Risk and Compliance Update — 30th October 2020

Risk and Compliance Update — 30th October 2020

In this issue:

Data protection

Coronavirus (COVID-19)

Financial crime


Practising certificate renewal

LexTalk®Risk & Compliance: a Lexis®PSL community



Data protection

New tools for international personal data transfers

Navigating a way through the international data transfer regime was never easy but it’s now a minefield, following the decision of the European Court of Justice in Schrems II. There’s no sign of substantive guidance from the Information Commissioner’s Office (ICO) on what to do following the Schrems II judgment, so to help you we’ve developed a range of tools, including a new Practice Note on practical compliance, two new Flowcharts and a Precedent assessment for your international data transfers. We’ve also added international Getting the Deal Through guidance on data protection and government investigations.

See News Analysis: New tools for international personal data transfers.


UK data adequacy decision by EU would face immediate legal challenge, lawmakers told

MLex: If the UK were to win a data adequacy finding from the EU, it would be ‘very likely, if not certain’ to face an immediate challenge by privacy campaigners, given recent rulings by the EU’s top court on international data transfers, a British technology industry representative has warned.

See News Analysis: UK data adequacy decision by EU would face immediate legal challenge, lawmakers told.


Enforcement notice regarding handling of personal data

The ICO has issued Experian Ltd, a credit reference agency, with an enforcement notice which requires it to notify people, by July 2021, that it holds their personal data, and how it is using them or intends to use them for marketing purposes. In addition, by January 2021, Experian Ltd must cease to use data derived from the credit referencing side of its business. It is also required to improve privacy information, stop the processing of any unlawfully collected personal data, and delete any data supplied under the lawful basis of consent as that data is now being processed using the lawful basis of legitimate interests. Failure to comply with the enforcement notice may result in further action, which could include a fine of up to £20m or 4% of its total annual worldwide turnover.

See: LNB News 27/10/2020 76.


Coronavirus (COVID-19)

What does the COVID-19 tier system mean for offices?

Regulations underpinning the three-tier lockdown system are now in force in England, as part of the government’s efforts to step up its response to the pandemic. Shalina Crossley, Partner, Colin Leckey, Partner, and Gemma Taylor, Managing Practice Development Lawyer at Lewis Silkin consider if the new regulations demand a stricter approach to office work and meetings.

See News Analysis: What does the COVID-19 tier system mean for offices?


Financial crime

SFO publishes chapter outlining its approach to Deferred Prosecution Agreements

The Serious Fraud Office (SFO) has published a chapter from its handbook that provides ‘comprehensive guidance’ on how the SFO approaches Deferred Prosecution Agreements (DPA).

See: LNB News 23/10/2020 74.


SFO seeks approval of DPA with Airline Services Limited

The SFO has announced that it has reached a DPA with Airline Services Limited, which is subject to approval by the court. Approval is to be sought from Mrs Justice May at Southwark Crown Court on 30 October 2020.

See: LNB News 22/10/2020 24.


Beam Suntory Inc pays over $US 19m to settle foreign bribery case

The United States’ Department of Justice has announced that Beam Suntory Inc (Beam) has agreed to pay $US 19,572,885 to close the government’s investigation into violations of the Foreign Corrupt Practices Act. Beam entered into a three-year deferred prosecution agreement, in which Beam agreed to co-operate with the department investigation which resulted in a 10% reduction off the bottom of the US Sentencing Guidelines fine range. In reaching this resolution, the government considered, among other factors, the seriousness of the crime, failure to promptly disclose conduct which promoted the investigation and Beam’s failure to fully remediate.

See: LNB News 28/10/2020 53.


FATF plenary assesses strategic initiatives and country-specific processes

The Financial Action Task Force (FATF) has published the outcomes of its 21–23 October 2020 plenary meeting. The meeting covered the FATF’s strategic initiatives, country-specific processes and other strategic initiatives—namely strengthening measures to prevent the financing of proliferation of weapons of mass destruction. The plenary meeting also resulted in the publication of a new list of jurisdictions under increased monitoring and updated FATF recommendations on combating money laundering and terrorist financing.

See: LNB News 26/10/2020 36.


Importance of FATF highlighted during first G20 Anti-Corruption Ministerial

The G20 members have called for the ‘effective implementation’ of the FATF standards during the first G20 Anti-Corruption Ministerial. The FATF recommendations have been elaborated to help address financial crime. The FATF highlights three actions that should be undertaken by G20 members: investing in law enforcement, making available beneficial ownership information, and increasing oversight of the non-financial sectors.

See: LNB News 26/10/2020 5.


MPs launch inquiry into economic crime after files leak

Law360, London: An influential parliamentary committee launched an inquiry on 23 October 2020 into how government bodies are working to combat economic crime after leaked files allegedly highlighted the failure of law enforcement to act against potential money laundering.

See News Analysis: MPs launch inquiry into economic crime after files leak.



FCA sets out information and case studies for potential whistleblowers

The Financial Conduct Authority (FCA) has published a number of webpages on whistleblowing, setting out how to report instances to the FCA, how the regulator can act, protecting whistleblowers’ identity, case studies, contact information, and what happens to disclosed information after a report is made.

See: LNB News 22/10/2020 37.


Practising certificate renewal

The Solicitors Regulation Authority has announced that it has extended the practising certificate renewal window until 20 November 2020.

See: LNB News 23/10/2020 83.


LexTalk®Risk & Compliance: a Lexis®PSL community

Collaborate and network with a community of expert lawyers

LexTalk® is an online community forum which gives Lexis®PSL subscribers the opportunity to post questions, hold conversations, participate in discussions and share best practice. It has been designed to provide a secure place for legal professionals to discuss legal developments, offer and receive peer support, and gain a sense of up-to-date market practice and advances in real-time. You can access and post questions on all of the dedicated practice area forums, including a dedicated community for Lexis®PSL Risk & Compliance.

Click here to sign up and meet like-minded community members, create a profile, connect, share, and start participating today! Alternatively, you can access LexTalk® on the key resources tab on your Practice Area home page.


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About the author:
Allison is a former partner of Shoosmiths, with extensive experience of legal management and practice compliance.