-and-corporate-transparency-bill

Specialist fraud courts are needed to combat the “epidemic” of scamming in Britain, say MPs on the Commons Justice Committee.

https://www.msn.com/en-gb/news/uknews/mps-call-for-economic-crime-courts-as-just-1-in-700-fraud-cases-are-prosecuted/ar-AA1351y3

Justice select committee calls Action Fraud ‘unfit for purpose’ as number of victims rises 25% in two years

https://www.theguardian.com/uk-news/2022/oct/18/uk-justice-system-ill-equipped-for-rise-in-say-mps

10 organisations including Which? and UK Finance have called on the UK Government to do more to protect from threat actors online.

https://www.digit.fyi/new-coalition-online-fraud-protections/

Proceeds of crime proceedings have begun against mail interception fraudsters who targeted mainly rural addresses across the North East.

https://www.thenorthernecho.co.uk/news/22967523.members-mail-fraud-gang-targeted-rural-properties-across-north-east/

Wide ranging reforms designed to bear down on kleptocrats, organised criminals and terrorists abusing the UK’s open economy have been introduced into Parliament.

https://www.gov.uk/government/news/new-crackdown-on-fraud-and-money-laundering-to-protect-uk-economy

Corporate crime reform is never far from the headlines, and interest in this contentious issue has once again reignited.

https://www.ftadviser.com/regulation/2022/09/21/fraud-reform-is-needed-urgently/

It is a criminal offence in the UK if a business fails to prevent its employees or any person associated with it from facilitating tax evasion.

https://www.pinsentmasons.com/out-law/guides/corporate-criminal-offences-of-failing-to-prevent-the-facilitation-of-tax-evasion-