Executive Summary
- The Public Institution for Social Security (PIFSS) seeks to amend its claim against the Man group companies under Article 102(2) of the Swiss Penal Code, alleging corporate liability for bribery of a foreign public official.
- The claim centers on secret commissions paid to Mr Fahad Al-Rajaan via intermediary Mr Mohammad El Ghazzi, with a key dispute over Man’s knowledge of these payments.
- PIFSS aims to expand its bribery case to include alleged failures in Man’s compliance measures prior to 2011, particularly regarding due diligence on intermediaries.
- Man opposes the amendments, citing the need for additional disclosure, new witness evidence, and expert testimony, complicating the trial process.
Sanctions Highlights
- The case implicates compliance with anti-bribery and anti-money laundering standards under Swiss law, with potential sanctions for failure to implement adequate organizational measures.
- PIFSS’s allegations highlight risks of sanctions under Swiss criminal law (Article 102(2) SPC) for corporate entities failing to prevent bribery.
- The amendments focus on compliance failures before the UK Bribery Act 2010, underscoring evolving international sanctions and anti-corruption regimes.
- Man’s defense involves challenging the applicability of Swiss law and the sufficiency of its compliance programs, relevant to sanction risk assessments.
Emerging Risks
- Expansion of PIFSS’s bribery claim to cover pre-2011 compliance gaps increases litigation risk for Man and potentially other multinational firms with historical compliance practices.
- The need for additional disclosure and new witness evidence may delay proceedings and increase reputational and financial exposure.
- The case underscores risks associated with intermediaries and inadequate due diligence, a common vulnerability in global anti-corruption enforcement.
- Potential cross-jurisdictional legal conflicts between Swiss, Kuwaiti, and UK law complicate risk management and compliance strategies.
Geopolitical Impact
- The litigation occurs within the UK legal system, highlighting the UK’s role as a forum for complex international commercial disputes involving foreign entities.
- The case reflects broader geopolitical tensions around enforcement of anti-corruption laws affecting multinational companies operating across Switzerland, Kuwait, and the UK.
- The invocation of Swiss criminal law in a UK court underscores the increasing extraterritorial reach of national anti-bribery statutes.
- The involvement of Kuwaiti law as a competing governing law adds a Middle Eastern dimension to the geopolitical legal landscape.
Economic Intelligence
- The dispute involves substantial sums linked to secret commissions, indicating significant financial stakes and potential economic impact on the Man group.
- Allegations of inadequate compliance measures may affect Man’s market reputation and investor confidence, with possible downstream effects on share value.
- The case highlights the economic cost of compliance failures and the importance of robust anti-corruption frameworks to mitigate financial and legal risks.
- Protracted litigation and expanded disclosure requirements could increase operational costs for Man and related entities.
Strategic Recommendations
- Man should prepare for extended discovery and consider supplementing witness and expert evidence to address the expanded bribery allegations.
- Review and strengthen compliance programs, particularly regarding intermediary due diligence and whistleblower mechanisms, to mitigate ongoing sanction risks.
- Engage in proactive legal and public relations strategies to manage reputational risks in the UK and international markets.
- Monitor evolving Swiss, UK, and Kuwaiti legal frameworks to anticipate further regulatory or enforcement developments.
- Consider settlement options if litigation risks and costs escalate, balancing financial exposure against reputational impact.
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**Source Notes:**
Case Title: *Sanctions Intelligence Digest*
Link: [https://empyreanprotocol.com/litigation/view/www.bailii.org/ew/cases/EWHC/Comm/2025/1357.html](https://empyreanprotocol.com/litigation/view/www.bailii.org/ew/cases/EWHC/Comm/2025/1357.html)