A&O Shearman urges businesses to “be vigilant” as it releases annual look at white-collar crime

The report, which considers the situations in jurisdictions from China via Australia to the U.S. and numerous European countries in between, highlights the most significant current and emerging issues that businesses should consider for 2025.

A&O Shearman partner and U.K head of investigations and white-collar Eve Giles said: “This is a comprehensive look at a range of new and existing measures and challenges relating to white-collar crime including whistleblowing, compliance programs, cybersecurity, ESG and internal investigations. 

“It’s also likely we’re facing a complex year geopolitically so businesses – in particular in-house counsel – will have to be additionally aware of the emerging rules and regulations.”

Issues such as state-sponsored cyberattacks have caused regulators to look closely at the adequacy of company cybersecurity reporting leading to substantial fines, for example, in the U.S.

As our report demonstrates, several jurisdictions have been tightening rules in the cybersecurity space: for example, Australia’s 2024 Cyber Security Act. Law and practice in this sphere is evolving rapidly and the expertise, global reach and depth of our practice is geared towards helping companies manage an agile response.

Geopolitical tensions have had significant implications for multinational businesses, and 2025 will be no different. Regime change can lead to shifts in regulatory and enforcement practices, requiring monitoring and adaption. 

Sanctions enforcement is likely to drive enhanced scrutiny of blockchain and digital currencies as enforcement bodies seek to prevent their use for sanctions dodging.

ESG reporting is also under the lens with moves in several jurisdictions to tighten rules on disclosure. In the EU, the Corporate Sustainability Reporting Directive (CSRD) means in-scope businesses will have to report on how ESG issues affect their financial performance.

In Australia the Securities and Investments Commission (ASIC) successfully pursued penalties against two financial services providers for greenwashing. In the U.S. the Security and Exchange Commission (SEC) imposed a USD17.5 million civil penalty on an investment firm for misleading statements about the percentage of assets held that integrated ESG factors into investment decisions.

Meanwhile NGOs and activists are using existing criminal laws in novel ways to try and force enforcement action against alleged human rights abuses and environment harms in supply chains.

For example, in the U.K. there have been challenges to alleged human rights abuses in the cotton supply chain.

One of the most notable trends in recent years is the expansion of corporate criminal liability. 

Many jurisdictions are introducing new offenses and expanding the scope of existing laws to hold companies accountable for a broader range of misconduct. In 2024 Australia introduced a 'failure to prevent bribery' offense, with strict liability for businesses that fail to prevent an associate from bribing a foreign public official. 

The U.K. has a new corporate criminal offense of ‘failure to prevent fraud’, coming into force in September 2025. The offense applies to large businesses that fail to prevent fraud by an associated party, with only one defense of having ‘reasonable procedures’ in place to prevent fraud. In Belgium, there is a new offense of 'ecocide,' and enhanced provisions to combat ‘social dumping’ (the practice of employing cheaper overseas labor to undercut domestic wages).

And, this year, the new Polish Presidency of the EU Council is expected to advance the proposed EU Directive on Anti-Corruption.

In the U.S. the Trump administration may bring a significant shift in U.S. enforcement priorities.  National security interests will remain central to the U.S. enforcement regime, with the targets of those interests potentially shifting away from Russia and towards China and other jurisdictions.

In China we are seeing more encounters with the Communist Party of China’s (CPC) disciplinary arm in anti-corruption matters involving foreign entities or foreign investors in PRC.

China has also started to challenge publicly the trading decisions of foreign owned companies under its anti-sanctions laws, including its ‘unreliable entity’ mechanism. This can lead to a company being listed on the ‘unreliable entity list’ which can disrupt dealings in China. 

Eve Giles partner added: “All told we are facing a situation of growing complexity globally. A&O Shearman, with its global reach and local depth, is uniquely placed to help businesses steer a course through different legal and regulatory frameworks.”