by Elina Karpacheva & Branislav Hock

This brand new paper that was recently published entitled “Foreign whistleblowing: The impact of US extraterritorial enforcement on anti-corruption laws in Europe” investigates the expansion of US law in the area of transnational economic crime by discussing the case of foreign whistleblowers, defined as non-US citizens who help US enforcement authorities to sanction both non-US corporations and US corporations that engage in economic crime. Written by Elina Karpacheva and Branislav Hock, the paper shows that extraterritorial application of US whistleblowing laws is part of a broad trend associated with extraterritorial enforcement of US laws, allowing the USA to become the leader in sanctioning US corporations as well as non-US corporations for economic crime. Continue reading…

The Financial Stability Board (FSB) has recently published a letter from its Chair, Klaas Knot, to G20 Finance Ministers and Central Bank Governors, ahead of the G20 meeting on 24 and 25 February. The letter notes the recent easing in global financial conditions but warns that, while expectations of a ‘soft landing’ for the global economy have grown, the outlook remains clouded by uncertainty. The combination of near record-high levels of debt, rising debt service costs and stretched asset valuations in some key markets could pose serious threats to financial stability. Continue reading…

The Financial Stability Board (FSB) has on 16 February published a report on the financial stability risks of Decentralised Finance (DeFi). DeFi is commonly used to describe services in crypto-asset markets that aim to replicate some functions of the traditional financial system in a supposedly decentralised manner – though the actual level of decentralisation varies widely. The report, which was delivered to the February G20 Finance Ministers and Central Bank Governors meeting, concludes that while the processes to provide services are in many cases novel, DeFi does not differ substantially from traditional finance in the functions it performs or the vulnerabilities to which it is exposed. Continue reading…

The Financial Conduct Authority (FCA) has used its powers to enter and inspect several sites around Leeds suspected of hosting illegally operated crypto ATMs. The FCA gathered evidence from several sites around the city as part of a joint operation with West Yorkshire Police’s Digital Intelligence and Investigation Unit. Mark Steward, Executive Director of Enforcement and Market Oversight at the FCA, said: “Unregistered Crypto ATMs operating in the UK are doing so illegally. We will continue to identify and disrupt unregistered crypto businesses operating in the UK. Crypto businesses operating in the UK need to be registered with the FCA for anti-money laundering purposes. However, crypto products themselves are currently unregulated and high-risk, and you should be prepared to lose all your money if you invest in them.”

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Ursula von der Leyen : “For almost one year now, Russia’s war of aggression has been sowing death and destruction. Putin is not only waging a brutal war on the battlefield but he is also viciously targeting civilians. The aggressor has to pay for this. Today, we are turning up the pressure with a 10th package of sanctions. First, we propose further export bans worth more than €11 billion, to deprive the Russian economy of critical technology and industrial goods. For maximum impact, we are targeting many industrial goods that Russia needs, and that it cannot get through backfilling by third countries. Vital goods such as electronics, specialized vehicles, machine parts, spare parts for trucks and jet engines. And we are targeting goods for the construction sector which can be directed to Russia’s military, such as antennas or cranes.
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by Eva Skornicka

Despite their reputation, gaming companies have to follow regulations that are stricter than nearly any other industry, and it’s up to programmers to ensure compliance. Most companies think of compliance and IT as completely separate departments within their companies, whose members only meet when a laptop crashes or when there’s a birthday party for Melody from HR. But the reality is that IT — especially IT development — has to work hand in hand with compliance in order for a company to be fully compliant in many cases.  Continue reading…

by Mark Worth

When doctors at Vilnius City Clinical Hospital demanded bribes of up to €400 from patients in order to receive medical care, one patient stood up and said no. Out of the person’s civic duty, the hospital’s director and four doctors are under investigation, and more than €70,000 in fines have been imposed. As a way of showing gratitude, Lithuanian officials gave the whistleblower a monetary reward. The reward was one of 57 that Lithuania’s Special Investigation Service (STT) paid to corruption witnesses in 2022, the highest being €2,500. Rewards totalled €40,000 last year, nearly double the €22,000 the STT paid to 31 whistleblowers the year before. Continue reading…

The FCA alleges Argento Wealth Ltd (AWL) unlawfully did the following: took approximately £2.8 million as deposits under loan agreements and/or as part of an unauthorised collective investment scheme; unlawfully arranged investments in EMB Fund Limited (EMB) totalling about US$9 million; and breached the restrictions on financial promotion. The FCA alleges that Mr Willis was knowingly concerned in this unlawful activity. The FCA considers that AWL and Mr Willis have failed to produce credible evidence that AWL can repay the funds borrowed from both retail investors and EMB (plus the interest due), and AWL is therefore insolvent. The FCA has obtained undertakings equivalent to interim orders freezing AWL’s/Mr Willis’ remaining assets. Continue reading…

by Erika Eliasson-Norris

Company culture and governance are intertwined, influencing and reflecting upon one another – which is why a lack of governance is to blame for bad company culture. Just as governance starts at the top of a business and must be shared with the layers of business, company culture spreads from the top too. Whether your company’s governance is good or bad will determine if the company culture is good or bad. Continue reading…

The President of the European Commission, Ursula von der Leyen, travelled to Kyiv last week, accompanied by 15 Commissioners, for the first ever meeting between the College and the Ukrainian Government. The meeting takes place back to back with the EU-Ukraine summit, the first since the start of Russia’s war of aggression against Ukraine and the granting of candidate status. The meeting between the College and the government of Ukraine sends a strong signal of the EU’s unwavering commitment to stand by Ukraine for as long as it takes, including with a new €450 million assistance package for 2023 announced by President von der Leyen. This brings the total support made available so far to Ukraine since the beginning of Russia’s war from the EU, its Member States and European financial institutions to around €50 billion. In addition to this, the Commission is working towards a €1 billion contribution to fast recovery. Continue reading…