CCFlash

1. Apple challenges UK Watchdog's Investigation

Apple has appealed a recent decision of the United Kingdom's competition enforcement arm to investigate the tech giant's control over the mobile browser market and distribution of cloud gaming services, claiming that the British agency failed to meet legal requirements to launch the probe. - Apple has appealed a recent decision of the United Kingdom's competition enforcement arm to investigate the tech giant's control over the mobile browser market and distribution of cloud gaming services, claiming that the British agency failed to meet legal requirements to launch the probe. According to a Friday notice from the Competition Appeal Tribunal, Apple submitted on Wednesday an application for review seeking the reversal of the Competition and Market Authority's decision, along with a statement that the investigation is invalid and has no legal effect. See Law 360.

2. European Parliament vote to widen the scope of proposed regulation designed to prevent the misuse of shell companies and fight tax evasion and avoidance

The parliament adopted a report by its Committee on Economic and Monetary Affairs that suggested amendments to “Unshell,” a proposed directive that introduces new criteria to identify entities in the European Union that are solely used to obtain tax advantages. The amended version lowers the thresholds below which companies are exempt from the reporting requirements, and further details penalties for entities that fail to comply with the new regulation, including those with zero or low income. More information can be found here.

3. NCA publishes guidance note on SARs online portal

The National Crime Agency (NCA) have published an updated version of the Suspicious Activity Reports (SARs) Online User Guidance note from the United Kingdom Financial Intelligence Unit (UKFIU). The guidance note provides an overview of the SAR Online registration process, outlines the steps required to submit SARs to the NCA and aims to assist users of the SAR Online portal in submitting reports in line with the SARs regime. See here.

4. Tackling corruption in the EU: European Commission prepares new Directive

The European Commission, on 20 January 2023, adopted a Call for Evidence with the aim of preparing a new Directive which would ensure that all forms of corruption are criminalised in all EU member states, that legal persons may also be held responsible for such offences, and that these offences incur effective, proportionate and dissuasive penalties. The new Directive will update the current EU framework on corruption and include measures to prevent corruption and facilitate cross-border co-operation as required by the United Nations Convention Against Corruption (UNCAC), making these international standards binding in the EU. See here.

5. Hot wallets, travel rule implementation and regulatory scrutiny multiply crytos' financial crime compliance challenges

Money laundering risks posed by hot wallets, travel rule implementation and heightened regulatory scrutiny will multiply crypto firms' financial crime compliance challenges this year. Crypto firms' implosions emboldened regulators to voice the view crypto's value is negative being used primarily for fraud, tax evasion and money laundering. That view will harden with a move by U.S. authorities to arrest Anatoly Legkodymov, the founder and majority owner of Hong Kong-registered cryptocurrency exchange Bitzlato Ltd, for allegedly running an unlicensed money transmitting business that processed more than $1 billion in illicit funds. See here.

6. SFO targets assets of alleged Sarclad middleman

The Serious Fraud Office is looking to seize a UK property linked to a Chinese sales agent accused of helping UK metals company Sarclad win overseas contracts through bribery. The agency is bringing an asset forfeiture claim against a person who GIR understands is the daughter of Guang Jiang, an alleged co-conspirator of three former Sarclad executives who were acquitted of bribery charges in 2019. See here.

7. Government confirms introduction of failure to prevent fraud offence

During the Commons Report Stage of the Economic Crime and Corporate Transparency Bill (ECCT Bill) on 25 January, Security Minister Tom Tugendhat MP confirmed the Government’s intention to bring forward a failure to prevent fraud offence in the ECCT Bill when it progresses to the House of Lords. John Binns, Partner at BCL, Quinton Newcomb, Partner at Fieldfisher, Neil Swift, Partner at Peters & Peters, and Sam Tate, Partner at RPC, have commented on this significant development. The Minister’s assurance at the despatch box follows a proposed amendment by former Lord Chancellor Sir Robert Buckland KBE KC MP to include a failure to prevent fraud offence in the ECCT Bill. In light of the Minister’s commitment to address the need for a failure to prevent fraud offence in the Lords, Mr Buckland’s amendment was not pressed to a vote. See here.

8. FCA commences criminal proceedings for insider dealing and money laundering

The FCA has announced that it has commenced criminal proceedings against five individuals for conspiracy to commit insider dealing and money laundering. On 25 January 2023, the FCA published a press release announcing that it has commenced criminal proceedings against five individuals for conspiracy to commit insider dealing and money laundering. The insider dealing prosecution relates to the defendants' activities between 17 December 2019 and 25 March 2021. The FCA alleges that one of the defendants used inside information that he accessed as an analyst at an authorised firm to enable profitable trading in 49 companies through accounts held by the other defendants. The defendants used contracts for difference (CFDs), betting that the value of shares would go down after announcements relating to the companies and realising profits of approximately £1.5 million. See here.

9. Supreme Court rejects appeals by ex-Deutsche Bank traders convicted of 'spoofing'

The U.S. Supreme Court on Monday turned away appeals by two former Deutsche Bank AG commodities traders convicted of manipulating precious metals prices by placing "spoof" orders. The court denied petitions by James Vorley and Cedric Chanu, who were each sentenced to just over a year in prison after being found guilty of wire fraud for spoofing, or placing orders with the intent to cancel them before trades are executed. See here.

10. OFAC has issued General Licence (GL) 21B "Authorising Limited Safety and Environmental Transactions Involving Certain Vessels" under its Global Terrorism Sanctions Regulations

The GL authorises until 13 April 2023 all transactions that are ordinarily incident and necessary to the following safety and environmental activities involving certain US-sanctioned people, entities or vessels, as listed in the GL:

• the safe docking and anchoring of any of the blocked vessels listed in the GL in port;
• the preservation of the health or safety of the crew of any of the blocked vessels; and
• emergency repairs of any of the blocked vessels or environmental mitigation or protection activities relating to any of the blocked vessels. Please see here for more information.