Corporate Crime Update – September 2014

Welcome to the September 2014 edition of our corporate crime update - our round-up of developments in relation to corruption, money laundering, fraud, sanctions and related matters.  Our update now covers a number of jurisdictions.  For the full update on each jurisdiction, please click on the name of the jurisdiction below.  Below we provide a brief overview of what is covered in each update.

United Kingdom/ Europe

• HMRC updated anti-money laundering guidance for money service businesses
• UK decides not to adopt US-style whistleblower rewards
• Bruce Hall £3 million confiscation order paid in full
• Innospec executives sentenced in corruption case
• JMLSG consults on amendments to guidance
• Ukraine sanctions update – recent developments in UK, EU and US
• Further EU restrictive measures against Russia 

Middle East

• GlaxoSmithKline faces fresh drug bribery claims in Syria
• SFO launches formal investigation of UAE bribery claims at Sweett Group 

Russia

• Owners of large Russian travel agencies accused of fraud
• Managing Director of oil company will face trial for €200,000 commercial bribery charges

Hong Kong

• SFC reprimands and fines Ping An of China Securities (Hong Kong) Company Limited $6 million over internal control failures
• Hong Kong loses bid to appeal limits to anti-bribery laws
• SFC v Ernst & Young (E&Y):  E&Y produces audit working papers in Hong Kong and appeals over disclosure order on documents held in China 

China, South East Asia & India

China

•  China's ex-security chief under investigation
• More than 25,000 probed for corruption in China in the first half of 2014
• Chief of the Communist Party's United Front Work Department in Inner Mongolia given life sentence
• China launches global 'fox hunt' for corrupt officials 

India

•  Alstom charged with corruption in India
• India vows war against healthcare corruption
• Eleven officials from food and drug administration suspended for taking bribes

 Taiwan

• Ex-prosecutor jailed for corruption in Taiwan

 Thailand

•  Thailand's Anti-Corruption Commission has recommended criminal charges against ousted PM

Indonesia

•  Ex-Alstom executive pleads guilty to bribing Indonesian government officials
• Former deputy governor of Indonesia's central bank sentenced to ten years for corruption

 Singapore

• Ex-business director of ST Electronics (Info-Software) Systems convicted of corruption

 Pakistan

• Smith & Wesson fined US$2 million for bribing Pakistani police

 Vietnam

•  Vietnam sets up 11 teams to scrutinise anti-corruption activities

 Laos

• Almost US$150 million lost due to corruption in Laos

Myanmar

• Myanmar to strengthen corruption commission

Japan

• Further charges brought against JTC employees in respect of alleged payments to government officials in Uzbekistan and Indonesia
• €98 million of assets seized from Nomura international following allegations of fraud on the local government of Sicily

Australia

• Coalition government establishes fraud and anti-corruption