Jefferson Klocke

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Following recent US regulations aimed at addressing forced labour issues in China, the UK government has published a series of proposed amendments to strengthen and expand the transparency in supply chains provisions of the Modern Slavery Act 2015 (“MSA”).  With the enactment of the MSA, the United Kingdom was the first country to require large businesses to publicly report the steps they were taking to prevent modern slavery in their operations – specifically, their supply chains.

The current transparency in supply chains provisions of the MSA require commercial organisations that carry on all or part of a business in the United Kingdom and have a total annual turnover of £36 million or more to report on the steps that they have taken during the financial year to ensure that slavery and human trafficking are not taking place in their business or supply chains.

The proposed amendments, if adopted, would beef up that reporting requirement by requiring subject commercial organisations’ modern slavery statements to include provisions on certain key topics, including due diligence and risk assessment measures to encourage openness about the steps those commercial organisations are taking to operate responsibly.…

Continue Reading UK Government Moves to Strengthen and Expand Measures for Tackling Modern Slavery in Supply Chains

On July 3, the US Department of Justice (DOJ) and Securities and Exchange Commission (SEC) issued the second edition of the Resource Guide to the US Foreign Corrupt Practices Act (the 2020 Guide), the first full-scope overhaul of the Resource Guide since its issuance in 2012.

As with the original edition, the 2020 Guide will…

The UK Financial Conduct Authority (FCA) has fined Commerzbank AG’s London branch (Commerzbank London) £37.8 million for failing to institute adequate anti-money laundering (AML) controls from 2012 to 2017 in violation of Principle 3 of the FCA’s Principles for Businesses.

Mark Steward, the FCA’s Executive Director of Enforcement and Market Oversight stated that “Commerzbank London’s failings over several years created a significant risk that financial and other crime might be undetected,” although the FCA did not identify any evidence of financial crime having been caused or facilitated by Commerzbank London’s AML control failings.

Financial institutions operating in the United Kingdom, such as Commerzbank London, are responsible for minimizing their risk of being used for criminal purposes, including the risk of being used to facilitate money laundering or terrorist financing.  UK firms are required to mitigate this risk by organizing and controlling their affairs responsibly and effectively, establishing and maintaining an effective, risk-based AML control framework and complying with the applicable Money Laundering Regulations.…

Continue Reading UK Financial Conduct Authority Fines Commerzbank’s London Branch £37.8 Million for Anti-Money Laundering Control Failings

Patrick Linehan, Zoe Osborne, Brittany Prelogar, Katherine Dubyak, and Jefferson Klocke co-authored an article titled “Considerations For Conducting Remote Internal Investigations” for Law360. The article, published April 3, discusses some of the legal and practical considerations in conducting remote investigations as the world grapples with containing the spread of COVID-19.