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20 July 2020
Issue: 7896 / Categories: Legal News , Constitutional law
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Spies, lies & dirty money

The long-awaited ‘Russia report’ has called for new legislation to ‘tackle espionage, the illicit financial dealings of the Russian elite and the “enablers” who support this activity’

The Official Secrets Act regime is out of date and ‘not fit for purpose’, according to the 55-page report by the Intelligence and Security Committee (ISC) into Kremlin influence, simply titled ‘Russia’.

‘Crucially, it is not illegal to be a foreign agent in this country,’ the report states. The outcome of a 2017 Law Commission consultation on a new Espionage Act is ‘still awaited’.

One specific issue an Espionage Act could address is ‘individuals acting on behalf of a foreign power and seeking to obfuscate this link’. The report refers to the US Foreign Agents Registration Act (FARA), which dates back to the 1930s and requires everyone who represents the interests of a foreign power apart from accredited diplomats to register with the authorities and provide information about activities and finances. There is no UK equivalent.

In evidence to the ISC, the director-general of MI5 said FARA-type legislation would create ‘the basis therefore of being able to pursue under criminal means somebody not declaring, thereby being undercover… today, it is not an offence in any sense to be a covert agent … unless you acquire damaging secrets and give them to your masters’.

While unexplained wealth orders were introduced in January 2018 and can be applied to assets valued at more than £50,000, they ‘may not be that useful in relation to the Russian elite’… moreover, ‘there are practical issues around their use’. The report quotes the director general of the National Crime Agency, ‘Russians have been investing for a long period of time… you can track back and you can see how they will make a case in court that their wealth is not unexplained, it is very clearly explained’.

The report states there are ‘similar concerns in relation to sanctions’.

Issue: 7896 / Categories: Legal News , Constitutional law
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MOVERS & SHAKERS

Freeths—Rachel Crosier

Freeths—Rachel Crosier

Projects and rail practices strengthened by director hire in London

DWF—Stephen Hickling

DWF—Stephen Hickling

Real estate team in Birmingham welcomes back returning partner

Ward Hadaway—44 appointments

Ward Hadaway—44 appointments

Firm invests in national growth with 44 appointments across five offices

NEWS
Criminal juries may be convicting—or acquitting—on a misunderstanding. Writing in NLJ this week Paul McKeown, Adrian Keane and Sally Stares of The City Law School and LSE report troubling survey findings on the meaning of ‘sure’
The Serious Fraud Office (SFO) has narrowly preserved a key weapon in its anti-corruption arsenal. In this week's NLJ, Jonathan Fisher KC of Red Lion Chambers examines Guralp Systems Ltd v SFO, in which the High Court ruled that a deferred prosecution agreement (DPA) remained in force despite the company’s failure to disgorge £2m by the stated deadline
As the drip-feed of Epstein disclosures fuels ‘collateral damage’, the rush to cry misconduct in public office may be premature. Writing in NLJ this week, David Locke of Hill Dickinson warns that the offence is no catch-all for political embarrassment. It demands a ‘grave departure’ from proper standards, an ‘abuse of the public’s trust’ and conduct ‘sufficiently serious to warrant criminal punishment’
Employment law is shifting at the margins. In his latest Employment Law Brief for NLJ this week, Ian Smith of Norwich Law School examines a Court of Appeal ruling confirming that volunteers are not a special legal species and may qualify as ‘workers’
Refusing ADR is risky—but not always fatal. Writing in NLJ this week, Masood Ahmed and Sanjay Dave Singh of the University of Leicester analyse Assensus Ltd v Wirsol Energy Ltd: despite repeated invitations to mediate, the defendant stood firm, made a £100,000 Part 36 offer and was ultimately ‘wholly vindicated’ at trial
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