White Collar Crime updates

Guernsey

Refusal of consent under AML reporting regime: Royal Court weighs in
Ogier
  • Guernsey
  • 20 August 2018

The Financial Intelligence Service's recent refusal to consent to a proposed transaction under Guernsey's anti-money laundering reporting regime has resulted in the Royal Court deciding its first private law action between the person claiming the asset and the financial institution holding it. The decision clarifies the legal framework for determining the source of funds, which will be highly relevant to all regulated entities in Guernsey.


India

Retrospective application of Prevention of Money Laundering Act
  • India
  • 24 July 2017

The Karnataka High Court recently issued a judgment which dealt with the retrospective application of the Prevention of Money Laundering Act 2002. The court held that a person cannot be tried for an offence under the act for the period when the offence was not inserted in the schedule of offences under the act. This would deny the writ petitioner the protection offered by Article 20(1) of the Constitution.


Indonesia

Anti-corruption update: some encouragement for whistleblowers and first-ever prosecution of corporation
Ali Budiardjo, Nugroho, Reksodiputro
  • Indonesia
  • 24 December 2018

A number of anti-corruption developments took place in Indonesia in 2018. For example, the Government Regulation on Public Participation in the Prevention and Suppression of Corruption was issued in order to incentivise more whistleblowers to come forward and encourage public participation in the fight against corruption. Further, the Corruption Eradication Commission brought its first-ever prosecution against a corporation.


Japan

Contributed by Nagashima Ohno & Tsunematsu
Whistleblowing certification regime launched
  • Japan
  • 13 May 2019

Over the past decade, a number of significant regulatory and compliance issues have affected large multinationals based in Japan. As such, the Consumer Affairs Agency recently created a certification regime for corporate whistleblowing systems, which is designed to incentivise businesses to voluntarily enhance their own whistleblowing systems and thereby gain the trust of various stakeholders, including shareholders, counterparties and consumers.

Heightened sensitivity in Japan over virtual currencies
  • Japan
  • 01 October 2018

In 2017, following consultations with representatives of the virtual currency (VC) industry, the Act on Payment and Settlement and the Act on the Prevention of Transfer of Criminal Proceeds were amended to require operators of VC exchange businesses to register with the Japanese Financial Services Agency (JFSA). Notably, the amendments reflect the JFSA's desire to implement a risk-based approach with respect to anti-money laundering and terrorist financing.

Are lead managers liable for material misstatements in IPO disclosure documents?
  • Japan
  • 16 July 2018

A recent Tokyo District Court decision was reported to be the first to hold an underwriter liable to investors that purchased shares in a company based on material misstatements in the financial information contained in the statutory disclosure document for a public offering in Japan. However, the Tokyo High Court overturned the district court decision in this regard and concluded that the lead manager was not liable to investors.

Japan Exchange Regulation publishes principles to prevent corporate scandals
  • Japan
  • 04 June 2018

In response to the significant corporate scandals that have come to light in recent years, Japanese authorities and regulators have been working to improve compliance awareness within corporate Japan. The Japan Exchange Regulation (JPX-R) recently published the Principles for Preventing Corporate Scandals, which provide valuable insight into the views of the JPX-R and, by extension, other Japanese regulators.

Are privilege protections coming to Japan?
  • Japan
  • 26 March 2018

The absence of attorney-client privilege protections in Japan means that regulatory investigations must be handled with particular care. Various industry parties have argued that the absence of such protections unfairly damages the interests of companies active in Japan. However, the government has refused to introduce such protections out of concern that they could limit the regulators' broad investigative powers or otherwise adversely affect the Japanese regulatory environment.


Jersey

Reform of civil forfeiture orders
Ogier
  • Jersey
  • 06 August 2018

MONEYVAL's 2015 inspection of Jersey's anti-money laundering regime and its subsequent report issued in May 2016 encouraged Jersey legislators and regulators to actively prosecute more financial crime and, in particular, introduce a non-conviction-based confiscation regime to apply in parallel with the conviction-based system. The Draft Forfeiture of Assets (Civil Proceedings) Jersey Law is a paradigm shift in regulatory approach to achieve the objectives set by MONEYVAL.