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Regulatory Ramblings

Regulatory Ramblings: Episode 75 – Rethinking Hong Kong’s Startup Ecosystem and Its Legal Foundations with Syed Musheer Ahmed, Joshua Chu, and David Cameron

In this episode, we feature two conversations exploring different frontiers of finance and technology.
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This episode focuses on Hong Kong’s startup company environment. Specifically, how conducive is the city’s ecosystem for their inception, growth, and scaling up—legally, commercially, and policy-wise?
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In the initial spotlight segment, we speak with David Cameron, a veteran American lawyer based in the territory who advises startups on the challenges and pitfalls startups face in their earlier stages. Obtaining affordable and sound legal advice is a key part of their quandary.
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Following that, we discuss how to establish a body that provides genuine support and mentoring to emerging HK businesses, featuring Syed Musheer Ahmed, managing director of FinStep Asia and a former regulator with the Virtual Asset Regulatory Authority in Dubai, alongside local lawyer Joshua Chu. Simply put, it’s going to revolve around a public-private partnership.

David Cameron is managing partner and founder of the David Cameron Law Office, or DCLO—an independent, HK-based law firm offering international legal services. Founded in 2021, the firm is qualified to act on matters of Hong Kong and New York law. He has 16 years of experience in the Hong Kong market—including time spent at some of the largest law firms in the world, such as Linklaters and Allen & Overy.

DCLO is a corporate law firm, offering advice and solutions on general corporate matters, capital raising, M&A, fund formation, and contract law. DCLO also has specialized areas in family law, employment law, immigration, and litigation. In addition, DCLO has the unique offering of acting as external general counsel for growing companies that do not yet have their own in-house legal counsel.
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DCLO is also deeply involved in Hong Kong initiatives, such as family offices, Hong Kong limited partnership funds (LPFs), Hong Kong open-ended fund companies (OFCs), and the Hong Kong Capital Investment Entrant Scheme.

Joshua Chu is a prominent Hong Kong lawyer in all matters fintech and crypto, and a prolific writer. His opinion and insights are much sought after by the local press and correspondents of major foreign news organizations operating in the city. You can often hear him at his most candid on the radio at RTHK. He is also co-chair of the Hong Kong Web 3 Association and legal advisor to the Hong Kong Blockchain Association.

Syed Musheer Ahmed is the managing director of FinStep Asia—a firm he founded six years ago. With over 18 years of extensive experience as an ecosystem builder in the realms of capital markets, fintech, and virtual assets, including a decade as a global markets trader, before coming to Hong Kong to attain his MBA from the University of Hong Kong and London Business School’s joint program.

A self-described “fintech ballerina,” since 2016, Musheer has contributed extensively to building the region’s fintech and virtual assets ecosystem, particularly as the co-founder and as a concurrent board member and the inaugural general manager of the Fintech Association of Hong Kong (FTAHK).

He has also done a stint as a regulator. Beyond his many contributions to the territory’s fintech regulatory policy during his tenure with the FTAHK, from October 2022 to January 2024, he served as a financial markets risk assurance lead with the Virtual Assets Regulatory Authority in Dubai.

Discussion:

The conversation begins with a recent article published in the South China Morning Post, written by Petty Sito and Julie Zhang, which discusses how InvestHK, a quasi-governmental body, is now supporting local companies in expanding their overseas operations, a shift from its previous focus on attracting investment to the city over the past 25 years.

The article mentions that the Evident Group, operator of a digital investment platform for alternative assets and licensed by the Securities and Futures Commission, formed a partnership with Zand Bank, the UAE’s first fully licensed digital bank. The collaboration will provide the Dubai-based bank’s clients with investment opportunities through Evident’s tokenization technology and infrastructure.

Yet, is that enough when places like Singapore, Taiwan, and Israel long ago seemed to have learned how to nurture and scale up startups to go global? Our guests today believe that an empowered, well-resourced startup-centric body would be a good idea, and it will require a public-private partnership to make it happen.

The crux of the discussion is what can be done to improve Hong Kong’s startup ecosystem? More pointedly, what can be done to help up-and-coming companies reach their potential and become the juggernauts of tomorrow? Indications are that it will require a separate entity offering genuine startup support, something beyond InvestHK, Cyberport, Science Park, or the Hong Kong Trade Development Council.

David kicks things off, sharing his thoughts on the legal and compliance challenges that startups face in the Special Administrative Region with Regulatory Ramblings host Ajay Shamdasani. They discuss how to effectively serve as a lawyer for a startup when they don’t have much of a legal budget. In such instances, fractional or part-time in-house counsel might be more suited to a firm’s means and needs.

Yet, beyond legal considerations, other mistakes do startups make, such as running out of money too soon, seem like a cliché at this point. David shares his perspective on what can be done to improve the city’s ecosystem for startups and stresses that legal expenses should be seen as an investment in a firm’s future rather than costly, burdensome drudgery.

The discussion then shifts to Musheer and Joshua in the second segment. They stress that looking objectively at the SAR’s existing structure of InvestHK, Cyberport, and Science Park, and without being overly critical of what has come before, though past government actions – mistakes have been made and, hopefully, lessons have been learned. Even still, they ask, what would need to be done to create a proper startup support entity?

As Musheer notes, something distinct from either Cyberport or HKSTP is needed: “more of an internal InvestHK with a main [key performance indicator] of building and sustaining [a] local ecosystem.”

They both emphasize that the hallmark of a strong startup ecosystem is the strength of its community. “They need bank account access, government subsidies, and both local and international business ties,” Musheer said.

In a similar vein, Joshua added: “Is the community open to it [startups]? Hong Kong can be very myopic, with everyone doing their own thing. Early-stage funding in here is weak. How do we fix that?”

Both men cited examples from around the world that have been successful, including private-public partnerships, incubators like Hong Kong’s WHub, and university grants for startups – all of which Hong Kong has.

“The pain points in Hong Kong are that it is rich in tech and ideas, but you need many people for startups to thrive; a critical mass of consumers. They need a pool of consumers ready to be excited about product launches. Then look at how incubators can pitch to select committees,” Joshua said.

Both experts conclude that the city needs not only investors, but also mentors and a nurturing, open-minded community with support systems. That includes non-financial operational support for local startups in Hong Kong, with adequate communication and partnerships, and angel investors who can help with coordinating matters.

Culture and mindset are a key part of the equation. The local startup scene needs local angel advisers because, as Joshua observes, “the Hong Kong business environment is too Asian, too formulaic and math-based. We need some element of [creative] strategy.”
Infrastructure issues are also a concern. For example, the city’s Cyberport and Science Park could use better transportation, they say, because both locations are far away from the core business districts of Central, Admiralty, and Wanchai. Beyond that, both say the city has great facilities that can help bring innovative companies together.
“What’s needed is more facilitation of commercialization,” Musheer said.

The ultimate question is whether private enterprises can collaborate with the government to develop more effective business strategies.

Regulatory Ramblings podcasts is brought to you by The University of Hong Kong – Reg/Tech Lab, HKU-SCF Fintech Academy, Asia Global Institute, and HKU-edX Professional Certificate in Fintech, with support from the HKU Faculty of Law.

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TechLaw10

TechLaw10: AI: US AI Action Plan vs EU AI Act

In this film, Punter Southall Law’s Jonathan Armstrong discusses different approaches to AI legislation with Eric Sinrod, California professor and attorney at Duane Morris LLP. This is episode 294 in the popular TechLaw10 series. You can listen to earlier podcasts here.

Jonathan & Eric start by talking about America’s AI Action Plan and the hands-off approach to AI regulation promoted by the Trump administration. Jonathan contrasts that approach with the approach in the EU under the EU AI Act. Jonathan talks about the elements of the EU AI Act that are already in force:

1. bans on prohibited AI

2. mandatory AI literacy programs

3. provisions relating to GPAI. There are FAQs on the EU AI Act here.

There is also a glossary of AI terms here.

Jonathan also talks about the GPAI Code, which is discussed here.

Eric & Jonathan also talk about:

  • The UK’s approach to AI regulation
  • The effect of AI regulation on the economy
  • The differences between Federal and State law in the US
  • The FTC’s role in policing AI & whether that will change
  • AI-related dawn raids
  • AI-related GDPR fines
  • suspensions of AI apps in Europe
  • The European AI Office

Our previous podcast on AI literacy is here    • TechLaw10: AI Literacy – What is it & How …  .

The AI Action Plan, which Eric discusses, is here.

Jonathan talks briefly about his work on the NYSBA AI Task Force. There are details of that here.

You can learn more about Eric at Duane Morris LLP, and Jonathan here at Punter Southall Law

This podcast was recorded on 5 August 2025

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Blog

Sherlock Holmes and Compliance: Investigative Insights from “The Valley of Fear”

Here’s a detailed, insightful article in the style of Tom Fox for a corporate compliance audience, highlighting investigative lessons from the Sherlock Holmes novel, “The Valley of Fear.”

For compliance professionals, investigations are the bedrock of effective compliance programs. Whether it’s tracking down evidence of bribery, uncovering fraud schemes, or rooting out systemic misconduct, the investigative methods you deploy can significantly impact your organization’s integrity, reputation, and bottom line.

“The Valley of Fear” offers a wealth of investigative wisdom. Its narrative of deception, undercover operations, secret societies, and surprising plot twists provides vivid lessons highly relevant to today’s corporate compliance landscape. Let’s unpack five key investigative lessons, each illustrated with memorable scenes from this timeless detective classic.

Lesson 1: Do Not Take Facts at Face Value

Illustrated By: Detailed Analysis of the Crime Scene. Upon arrival at Birlstone Manor, Holmes carefully examines the room where Douglas’s body was discovered, noting inconsistencies like the placement of furniture, window access, and unusual blood patterns.

The central narrative of “The Valley of Fear” revolves around the apparent murder of John Douglas at his Manor House in Birlstone. Initially, the crime scene appears straightforward: Douglas has seemingly been shot at close range, and the crime scene implicates an intruder. Yet Holmes immediately suspects deeper layers beneath the obvious evidence. His meticulous examination of the scene, blood patterns, room layout, and oddities like misplaced items reveals inconsistencies that others missed.

For compliance professionals, the lesson is clear: avoid jumping to conclusions based solely on initial evidence. It is tempting and human to embrace straightforward narratives quickly. But like Holmes, investigators must resist that impulse, digging deeper, questioning assumptions, and rigorously testing evidence for hidden contradictions or overlooked facts. By refusing to accept surface-level interpretations, compliance teams protect organizations from premature and potentially misguided conclusions.

Compliance Takeaway: Always scrutinize initial evidence meticulously and objectively. Never accept evidence without question or assume that initial appearances represent complete facts.

Lesson 2: Investigative Cooperation is Essential

Illustrated By: Collaboration between Holmes and MacDonald. Holmes and Inspector MacDonald openly discuss theories, evidence, and ideas, working cooperatively rather than competitively. Holmes shares insights freely, establishing mutual trust and respect that propel the investigation forward. 

Throughout the novel, Holmes collaborates closely with Scotland Yard’s Inspector MacDonald, who initially struggles to make sense of the complex scenario. Rather than competing, Holmes works cooperatively with MacDonald, openly sharing insights, theories, and information. Their mutual respect, dialogue, and professional cooperation ultimately contribute to solving the intricate puzzle.

Corporate compliance investigations similarly require effective internal and external cooperation. Compliance departments must partner seamlessly with Legal, HR, Audit, and IT functions, as well as outside counsel or forensic experts when necessary. Effective cooperation and collaboration across departments ensure thoroughness and objectivity, minimize blind spots, and enhance investigative outcomes. Holmes demonstrates that strong investigative results rely on teamwork rather than isolation or internal competition.

Compliance Takeaway: Foster collaborative relationships across organizational functions, aligning investigative efforts with Legal, HR, IT, and other stakeholders to produce effective outcomes.

Lesson 3: Patience and Persistence Yield Results

Illustrated By: Patient Uncovering of Douglas’s Background. Holmes painstakingly reconstructs Douglas’s past life in America, gradually identifying him as a Pinkerton detective who infiltrated the Scowrers. This meticulous work takes time, patience, and sustained investigative discipline.

Holmes painstakingly pieces together the clues surrounding John Douglas, ultimately revealing Douglas’s true identity as Birdy Edwards, a former Pinkerton detective who infiltrated a dangerous criminal organization, the Scowrers, in the United States. This revelation is not instantaneous; Holmes’ success comes from persistence, incremental discovery, and careful analysis of evidence collected over time.

In corporate compliance investigations, patience and persistence are equally critical. Compliance officers must frequently manage complex, multi-faceted investigations spanning weeks, months, or even years. Instant resolutions are rare; critical information often emerges slowly and incrementally. Holmes’s deliberate and patient approach to unraveling Douglas’s identity highlights the importance of tenacity, emphasizing that thoroughness and sustained attention invariably produce the clearest investigative outcomes.

Compliance Takeaway: Recognize and embrace that thorough investigative efforts are often incremental, requiring sustained attention and patience to understand complex compliance issues fully.

Lesson 4: Maintain a Big-Picture Perspective

Illustrated By: Contextual Awareness of Moriarty’s Influence. Holmes keeps Moriarty’s potential involvement clearly in mind throughout, maintaining awareness that individual incidents might connect to larger criminal patterns.

In the novel, Holmes repeatedly emphasizes that the apparent Birlstone murder is merely one small part of a larger, sinister picture orchestrated by the infamous Professor Moriarty. Though Moriarty never physically appears, his influence permeates the narrative, connecting seemingly unrelated events and adding deeper context to the investigation. Holmes maintains a sharp awareness of this broader context throughout, ensuring he does not lose sight of underlying motivations and interconnected plots.

This lesson resonates powerfully for compliance professionals. Frequently, investigations initially perceived as isolated incidents reveal systemic compliance or ethical weaknesses within an organization. Investigators must always remain cognizant of the broader organizational, cultural, or regulatory contexts influencing misconduct. By keeping this “big picture” perspective, compliance teams ensure investigations are holistic, not narrowly focused, enabling effective systemic remediation rather than piecemeal solutions.

Compliance Takeaway: Maintain holistic awareness in compliance investigations, ensuring isolated incidents are analyzed within broader organizational, regulatory, or ethical contexts to uncover deeper systemic issues.

Lesson 5: Effective Communication is Crucial 

Illustrated By: Contextual Awareness of Moriarty’s Influence. Holmes keeps Moriarty’s potential involvement clearly in mind throughout, maintaining awareness that individual incidents might connect to larger criminal patterns.

At key points throughout the novel, Holmes carefully explains his deductions, processes, and conclusions to Inspector MacDonald, Dr. Watson, and other key players. His ability to clearly articulate reasoning and insights, especially when conclusions appear counterintuitive or complex, is essential to maintaining credibility, building consensus, and driving effective outcomes.

Corporate compliance investigators must also master clear, effective communication. It’s insufficient merely to uncover misconduct; the true skill lies in effectively communicating findings to stakeholders, management, regulators, and even potentially implicated employees. Holmes shows us that investigative brilliance must be matched by communicative clarity. In corporate settings, investigative reports must clearly explain methodology, facts, assumptions, and conclusions, ensuring decisions based on investigations are informed, justified, and actionable.

Compliance Takeaway: Maintain holistic awareness in compliance investigations, ensuring isolated incidents are analyzed within broader organizational, regulatory, or ethical contexts to uncover deeper systemic issues.

Sherlock Holmes as Compliance Inspiration

Sherlock Holmes remains an enduring inspiration to corporate compliance professionals precisely because effective investigations are foundational to compliance success. Holmes’s methods, including detailed scrutiny of evidence, a collaborative approach, patient and persistent inquiry, a holistic perspective, and clear communication, are not merely fictional flourishes; they represent essential best practices.

“The Valley of Fear” offers compliance officers vivid, relatable insights, underscoring that successful investigations require disciplined methodology, sustained inquiry, careful analysis, cross-functional cooperation, and effective stakeholder communication. As Sherlock Holmes memorably states, “It is, of course, a trifle, but there is nothing so important as trifles.” For compliance professionals today, Holmes’s wisdom is more relevant than ever, reminding us that attention to detail, disciplined process, and communicative clarity are never trivial.

By embracing Holmes’s investigative rigor and lessons from this classic novel, compliance professionals equip themselves and their organizations to meet today’s complex challenges effectively. After all, just like Holmes himself, the compliance investigator’s role is fundamentally about uncovering truth; patiently, methodically, and tirelessly ensuring organizational integrity and ethical clarity amidst a complex corporate landscape.

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Innovation in Compliance

Operationalizing Trust at Scale: A Conversation with Amanda Carty on Compliance and AI

Innovation comes in many areas, and compliance professionals must be ready for and embrace it. Join Tom Fox, the Voice of Compliance, as he visits with top innovative minds, thinkers, and creators in the award-winning Innovation in Compliance podcast. Today, we begin a 3-part podcast series sponsored by Diligent with Jessica Czeczuga, Amanda Carty, and Neta Meidav. In Part 2, Tom is joined by Amanda Carty, GM Compliance Solutions at Diligent.

Carty shares insights from her decade-long experience in the GRC field and offers detailed perspectives on how leaders can model ethical behavior within their organizations. The conversation dives into how Diligent helps companies assess and document leadership effectiveness and the role of AI in enhancing compliance initiatives. Carty emphasizes the necessity of leaders acting as ambassadors of culture and the impact of measurable outcomes in compliance programs. The episode also explores the integration of AI and chatbots to provide real-time compliance support to employees, ensuring efficiency and ease of access to crucial information.

Key highlights:

  • Importance of Tone at the Top
  • Leadership and Ethical Culture
  • AI in Compliance
  • Employee Engagement and Technology
  • Actionable Takeaways for Compliance Professionals 

Resources:

⁠Amanda Carty on LinkedIn

⁠⁠Diligent⁠

Tom Fox

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⁠Facebook⁠

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Daily Compliance News

Daily Compliance News: August 7, 2025, The SEC Can Gag Edition

Welcome to the Daily Compliance News. Each day, Tom Fox, the Voice of Compliance, brings you compliance-related stories to start your day. Sit back, enjoy a cup of morning coffee, and listen in to the Daily Compliance News. All, from the Compliance Podcast Network. Each day, we consider four stories from the business world, compliance, ethics, risk management, leadership, or general interest for the compliance professional.

Top stories include:

  • Trump is making corruption more dangerous. (Foreign Affairs)
  • Uber picked business over customer safety. (NYT)
  • The 9th Circuit upholds the SEC gag rule. (Reuters)
  • To Regulate or Not to Regulate. (Bloomberg)

You can donate to flood relief for victims of the Kerr County flooding by going to the Hill Country Flood Relief here.

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Hill Country Authors

Hill Country Authors – Exploring the Challenges of a Green Transition with Tom Ortiz

Welcome to a new season of the award-winning Hill Country Authors Podcast, sponsored by Stoney Creek Publishing. In this podcast, Hill Country resident Tom Fox visits with authors who live in and write in and about the Texas Hill Country. In this episode, Tom visits with Tom Ortiz, who discusses his diverse professional background, ranging from thermodynamic experiments to oil and gas industry work, and his critical views on the green energy transition.

Ortiz elaborates on his new book, ‘Why We Struggle to Go Green,’ aiming to bridge the gap between casual readers and academic audiences with accessible yet detailed insights into energy systems like hydrogen and carbon capture. He addresses the harsh realities of shifting to renewable sources, emphasizing the need for reduced energy consumption and greater resilience to climate change. Ortiz also reflects on the evolving role of academia and its challenges in fostering unbiased technological advancement. The discussion concludes with Ortiz’s future aspirations and a brief about his collaboration with Stony Creek Publishing.

Key highlights:

  • The Genesis of the Book
  • Harsh Realities of the Green Transition
  • Managing the Costs of Clean Energy
  • The Role of Academia
  • Sustainable Solutions for Population Growth

Resources:

Tom Ortiz on LinkedIn

Tom Ortiz Substack

Tom Ortiz on Stoney Creek Publishing

Why We Struggle to Go Green on Texas A&M University Press

Stoney Creek Publishing Website

Podcast Cover Art

Nancy Huffman Fine Art

Tom Fox

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Compliance Tip of the Day

Compliance Tip of the Day – Why Engage in Pre-acquisition Due Diligence

Welcome to “Compliance Tip of the Day,” the podcast where we bring you daily insights and practical advice on navigating the ever-evolving landscape of compliance and regulatory requirements. Whether you’re a seasoned compliance professional or just starting your journey, we aim to provide you with bite-sized, actionable tips to help you stay on top of your compliance game. Join us as we explore the latest industry trends, share best practices, and demystify complex compliance issues to keep your organization on the right side of the law. Tune in daily for your dose of compliance wisdom, and let’s make compliance a little less daunting, one tip at a time.

Today, we consider the multiple legal and business reasons to engage in pre-acquisition due diligence in M&A transactions.

For more on this topic, check out The Compliance Handbook, a Guide to Operationalizing Your Compliance Program, 6th edition, which LexisNexis recently released. It is available here.

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AI Today in 5

AI Today in 5: August 7, 2025, The US v. China Episode

Welcome to AI Today in 5, the newest addition to the Compliance Podcast Network. Each day, Tom Fox will bring you 5 stories about AI to start your day. Sit back, enjoy a cup of morning coffee, and listen in to the AI Today In 5. All, from the Compliance Podcast Network. Each day, we consider four stories from the business world, compliance, ethics, risk management, leadership, or general interest about AI.

For more information on the use of AI in compliance programs, Tom Fox’s new book is Upping Your Game. You can purchase a copy of the book on Amazon.com

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Blog

Cross-Atlantic Fraud & Corruption Enforcement: Intersections and Divergences

In today’s dynamic compliance landscape, navigating the complexities of international corporate wrongdoing requires vigilance, foresight, and strategic action, as highlighted in A recent article entitled “Cross-Atlantic Impact: DOJ and SFO Self-Reporting and Enforcement Priorities,” by lawyers from McDermott, Will & Schulte. The article is an excellent review of areas where the fight against fraud and corruption aligns between the two countries and areas where they diverge. Today, I will review the article and consider what it means for the US company doing business in the UK or with UK companies.

The Serious Fraud Office (SFO) in the United Kingdom has made clear its expectations regarding self-reporting corporate misconduct, mainly aligning in philosophy, if not always in exact details, with its U.S. counterpart, the Department of Justice (DOJ). American companies must understand these nuances and adapt their compliance programs accordingly. Here are five critical reasons why U.S. businesses must closely monitor and adhere to the UK’s evolving fraud and bribery enforcement regime.

Prompt Self-Reporting Weighs Heavily in Favor of DPAs

The SFO guidance unequivocally states that companies demonstrating prompt self-reporting of corporate wrongdoing significantly increase their chances of obtaining a Deferred Prosecution Agreement (DPA). Conversely, any delay in self-reporting suspected wrongdoing “within a reasonable time of it coming to light” adversely impacts the company’s standing with the SFO.

Much like the DOJ, the SFO does not insist on complete internal investigations before self-reporting. Indeed, in many ways, both sets of prosecutors want companies to step forward as soon as possible. The degree of the inquiry expected depends on the clarity and strength of evidence. Where evidence indicates wrongdoing, companies are expected to self-report swiftly. Ambiguities may permit a more extensive preliminary investigation, but American companies should note that delays can risk losing the advantages offered by early disclosure.

Jurisdictional Triggers Demand Simultaneous Reporting

For American companies dealing with potential misconduct spanning jurisdictions, awareness and agility become paramount. According to SFO guidance, companies reporting suspected misconduct to another agency, such as the DOJ, should also inform the SFO simultaneously or immediately thereafter. Failure to do so negates any potential credit for self-reporting.

Consider a scenario where a company seeks a declination from the DOJ through prompt self-disclosure. Identifying a UK jurisdictional nexus, such as conduct occurring partly in the UK or financial impact felt within the UK, is crucial. The UK’s “failure to prevent bribery” and new “failure to prevent fraud” offenses can impose liability based on international conduct linked to a business presence or financial repercussions in the UK. Understanding and navigating these jurisdictional nuances quickly is imperative to safeguard against regulatory pitfalls and secure favorable treatment.

Increasingly Aggressive Fraud Enforcement

Fraud has emerged as a prominent enforcement priority for both the DOJ and SFO. American companies should pay particular attention to the UK’s new “failure to prevent fraud” (FTPF) offense, effective from September 1, 2025. This robust enforcement tool targets UK and non-UK entities whose associates engage in fraudulent conduct impacting UK interests.

American companies operating internationally must proactively establish “reasonable fraud prevention procedures” to counteract potential liability under this legislation. The urgency conveyed by the SFO, highlighted by senior officials expressing eagerness to utilize these new powers aggressively, cannot be overstated. Companies that neglect preparation risk being among the first prosecuted examples of this powerful legislation.

Coordination Between DOJ and SFO Enhances Risk Exposure

With the DOJ emphasizing fraud in areas affecting U.S. interests, ranging from healthcare and procurement fraud to investment scams, there is considerable overlap with misconduct addressed by the UK’s FTP fraud offense. The authors note that the US Supreme Court held in Kousisis v. United States that a defendant may be convicted of wire fraud for inducing a victim to enter a contract under material pretenses, even if there was no economic loss to the victim. This ruling may allow US prosecutors to pursue a broader range of fraud cases.”

A cross-jurisdictional approach is therefore essential. American companies uncovering fraud that victimizes both U.S. and UK entities or markets must carefully assess reporting obligations to both jurisdictions. The simultaneous or nearly simultaneous reporting requirements heighten the stakes and complexity, demanding robust internal mechanisms for rapid assessment and disclosure.

Continuing Vigorous Anti-Bribery Efforts Globally

Despite temporary uncertainties in the DOJ’s stance toward anti-bribery enforcement, global initiatives indicate relentless international focus. The SFO has intensified anti-bribery efforts through initiatives like the International Anti-Corruption Prosecutorial Taskforce, collaborating closely with French and Swiss authorities. The SFO’s involvement in the International Anti-Corruption Coordination Centre (IACCC) further underscores its commitment. The authors report that “the IACCC aims to facilitate international cooperation on ‘grand corruption’ investigations, including concerning intelligence and evidence gathering.”

In addition to the IACCC, “In March 2025, the SFO established an ‘International Anti-Corruption Prosecutorial Taskforce’ with the French Parquet National Financier (PNF) and the Office of the Attorney General of Switzerland (OAG) (Taskforce). Through the Taskforce, the SFO, PNF, and OAG commit to strengthening their existing cooperation and collaborating to deploy their wide-reaching anti-bribery legislation to prosecute overseas conduct.”

The DOJ’s recent reaffirmation of anti-bribery efforts through its White-Collar Enforcement Plan, highlighting bribery and money laundering harming U.S. interests, may complement these international initiatives. American companies must remain vigilant regarding potential liabilities under both the FCPA and the UK Bribery Act, carefully calibrating their compliance programs to meet rigorous enforcement expectations across jurisdictions.

Practical Steps for American Companies

Given these compelling reasons to pay close attention to the SFO guidance and evolving UK legislation, American companies must take proactive steps to fortify their compliance efforts:

  • Enhance Internal Controls: Companies must quickly develop comprehensive “reasonable fraud prevention procedures,” supported by thorough risk assessments and regularly updated policies.
  • Cross-Jurisdictional Risk Assessments: Implement rigorous processes for promptly assessing jurisdictional ties when misconduct emerges, allowing immediate and coordinated reporting where necessary.
  • Integrated Compliance Training: Ensure global compliance teams, legal counsel, and executive management understand SFO and DOJ expectations clearly, fostering prompt, informed responses.
  • Monitoring International Developments: Maintain continuous awareness of evolving enforcement policies and initiatives, particularly regarding fraud and bribery, to swiftly adapt compliance programs accordingly.
  • Preparedness and Responsiveness: Establish clear protocols for internal investigations and self-reporting decisions, emphasizing speed and comprehensiveness to maximize potential cooperation credit.

Conclusion

Navigating the intricate and often intersecting expectations of the SFO and DOJ presents ongoing challenges for American companies. However, understanding the strategic implications of prompt self-reporting, jurisdictional coordination, aggressive fraud enforcement, international collaboration, and robust anti-bribery efforts is vital.

Proactive compliance management, aligned closely with evolving international regulatory landscapes, is not merely advisable but something that every multinational needs to put in place. American corporations should approach compliance with the understanding that today’s oversight environment demands swift and strategic decision-making to mitigate risks effectively and position themselves favorably in the face of potential regulatory scrutiny.

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AI Today in 5

AI Today in 5: August 6, 2025, The Rethinking Compliance Episode

Welcome to AI Today in 5, the newest addition to the Compliance Podcast Network. Each day, Tom Fox will bring you 5 stories about AI to start your day. Sit back, enjoy a cup of morning coffee, and listen in to the AI Today In 5. All, from the Compliance Podcast Network. Each day, we consider four stories from the business world, compliance, ethics, risk management, leadership, or general interest about AI.

  • AI for compliance and contract review. (Nucamp)
  • Will Big Tech comply with EU rules on AI? (RFI)
  • AI for workers’ comp compliance. (Press Release)
  • Redefining finance compliance with AI. (VettaFi)
  • Using AI to rethink compliance. (Ethisphere)

For more information on the use of AI in compliance programs, Tom Fox’s new book is Upping Your Game. You can purchase a copy of the book on Amazon.com