Bribery, fraud and anti-money laundering | UK Regulatory Outlook September 2024

Parliamentary update on failure to prevent fraud guidance

On 12 September 2024, Lord Hanson, minister of state for the Home Office, provided an update on the publication of the guidance that must be issued by the government before the new failure to prevent fraud offence under the Economic Crime and Corporate Transparency Act comes into effect.

In response to a question asked in the House of Lords by Lord Garnier, Lord Hanson committed to reviewing the work of the previous government in relation to the delayed guidance with a view to expediting the process as a matter of urgency.

It therefore seems possible that publication of the guidance will be subject to further delay, and as such, the offence may now not come into force until the middle of 2025. We will continue to monitor the progress of the guidance and publish updates on the failure to prevent fraud offence.

High Court rules that England is appropriate forum in cross-border conspiracy claim

The High Court held that England was the appropriate forum for conspiracy and related claims against a Monaco-based lawyer in relation to an alleged breach of a worldwide freezing order and evasion of an English judgment by judgment debtor.

To find out more, please see our Insight. For businesses and individuals looking to navigate issues around fraud, enforcement and asset recovery, see our relaunched Fraud, Asset Tracing and Enforcement Update.

FCA emphasises collaboration and a collective effort to address fraud

On 5 September 2024, Andrea Bowe, director of the specialist directorate at the Financial Conduct Authority (FCA), delivered a speech at the Westminster Legal Policy Forum. Ms Bowe outlined the regulator's fraud strategy, stressing that collaboration between public and private sectors with regulators is essential to tackling the issue of fraud.

The FCA urges firms to adopt a collaborative approach to the sharing of information, particularly on suspected mule activity, to disrupt criminal operations and reduce the flow of fraudulent funds.

FCA reinforces commitment to tackle UK financial crime

On 5 September, Sarah Pritchard, an FCA executive director with responsibility for market integrity, delivered a speech at the Financial Crime Summit. Ms Pritchard outlined the FCA's  approach to tackling financial crime, reaffirming that it remains a top priority in its enforcement strategy as a key commitment in the regulator's three-year plan.

Our experts take a look at the next steps for the financial services industry following the guidance in our latest Insight. It is also anticipated that the FCA and other regulators will be keen to utilise the new offences introduced in the Economic Crime and Corporate Transparency Act 2023, as discussed in our separate Insight.