April 2025: Dentons’ Analysis of Corporate Crimes

The Central Bank of Ireland (CBI) recently announced the establishment of a dedicated Fitness and Probity Unit led by existing experienced CBI staff. This initiative stems from a “Fitness and Probity Review” conducted by Andrea Enria, the former Chair of the Supervisory Board of the European Central Bank. Enria’s independent review, which followed a Financial Services Appeals Tribunal decision highlighting procedural flaws in the fitness and probity approval process, identified key areas for improvement.

Governor of the CBI, Gabriel Makhlouf, accepted the review findings and committed to implementing necessary reforms promptly. The focus on fitness and probity aims to streamline and standardize approvals for crucial financial roles, enhance process transparency, establish a single point of accountability for applications, and expedite application processing.

Ireland recently witnessed its inaugural criminal conviction for insider trading as a shareholder in a pharmaceutical company exploited non-public information to sell shares before repurchasing them at a reduced price. The offender pleaded guilty to an offense under the European Union (Market Abuse) Regulations 2016, receiving an 18-month suspended prison sentence and a €69,000 fine. Additional news surfaced as the Gardaí arrested a wealthy stock market expert during their investigation of insider trading.

Furthermore, a Dublin-based stockbrokers firm faced a €452,790 penalty from the CBI for failing to report suspicious transactions as mandated by insider trading regulations. Investigation revealed multiple instances between September 2017 and May 2022 where the company’s surveillance system flagged questionable deals that went unreported. This enforcement signals a proactive shift towards scrutinizing and penalizing insider trading violators in Ireland, an area historically marked by minimal prosecutions.

In response to Russia’s destabilization of Ukraine, the EU has extended its sanctions regime through a 15th package in December 2024. These measures target key sectors of the Russian economy to impede financing for the ongoing conflict. Noteworthy facets of the sanctions include restrictions on Chinese actors supplying military components to Russia and the addition of entities evading export limitations to bolster Russia’s military capabilities.

Moreover, the introduction of the Markets in Crypto-Assets Regulation (MiCAR) enforces uniform market rules for crypto-assets in the EU. This regulation aims to harmonize rules, enhance consumer protection, ensure financial stability, and prevent market abuse within the crypto sector. Existing Virtual Asset Service Providers in Ireland must transition to MiCAR-compliant authorization, with an operating grace period until December 30, 2025.

The enactment of the Companies (Corporate Governance, Enforcement and Regulatory Provisions) Act 2024 on December 3, 2024, bolsters the Corporate Enforcement Authority’s (CEA) enforcement capabilities. The CEA has been granted enhanced powers to gather information for investigations, including the authority to request additional details from auditors concerning indictable matters.