Included in this issue: China anti-corruption sweep snares another executive in the steel sector | Bank of England Quarterly Bulletin| NCA to target more than 20 of the world's most corrupt politicians involved in money laundering | Fifteen suspects charged with £12m fraud and money laundering against public and private bodies | World Economic Forum calls for a rethink of anti money-laundering rules | Safe Interenvios v Liberbank, Banco de Sabadell and Banco Bilbao Vizcaya Argentaria | Commodities Trading Thematic (CT) Review | Libor scandal | Jail time for fraudster who conned Barclays out of £9 million to spend on luxury cars | David Green speech at the 33rd Cambridge Economic Crime Symposium | Flash crash trader e-mails show spoofing strategy | MtGox bitcoin chief Mark Karpeles charged in Japan | Individual Accountability for Corporate Wrongdoing | Hugo Boss fined £1.2 million over death of four year old killed by falling mirror

Bribery and Corruption

China anti-corruption sweep snares another executive in the steel sector

The former chairman of Wuhan Iron and Steel Corp., Deng Qilin, is being investigated for "serious violations of discipline and law". China Compliance Digest

Money Laundering

Bank of England Quarterly Bulletin- How has cash usage evolved in recent decades? What might drive demand in the future?

The Bank of England states that the evidence available indicates that no more than half of Bank of England notes in circulation are likely to be held for use within the domestic economy for legitimate purposes. This includes cash used for transactions and for ‘hoarding’.

The remainder is likely to be held overseas or for use in the shadow economy. However, given the untraceable nature of cash, it is not possible to determine precisely how much is held in each market. 

Bank of England, 15 September 2015

NCA to target more than 20 of the world's most corrupt politicians involved in money laundering

The NCA's International Corruption Unit to target money laundering through the UK being committed by more than 20 of the world's most corrupt politicians. 

The Independent, 4 September 2015

Fifteen suspects charged with £12m fraud and money laundering against public and private bodies

The defendants have allegedly committed a diversion fraud by contacting public bodies, posing as legitimate construction companies and requesting that the bank details of those companies are changed to an account owned or controlled by the Defendants. 

CPS News Brief, 3 September 2015

World Economic Forum calls for a rethink of anti money-laundering rules

The think-tank, WEF, has called for regulators and central bankers to rethink how rules are applied to stop extremist financing and money laundering. 

Reuters, 28 August 2015

Safe Interenvios v Liberbank, Banco de Sabadell and Banco Bilbao Vizcaya Argentaria

The ECJ was asked to look at the application of Directive 2005/06/EC (3MLD) and whether it precludes a Member State from authorising a credit institution from applying customer due diligence to a payment institution.

The decision essentially found that the 3MLD requires enhanced due diligence measures to be applied where there is a suspicion of money laundering or terrorist financing. This applies even where the customer is themselves a covered entity. 

European Court of Justice opinion, 3 September 2015

Financial Regulation

Market Watch: Newsletter on market conduct and transaction reporting Issues: Commodities Trading Thematic (CT) Review

The FCA carried out a review of 12 firms, including brokers, interdealer brokers and commodities trading firms.

Many firms showed complacency towards the risk of market abuse and the report highlights concerns that some firms believe that commodity markets are "too deep, too liquid, with too many participants" to be manipulated. 

Financial Conduct Authority, 3 September 2015

Fraud

Libor scandal: Tom Hayes begins appeal against 14-year prison sentence

Tom Hayes, the first person to be found guilty of rigging Libor rates, has begun an appeal against his conviction and prison sentence. 

The Telegraph, 15 September 2015

Jail time for fraudster who conned Barclays out of £9 million to spend on luxury cars

A businessman who falsified invoices from major supermarket chains to enable him to defraud Barclays Bank out of almost £9 million has been jailed for three and a half years. 

City of London Police, 2 September 2015

David Green speech at the 33rd Cambridge Economic Crime Symposium

David Green QC gives his fourth report to the 33rd Cambridge Economic Crime Symposium.

Among other things, Mr Green QC touches on the SFO's results over the past 12 months, the new investigations it is conducting and Deferred Prosecution Agreements. 

Cambridge Symposium, 7 September 2015

Flash Crash Trader E-Mails Show Spoofing Strategy, U.S. Says

US prosecutors allege that Navinder Singh Sarao attempted to enlist the help of a computer programmer to assist him to produce a system to manipulate stock prices.

Sarao, currently in the U.K., faces a 25 September 2015 extradition hearing in London. 

Bloomberg Business, 3 September 2015

MtGox bitcoin chief Mark Karpeles charged in Japan

The founder of MtGox - once the world's biggest Bitcoin exchange - has been formally charged by prosecutors in Japan with embezzlement amid an investigation into losses of nearly $400 million. Mr Karpeles has also been accused of falsifying data and improperly transferring MtGox funds. 

BBC business news, 11 September 2015

General

Individual Accountability for Corporate Wrongdoing

The US Department of Justice has examined its approach to corporate investigations. It states one of the most effective ways to combat corporate misconduct is by seeking individual accountability from those perpetrating the wrongdoing. Guidelines for investigators suggest they focus on individuals from the beginning. 

U.S. Department of Justice, 9 September 2015

Health & Safety

Hugo Boss fined £1.2 million over death of four-year-old killed by falling mirror

A four-year-old boy was crushed by a falling mirror at the Hugo Boss store in Bicester village. Hugo Boss were fined £1.2 million for two health and safety offences. Compensation for the boy's family was settled separately in a civil case. 

The Independent, 5 September 2015

Bar fined £100,000 after a customer consumed a drink containing liquid nitrogen

Oscar's Wine Bar Limited in Lancashire pleaded guilty to an offence of failing to ensure, so far as was reasonably practicable, that a non-employee was exposed to a risk to her health and safety when she was served a drink containing liquid nitrogen. The 18 year old underwent surgery to have her stomach removed following a night-out celebrating her birthday. 

BBC news, 17 September 2015