Press Release
07 June 2007
Myths and realities: McGrigors warns corporates on the threats of extradition and legal rights for British Citizens
Regularly reviewing internal procedures and knowing the relevant criminal law for the territory in which a company is doing business are just two of the measures that can be taken by companies to mitigate the risk of extradition, the subject of a seminar held by UK law firm McGrigors LLP.
The firm hosted the seminar, “Extradition to the US for Financial Crimes” for London-based clients to discuss the latest shifts in both US and UK extradition laws, how they are implemented in the respective jurisdictions and the rights of British Citizens facing extradition. Referencing recent high-profile cases such as the NatWest Three, as guest speaker, Jonathan Fisher QC presented the myths and realities of extradition to the US.
He explained how in the UK we will take jurisdiction of a case where a "substantial measure" of the activities constituting a crime takes place within the UK. The historical position in the US is the economic theory test; if it affects the economy of a state, then it's their jurisdiction. Due to the Federal set-up of the US, their laws have always been structured to look beyond state boundaries, and now they can go beyond those boundaries to other countries. Jonathan Fisher QC used the example of the US offence of "Wire Fraud" a sufficiently broad term to embrace criminal activities where there is any impact on US interests. The question has been raised whether even as little as one email passing through a US server could be enough to trigger jurisdiction.
Commenting on the seminar, Katharine Davies of McGrigors said, “In recent years, the real threat of extradition has been highlighted through cases such as the NatWest Three. Many board directors used to be of the opinion that it was not a concern for them as directors based outside the United States but the broadening of the extradition process since 9/11 and the United State's subsequent enthusiasm for enforcing extradition laws have greatly increased their potential liabilities and exposure.”
“In light of legislation such as Sarbanes-Oxley, we feel that it is vitally important that company directors are fully aware of their legal rights and responsibilities particularly if they have offices located in the US or have a US listing. Every company in this situation should rigorously and regularly review their internal procedures and familiarise themselves with the relevant criminal law which applies in the territory in which they are doing business. In addition, they should ensure that their Directors and Officers insurance policies cover US interests and any potential cost of bail!”
For further information please contact:
Louisa Hollins
Financial Dynamics
Telephone - +44 (0) 20 7269 7108
Email - Louisa.hollins@fd.com
Andy Peat
Financial Dynamics
Telephone - +44 (0) 20 7269 7185
Email - andy.peat@fd.com