Top law firm warns on crime
Businesses worldwide face increasing scrutiny over white-collar crime due to new financial crime laws, A&O Shearman warned in its annual White-collar Crime and Investigations Review
The report examines legal trends across multiple jurisdictions, highlighting key issues for 2025.
A&O Shearman partner and U.K. head of investigations and white-collar Eve Giles said this is a comprehensive analysis of regulatory measures and challenges, including whistleblowing, compliance, cybersecurity, ESG, and internal investigations. She emphasised the importance of vigilance, particularly for in-house counsel, in a complex geopolitical landscape.
Cybersecurity remains a critical focus, with state-sponsored cyberattacks prompting stricter regulatory oversight. For example, the U.S. has imposed substantial fines for inadequate cybersecurity reporting, and Australia’s 2024 Cyber Security Act marks a tightening of rules in this space.
Geopolitical tensions continue to impact multinational businesses, requiring careful monitoring of shifting regulations. Sanctions enforcement is expected to scrutinise blockchain and digital currencies, as regulators aim to prevent their use for sanctions evasion.
ESG reporting is also under increased scrutiny. The EU’s Corporate Sustainability Reporting Directive (CSRD) mandates reporting on ESG’s financial impact, while Australia’s Securities and Investments Commission (ASIC) has penalised firms for greenwashing. In the U.S., the Securities and Exchange Commission (SEC) recently imposed a US$17.5 million fine on an investment firm for misleading ESG-related statements.
NGOs and activists are increasingly leveraging criminal laws to drive enforcement action against alleged human rights abuses and environmental harm in supply chains, such as recent U.K. challenges concerning the cotton industry.
Corporate criminal liability is expanding, with jurisdictions introducing new offences and broadening existing laws. Australia has implemented a ‘failure to prevent bribery’ offence, imposing strict liability on businesses. The U.K.’s ‘failure to prevent fraud’ offence, effective from September 2025, requires large firms to establish ‘reasonable procedures’ to prevent fraud by associated parties. Belgium has criminalised ‘ecocide’ and strengthened measures against ‘social dumping.’
The Polish Presidency of the EU Council is expected to push forward the proposed EU Directive on Anti-Corruption, while in the U.S., a potential Trump administration could shift enforcement priorities, focusing less on Russia and more on China.
China is intensifying anti-corruption efforts, involving foreign entities in disciplinary investigations. Additionally, China’s anti-sanctions laws, including its ‘unreliable entity’ mechanism, pose risks for foreign-owned businesses operating in the country.
Eve Giles added that the growing complexity of global regulations underscores the need for expert legal guidance. She emphasised that A&O Shearman’s global reach and local expertise enable businesses to navigate these evolving legal landscapes effectively.