White Collar Crime updates

Brazil

Contributed by Hogan Lovells
What now of the Faustian bargain? Moro's exit and its impact on anti-corruption efforts
  • Brazil
  • 08 June 2020

The resignation of former Operation Car Wash judge and world-renowned anti-corruption crusader Sergio Moro as minister of justice and public safety has sent shockwaves throughout Brazil's political class. Easily the Bolsonaro administration's most recognised and admired cabinet member, Moro's departure via a televised press conference, where he accused the president of trying to interfere in ongoing investigations involving his family members, was likely not how he had envisioned his tenure ending.


Cayman Islands

Q&A on Cayman AML regime: service providers, delegation and risk-based approach
  • Cayman Islands
  • 17 June 2019

The government and the Cayman Islands Monetary Authority are well aware that it is imperative that the Cayman Islands is not only perceived to, but does in fact, play a central role in the global fight against money laundering and terrorist financing. At the same time, there is a deep understanding of the need to remain competitive and commercial. This article addresses a number of key questions concerning the 2018 amendments to Cayman's anti-money laundering regime.

AHAB v Saad – importance of a particularised and principled tracing claim
  • Cayman Islands
  • 23 July 2018

In Ahmad Hamad Algosaibi & Brothers Company (AHAB) v Saad, the Grand Court found that AHAB's claims, which attempted to trace its funds into the hands of defendant SIFCO5, were "unparticularised and unprincipled". Further, AHAB was unsuccessful in establishing that funds representing traceable proceeds from the Money Exchange reached SIFCO5 or in articulating any discernible cause of action against SIFCO5 in respect of such funds.

Grand Court dismisses multibillion-dollar fraud claims in one of largest Ponzi schemes in history
  • Cayman Islands
  • 09 July 2018

In a landmark ruling, the Grand Court emphatically dismissed a multibillion-dollar claim in a case involving allegations of fraud arising from one of the largest corporate collapses of the financial crisis. The case has showcased the court's ability to manage high-profile large-scale litigation, demonstrating especially the quality of the Cayman Islands judiciary and the court's ability to use cutting-edge technology, as well as the resources and flexibility to manage a year-long, multi-jurisdictional trial.


China

Authorities ramp up enforcement of foreign companies' non-compliance with national anti-bribery laws
AnJie Law Firm
  • China
  • 07 October 2019

The prosecution of commercial bribery has once again become a key issue following the amendment of the Anti-unfair Competition Act. With the restructuring of the act's anti-bribery provision – which dovetailed with the national anti-corruption movement – the government appears to be cracking down on unlawful commercial activities by both domestic and foreign companies. To guide companies in this regard, this article provides an intuitive roadmap to the Chinese anti-bribery regulatory scheme.

Enhanced regulation of illegal payment and settlement business and FX trading
  • China
  • 15 April 2019

Criminal activities such as illegal payment and settlement business and FX trading have become increasingly rampant in recent years. Although these activities have been classified as business crimes in various laws and regulations, the applicable penalties have been unclear. However, new interpretations of the Supreme People's Court and the Supreme People's Procuratorate set out the applicable convictions and penalties for illegal business operations involving FX trading and payment and settlement business.


France

France tightens rules on state immunity
Hughes Hubbard & Reed
  • France
  • 12 November 2018

Articles 59 and 60 of Law 2016-1691 (the Sapin II Law) on transparency, anti-corruption and the modernisation of economic life established a system of immunity from the execution of civil judgments on property in France which is owned by foreign states. The main purpose of this aspect of the Sapin II Law is to limit the risk of litigation arising from seizures or attachments of property belonging to foreign states.


Germany

Criminal penalties for tax fraud cannot apply to breach of trust allegations
  • Germany
  • 24 September 2018

According to the Federal Court of Justice's established case law, the penalty for tax evasion of more than €1 million should generally be imprisonment rather than a suspended sentence. However, the court recently ruled that these principles cannot apply to breach of trust allegations. The decision has significant implications for white collar crime and compliance.

Seizure of documents relating to internal investigations – legislative changes ahead?
  • Germany
  • 03 September 2018

A recent Federal Constitutional Court decision has clarified whether documents relating to internal investigations can be regarded as defence documents. Against the hope of companies and law firms, the court rejected the general prohibition on the seizure of such documents; however, it indicated that such a prohibition should always be determined on a case-by-case basis.

Corporate penalties and internal investigations
  • Germany
  • 18 June 2018

The federal government plans to create new corporate penalties and abandon the discretionary principle which has thus far applied in corporate prosecutions. Further, the upper limit of penalties will be significantly increased. At the same time, the government aims to establish legal requirements for internal investigations that provide an incentive for investigation support.