Read the Blog
FCA consults on guidance for cannabis companies
Whilst the technical note is subject to a formal consultation and will only become official guidance once this process has been completed (please see our Corporate and Commercial blog here), the main thrust of the document is unlikely to change, reflecting as it does the FCA’s original stance in September last year. What it does do is provide welcome detail of the evidence would-be applicants will need to provide in order to pass the FCA’s eligibility review which, as the guidance makes clear, is substantial. There are no real surprises in these details but there are several requirements which may not have been fully appreciated before, specifically:
The FCA is quick to point out that its technical note may not be relied upon as guidance on POCA, which of course is the huge area of concern for investors in CRBs, but the proposed blanket application of additional due diligence to all such businesses looking to list in the UK speaks to the FCA’s assessment of the risk these businesses may pose: the FCA will normally only ask for this level of due diligence in exceptional cases where they think there may be a high risk that admission of the applicant’s securities may be detrimental to investors’ interests.
As the FCA notes in its introduction, this new guidance is designed to aid interpretation of the Listing Rules and related legislation but it also serves to put potential investors in CRBs on notice of the risks involved. An investor in an unlisted CRB in the UK or a CRB listed in an overseas jurisdiction may commit a money laundering offence if they receive or deal with income from an aspect of the business which is considered unlawful in the UK only if they know or suspect that the income represents the proceeds of a crime. This latter element is designed to protect the unwitting who may handle property which is in fact the proceeds of crime about which they had no knowledge or suspicion. Suspicion however is a very low bar for an individual to reach before criminal liability might be engaged and the FCA’s guidance and clear stance will make it harder for an investor to argue that they did not suspect the income they received was the proceeds of crime when the potential risks have been so clearly sign posted.
For advice on the issues raised in this blog please contact a member of our team and see our further blogs and news stories in ‘Medical Cannabis: Licensing and Investment Insights’.
Nicola Finnerty is a Partner in our Criminal Litigation team and a leading expert in white collar and business crime, proceeds of crime & asset forfeiture. Over the last 25 years she has been involved in many of the most high-profile, complex criminal and regulatory investigations and prosecutions, both in the UK and in matters which span multiple jurisdictions. Her expertise includes money laundering, fraud & bribery and corruption along with being regularly consulted by individuals and institutions in the regulated sector in respect of the Money Laundering Regulations 2017. Nicola represents high net worth individuals, multi nation corporate clients, financial institutions and professional firms in investigations and proceedings brought by UK enforcement agencies.
We are delighted to present, as a guest blog, the thoughts and views of Dr Valentyn Gvozdiy, managing partner of Golaw in Kyiv. Dr Gvozdiy outlines the significant changes to criminal procedure that have been heralded by the Russian invasion of his country and the subsequent adoption of martial law.
On Thursday 5 May, Kingsley Napley hosted the 4th annual Cross-Border Criminal Law Conference, which focused on individual and corporate accountability for international crimes.
This quarterly update provides a summary of a selection number of news stories relating to health and safety investigations and prosecutions, published in the period January - March 2022.
Whilst it is anticipated that prosecutions under the National Security and Investment Act 2021 (‘the Act’) will be exceptionally rare, the criminal sanctions set out in it are explicitly framed to create a “sufficiently robust deterrent to ensure compliance.” The provisions punish corporates and individual officers who connive or consent to commit an offence, as well as individual officers who are negligent (s.36). In addition, they are also extra-territorial (s.52), meaning that the scope of liability is particularly wide-ranging.
This quarterly environmental law update provides a summary of news stories in the period January 2022 – March 2022
The Prime Minister recently committed the UK’s support to achieving justice in respect of the war crimes allegations arising out of the Ukraine conflict. The conflict and associated allegations raise questions over the UK’s commitment and ability to bring prosecutions under the doctrine of “universal jurisdiction”. Universal jurisdiction describes the jurisdiction that is available in the national courts of many countries to prosecute individuals for the most serious international crimes, even if those crimes occurred abroad and neither the defendants nor victims have any connection to that country. Why only a few such prosecutions have taken place in the UK will be the topic of one of two panel discussions at Kingsley Napley’s Cross Border Criminal Law Conference on 5 May 2022.
This quarterly international criminal law update provides a summary of the news stories in the period January – March 2022. The relevance of international criminal law has been tragically highlighted by the current events in the Ukraine. This fast moving event has been covered below, along with a number of other international criminal law updates.
News broke last month that megastars Jay-Z, Meek Mill, Big Sean, Kelly Rowland and Fat Joe (among others) were supporting the introduction of a New York state law that aims to prevent the prosecution using rap lyrics in criminal trials.
On 28 February 2022, the UK Home Secretary Priti Patel announced to parliament that the UK would be ‘leading all international efforts’ to suspend Russia’s membership of INTERPOL.
This came moments before the Ukrainian minister of internal affairs, Denis Monastyrsky, made a public statement demanding Russia’s immediate expulsion from the organisation for “violating its basic principles and massive misuse of tools and services to cover up its crimes and persecute political enemies, particularly in Ukraine.”
The news is never short of horror stories involving travellers who find themselves detained in a foreign country. This is sadly a reality for thousands of British citizens who, for a variety of reasons, are being held in a prison abroad.
A new bill will be put forward to parliament tomorrow with the aim of increasing transparency of ownership of property in the UK. The introduction of this new Economic Crime (Transparency and Enforcement) Bill has been expedited following the sanctions announced last week, however the drive for change began over five years ago and that it is finally coming to fruition will be welcomed by many.
On 16 November the CJEU delivered its judgment following the publication of the Advocate General’s opinion on the UK-Ireland extradition questions which we wrote about here. The decision concerned the mechanisms for extradition to the UK from Ireland in two scenarios (1) under the terms of the withdrawal agreement from 1 February to 31 December 2020 and (2) under the EU-UK Trade and Cooperation Agreement (“TCA”) from 1 January 2021.
The judgment confirms the AG’s Opinion that Ireland is bound by the withdrawal agreement and the TCA (“the agreements”) in respect of extradition arrangements with the UK and accordingly extradition from Ireland to the UK post-Brexit will continue under those terms.
In September 2020, the first NHS prescription for cannabis medicine was issued to Billy Caldwell. This brought hope to him, his family and so many others that this medicine would become readily available to those patients who so desperately need it.
This blogs considers the recent corporate manslaughter conviction of Deco-Pak and two other recent corporate manslaughter cases, Bosley Mill and Aster Healthcare and what they tell us about the current approach to this offence. In January 2022 a garden supplies firm, Deco-Pak was found guilty of corporate manslaughter following a fatal accident at the Deco-Pak premises in Hipperholme, West Yorkshire on 14 April 2017.
The Medical Cannabis (Access) Bill (the ‘Bill’) aims to enable patients in England to access cannabis-based medicinal products (‘CBMPs’), such as nabiximols, more freely on the NHS. Although English law was changed in November 2018 to allow specialist doctors to prescribe cannabis (we have blogged about this here), very few people have been able to access NHS prescriptions which has left patients paying thousands of pounds a month for private prescriptions or unable to obtain treatment altogether. There are approximately 10,000 private prescriptions for CBMPs in the UK. In a paper published by BMJ Open in 2020, Professor David Nutt et. al. reported that thousands of UK patients were self-medicating with illicit cannabis-based products.
On 10 January 2020, the Financial Conduct Authority (FCA) became the anti-money laundering (AML) and counter-terrorist financing (CTF) supervisor for UK cryptoasset firms. Two years in, how effectively is it performing its role as the gatekeeper of the new registration regime?
This quarterly environmental law update provides a summary of news stories published in the period October – December 2021.
On 9 December the Gambling Commission published its annual Compliance and Enforcement Report for the financial year 2020–2021. This confirmed that the period was particularly active for the Enforcement and Compliance teams, with a record total of £32.1 million being paid by 15 gambling businesses as a result of fines or regulatory settlements. This included over £1.3m being paid by White Hat Gaming Ltd, after a January 2020 review by the Commission of its operating licence revealed inadequate policies and produces in respect of anti-money laundering (“AML”) and safer gambling.
On 9 November 2021 Advocate General Kokott handed down her opinion in respect of Case C-479/21 concerning Mr Sn and Mr Sd following a reference from the Irish Supreme Court which was made on 3 August 2021. Her opinion stated that the provisions of the Withdrawal Agreement and TCA which ensure the continuation of the European arrest warrant regime in respect of warrants issued by the United Kingdom (“UK”) during the transition period are binding on Ireland.
Skip to content Home About Us Insights Services Contact Accessibility