This article examines the World Bank Group's (WBG's) recently published third Sanctions System Annual Report FY2020, which covers 1 July 2019 to 30 June 2020. The report provides a detailed look at the recent activities of the three units of the WBG's sanctions system: the Integrity Vice Presidency (INT), the Office of Suspension of Debarment and the Sanctions Board. It also provides important insight into INT's priorities for fiscal year 2021.
Following a number of significant public scandals which stemmed from regulatory and compliance failures, the Consumer Affairs Agency launched an investigation which ultimately led to the creation of the whistleblowing compliance management system, a certification regime for corporate whistleblowing systems. This article provides an overview of the regime and analyses the success of the self-declaration of conformity system.
The Lagos Division of the Court of Appeal recently confirmed the constitutionality and validity of the Lagos High Court's granting of a proprietary injunction along with orders directing the defendants to swear to and file affidavits stating the location, nature and value of all assets that represented or were derived from the proceeds or fruits of certain transactions. The court pointed out that the rights guaranteed in the Constitution are not absolute and can be curtailed to protect the rights of other persons.
This article looks at the government's introduction of new legislation in relation to beneficial ownership and controlling interests requirements. This new legislation, the Financial Services (Disclosure and Provision of Information) (Jersey) Law 202-, aims to implement in Jersey the requirements set out by the Financial Action Task Force, the intergovernmental body that sets standards for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.
When the United States began grappling with COVID-19 in March 2020, the US Securities and Exchange Commission (SEC) Division of Enforcement acted swiftly to make clear to market participants that it was ramping up its efforts to identify and prevent fraud in the wake of the pandemic. Approximately seven months later, statistics released by the SEC bear this out.
The federal government recently announced its intention to establish yet another anti-corruption agency. Given the ongoing accounting and management controversies surrounding assets which have reportedly been recovered by the existing agencies, there is reason to view this announcement with a degree of suspicion. If there is one thing that Nigeria does not need, it is another bureaucratic organ dealing with these matters.
In July 2020 the Federal High Court ordered the interim forfeiture of assets allegedly belonging to former Nigerian Social Insurance Trust Fund (NSITF) Chair Ngozi Olejeme. Despite this recovery step, the question remains as to why it took the Economic and Financial Crimes Commission so long to discover Olejeme's alleged connection to these particular assets. Since she left office, the NSITF has allegedly been deprived of more than N69 billion that could have been invested for the benefit of insured employees.
The plea bargaining system, which came into effect in 2018, allows suspects and defendants to enter into negotiations with prosecutors whereby evidence of others' criminal conduct can be provided in return for criminal charges being reduced or dropped. This article examines Japan's first bribery conviction involving plea bargaining, which has been successfully appealed to the Tokyo High Court. This case is significant because it will likely influence how public prosecutors use the plea bargaining system in future.
Individual prosecutions under the Foreign Corrupt Practices Act (FCPA) have markedly increased over the past five years. This increase in case law will help to better define local, regional and international enforcement. In addition, more FCPA case law shedding clarity on open issues will be a boon to lawyers, judges and scholars seeking to understand the contours of a complex statute – the elucidation of which has previously been almost the sole province of enforcers.
In June 2019 the Economic and Financial Crimes Commission (EFCC), as part of its investigation into the affairs of a former state governor, reported that it had frozen a number of bank accounts alleged to belong to the former governor which contained suspected public funds. In 2020 the EFCC reported that, to date, a total of N7.9 billion had been recovered from these accounts and more than N5.7 billion had been returned to the state government.
In January 2020 the Bailiwick published its national risk assessment (NRA), which identifies jurisdiction-wide and systemic risks to which its financial system is deemed particularly vulnerable. Individual specified businesses were initially given until the end of May 2020 to update their business risk assessments in light of the NRA, but some timeframes have been extended in response to the COVID-19 pandemic. This article examines the contents of the NRA and the implications for specified businesses in the Bailiwick.
Nigerian entrepreneur Obinwanne Okeke has pleaded guilty to a computer-based intrusion fraud scheme. More than $11 million is said to have been traced to the ring, and it has been claimed that Okeke used proceeds from these activities to establish legitimate business enterprises in Nigeria. This follows from reports in 2019 that the Federal High Court in Lagos ordered that N280,500,000 in two bank accounts in Okeke's name be forfeited to the Nigerian government.
The US Department of Justice (DOJ) has updated its guidance on the Evaluation of Corporate Compliance Programmes, providing increased clarity on some of the key questions that prosecutors ask in assessing the adequacy of corporate compliance programmes when making charging, sentencing and plea and settlement decisions. The guidance helps companies to proactively create or enhance their compliance programmes and effectively advocate before the DOJ in criminal investigations.
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.
Companies in Japan that operate in sectors which require permits or licences (eg, the aviation, banking, pharmaceutical, construction, outsourcing and waste disposal sectors) risk having their licences revoked if their officers or certain employees receive a criminal conviction. This article explains the circumstances in which a company's licence may be revoked and sets out certain measures that companies can take to protect themselves against this risk.
Insider fraud is a problem that persists at all levels of society, irrespective of whether the entity has commercial or altruistic motives. This begs the question of what internal controls and procedures employers in any sector can implement to reduce the risk of insider fraud. This article outlines five steps which could significantly reduce the risk for businesses of any size or type.
A recent high-profile theft of hard drives containing sensitive personal data has highlighted the need for Japan-based companies to ensure that their cybersecurity measures include processes for disposing of personal data that has been entrusted to them and reviewing their security controls regarding business partners who may come into contact with personal data. The case involved an employee at an IP recycling company who stole nearly 4,000 data storage devices that were destined for disposal.
The year 2019 was a busy one for Turkey with regard to anti-corruption and compliance matters. This article explores the developments from both a national and an international perspective. Among other things, the European Commission published its Turkey 2019 Report, the Organisation for Economic Cooperation and Development stated that it would establish a centre in Istanbul and Turkey introduced two new trial procedures to the criminal justice system.
Under Swiss criminal law, criminal offences committed within a corporation during the course of its commercial activities may result in the corporation's direct criminal liability if the offence cannot be allocated to a specific individual within the corporation due to the corporation's deficient organisation. The Office of the Attorney General recently convicted a commodity trader of failing to take all due organisational measures to prevent corruption by its employees and agents and fined it Sfr94 million.
The Asset Tracing, Recovery and Management Regulations 2019 recently came into effect, replacing the existing Proceeds of Crime Regulation 2012. The regulations set out procedures for all law enforcement and anti-corruption agencies – which are supervised by the Attorney General's Office – to ensure the effective coordination of the investigation of illegally acquired assets and the proceeds of crime, among other things.