NCA has published updated guidance and glossary codes for use when making SARs. The booklet includes a checklist, detail on codes, an alphabetical list, examples and an aide memoire.
Author - Emma Radmore
Emma Radmore
AFME calls for crypto supervision convergence
AFME has published a paper setting out recommendations to help deliver consistent regulatory treatment of crypto-assets within Europe. It wants to establish a taxonomy; provide clear expectations for market participants...
OFSI confirms Turkey sanctions regime
OFSI has confirmed that the EU has introduced a sanctions regime relating to Turkey, with a view to designating those involved in unauthorised drilling activities in the Eastern Mediterranean. No names are on the list...
FCA consults on fees
FCA has published its annual consultation on fees and levies. Key changes to the current year’s policy include: introducing a £5,000 pa fee for proxy advisers; using income as the basis for calculating periodic...
Bills not to progress due to election
Parliament has updated its webpages in respect of the Goods Mortgages Bill, the Pension Schemes Bill and the Financial Services Duty of Care Bill. The 2017-2019 Parliamentary Session was dissolved on 6 November ahead...
Basel Committee consults on AML cooperation
The Basel Committee on Banking Supervision is consulting on draft guidelines on interaction and cooperation between prudential and AML/CFT supervision. It wants to enhance the effectiveness of banks’ AML/CFT...
NCA publishes 2019 SARs report
The latest annual report on SARs from NCA highlights: a record number of SARs processed (over 475,000); an increase of over 50% in DAML SARs; and over £131m denied to criminals as a result of DAML requests. Average...
FSB holds Paris plenary
The FSB Plenary met in Paris to review vulnerabilities in the global financial system and to discuss advances in FinTech. The Plenary also agreed its work programme for 2020. Current vulnerabilities The Plenary...
Up next from FCA
FCA’s latest Policy Development Update promises a number of publications before the end of the year, including: feedback on the Investment Platforms Market Study remedies; consultation on policy proposals for next...
PRA to use s166 for regulatory returns
PRA has written a Dear CEO letter to banks on the reliability of regulatory returns. The letter highlights the recommendations of the review into the Co-Op bank – specifically that PRA should consider introducing...
FATF consults on digital identity
FATF is consulting on the use of digital ID systems for CDD. It has published some currently unapproved guidance and is asking for views on a number of key issues. It asks for comment by 29 November.
FCA makes new rules
FCA’s latest Handbook Notice summarises various instruments made at the end of September and October: the Overdrafts (Information and Tools) Instrument 2019 takes effect on various dates to 6 April 2020, and...
SRA calls for more AML action
The Solicitors’ Regulation Authority has updated its warning notice to solicitors, stressing the need to have in place appropriate AML measures. Despite previous warnings, it still found many firms did not have...
Treasury Committee calls for bank action on COP and financial crime prevention
The Treasury Committee has published its response to the second strand of the Economic Crime enquiry, looking at the effects of financial crime on consumers. The report focuses on authorised and unauthorised payment...
Duty of Care Bill starts Parliamentary passage
A Private Members’ Bill started in the House of Lords by Lord Sharkey has had its first reading. The Bill, the Financial Services Duty of Care Bill, proposes amending FSMA to require FCA to make rules requiring...
FCA confirms TPR extension
FCA has confirmed that: firms no longer need to implement their Brexit emergency plans for 31 October; and the TPR window will be open for notifications from fund managers until 15 January 2020 to let FCA know if they...
New AML and sanctions articles
We have written extended versions of FIN posts for Financial Regulation International and Money Laundering Bulletin:
Take care before you charge: acquiring criminal property; and
The third arm of US sanctions?
FCA speaks on future of regulation
Nausicaa Delfas spoke on the future of UK financial regulation post-Brexit. She said FCA continued to prepare for Brexit, whatever form it takes and whenever it happens, and referenced its preparations for a no-deal...
OFSI fines for sanctions breach by phone call facilitation
OFSI has fined a phone carrier company for indirectly facilitating phone calls to an entity designated under the Syrian sanctions regime. Telia Carrier UK Limited indirectly facilitated the calls to SyriaTel, which...
FATF publishes beneficial ownership best practice
FATF has published a report setting out examples of best practices to help jurisdictions establish a satisfactory measure of transparency regarding the identification of the beneficial ownership of legal persons. In...
Treasury updates high-risk jurisdictions
Treasury has updated its AML advisory notice, following the recent FATF meeting. There is no change to the advice on North Korea and Iran. The counties in relation to which Treasury recommends firms take appropriate...
Market Watch on PA dealing concerns
The latest edition of Market Watch sets out FCA’s concerns about how firms police PA dealing by staff. FCA has noted a number of common problems, such as: employees appearing not to understand their firms’...
OFSI introduces Nicaragua sanctions regime
OFSI has set up a financial sanctions regime in relation to Nicaragua. The EU introduced the sanctions on 14 October and they will be in force in the UK from 6 November.
FCA writes to UK Finance on SARs and STORs
FCA has published a letter it wrote to UK Finance in September explaining its responsibilities in relation to SARs and STORs under MAR. The key point the letter makes is to stress that, while FCA works closely with the...
FCA consults on AML crypto supervision costs
FCA is consulting on how it will recover the costs it will incur when it becomes the AML/CTF supervisor for crypto-asset business from 10 January 2020. Treasury has not yet finalised the regulations that will implement...
FCA updates change in control pages
FCA has updated its guidance on how to submit an application for change in control. The page now includes useful tips on what FCA needs to know to deal with the application quickly, and links to all the required forms.
Queen’s Speech suggests post-Brexit FS Bill
Among the list of legislative proposals referred to in the Queen’s Speech is laws that will provide “certainty, stability and new opportunities” for the financial services sector through a Financial...
OFSI publishes annual report
OFSI’s annual review for 2018-2019 highlights: the first imposition of monetary penalties; work to prepare for Brexit; the positive reaction to OFSI in the FATF evaluation; that during the year 32 regimes were...
Commission produces high-risk third countries “non-paper”
ECOFIN has provided the Permanent Representatives Committee with a Commission “non-paper” setting out how it proposes to refine its methodology for identifying high-risk third countries for AML purposes...
Treasury approves JMLSG Chapter 17 changes
Treasury has approved revisions to Chapter 17 of Part 2 of the JMLSG guidance. The chapter covers syndicated lending, and has been rewritten by the Loan Market Association. Among the changes are content that: explains...
Government responds on regulatory perimeter
The Government has published its response to the Treasury Committee’s report on the regulatory perimeter and how it could be refined and should be policed. The report had criticised the lack of a formal system for...
Market Watch Brexit special
FCA’s latest Market Watch newsletter is aimed at helping firms prepare for a possible no-deal Brexit. The edition covers: transaction reporting and the temporary transitional power – but noting firms may...
Up next from FCA
FCA’s latest Policy Development Update heralds the following publications before the end of the year: consultation on investment platforms market study remedies; policy statement on OPBAS fees; consultation on...
ESAs publish AML risk opinion
The ESAs have published their second joint opinion on the ML/TF risks affecting the EU’s financial sector. Its key concerns are around monitoring and reporting of suspicious transactions, particularly for...
ESMA updates MiFID 2 FAQs
ESMA has updated its Q&As on investor protection and intermediaries issues under MiFID 2 and MiFIR. The new questions focus on best execution and disclosure of reports to the public; and on what “ongoing...
ESMA consults on MAR review
ESMA is consulting on its required review of MAR. Its paper looks at many issues including: whether to include spot FX within MAR; differing concepts of inside information and delayed disclosure of it; whether the...
EU Presidency notes AML way forward
The Presidency of the EU has noted the substantial enhancements to the AML/CFT framework over recent years but has nevertheless expressed concern on: differences in interpretation and wide national discretion in framing...
ESMA calls for evidence on product intervention measures
ESMA has launched a call for evidence to look at how effective the product intervention measures on CFDs and binary options have been. ESMA needs to report to the Commission on its experience, and welcomes views of...
FCA fines Pru for non-advised annuity sales failings
FCA has fined the Prudential Insurance Company Limited £23,875,000 (including a 30% discount) for failures in its non-advised annuity sales business. FCA found that, for a 9 year period ending in late 2017, the non...
FCA makes new rules
FCA has published its latest Handbook Notice with new rules. Most of the changes are minor, and update terminology and cross-references. FCA is also making changes to: SYSC and SUP, including adding a new Annex to SUP...
BoE reports on 2018 cyber simulation exercise
BoE has reported on the outcomes of its 2018 sector wide exercise (SIMEX), which tested how the UK finance sector would react to a prolonged and broad cyber attack. The exercise, which took place in real time, involved...
Not POCA “acquiring” to receive monies obtained by fraud
The Court of Appeal, in the case of R v Haque, has allowed an appeal on the point of whether a person commits the offence under POCA of acquiring criminal property when it arrives into his bank account as a result of a...
Treasury approves JMLSG updates
Treasury has approved updated chapters in Part II of the JMLSG Guidance. The chapters now approved are:
credit unions
asset finance
brokerage services to funds.
MEPs criticise poor AML compliance
MEPs say lack of co-operation and poor information sharing between authorities and FIUs are the main obstacles to preventing money laundering, but also say national authorities should have sufficient resource and power...
FCA pleased with MiFID 2 unbundling effects
FCA has published the results of a multi-firm review looking at whether the research unbundling rules brought in under MiFID 2 have improved asset manager accountability over costs. FCA’s research has found that...
Borrower can withhold payment because of risk of US secondary sanctions
The High Court has held that a UK borrower was entitled to withhold payments under a loan from an entity that was a US Blocked Entity for fear of possible consequences from US secondary sanctions that would...
FCA offers Brexit help
FCA has set up a dedicated phone line for firms needing to ensure they are prepared for a no-deal Brexit, and also worked to signpost all its online resources. It expects firms to have planned properly for it. It notes...
FCA updates SMCR resources
FCA has updated its checklists for firms preparing for the SMCR. It has added some text about the submission of Form K. It has also added a section for sole traders to its guidance on conversion from the Approved...
FATF updates compliance table
FATF has published further reports on Iceland, Hong Kong, China and Greece’s AML/CFT measures and as a result updated its consolidated table of assessment ratings.
FCA updates on consultations and feedback
The latest Policy Development Update highlights a number of papers due before the end of 2019: feedback on the investment platforms market study remedies; policy proposals on regulatory fees and levies; permitted links...
FCA publishes quarterly consultation
FCA’s latest quarterly consultation covers a number of minor changes to the rules that will be made only if there is a no-deal Brexit on 31 October, and also other miscellaneous amendments including: minor...
FCA publishes Directory entry form
FCA has published forms and guidance for firms that need to submit data for the new Directory of certain individuals working for financial services firms. The guidance explains what FCA considers to be “customer...
OFSI publishes frozen asset review guidance
OFSI has published guidance on the annual frozen asset review reporting form. The guidance explains the requirement for all persons who hold or control funds or economic resources that belong to or are controlled by a...
Government answers AML questions
In response to questions posed in Parliament, the Secretary of State for the Home Department confirmed that the UK has not opted in to the Directive on criminal sanctions for money laundering our legislation is already...
EBA speaks on AML
Jose Manuel Campa, EBA Chair, spoke to ECON on the importance of consistent application of AML legislation. He explained the ESAs’ current powers, and the guidelines already published. He said EBA is working on...
FCA speaks on skimmers and scammers
Charles Randell has spoken on FCA’s commitment to the Economic Crime Plan and the importance of embedding fraud prevention in the development of new savings and investment policies. He encompassed within...
PRA writes to banks on AML risks
PRA has written a Dear CEO letter bringing banks’ attention to EBA’s opinion on the ML/TF risks in prudential supervision, and confirm it will continue to consider these concerns as part of its prudential...
HMRC cracks down on ML breaches
HMRC has updated its list of actions against businesses that are not complying with the MLR and published details of a £7.8m fine levied on a money transmitter. It imposed the fine on Touma Foreign Exchange Ltd after...
Tabernula defendant imprisoned
As a result of a conviction for money laundering following the “operation Tabernula” investigations, Richard Baldwin has been sentenced to 5 years and 8 months imprisonment. This follows convictions of...
European Parliament Think Tank briefing on AML state of play
The European Parliament’s Economic Governance Support Unit has published a paper that outlines the current initiatives and actions targeting reinforcement of the AML supervisory and regulatory framework in the EU...
FCA updates on Remuneration Code expectations
FCA has written its annual letter to RemCo chairs of Level 1 firms. The letter sets out what FCA has found on accountability, ex-post risk adjustments and diversity and inclusion. The letter: notes the responsibilities...
Law Commission looks into intermediated securities
The Law Commission has asked all stakeholders for their views on how well the current system of intermediated securities works. Its call for evidence, which ends on 5 November, is in response to a request from BEIS to...
CMA takes action over PPI reminder failures
CMA has ordered RBS and Santander to take remedial action after they did not send, or sent inaccurate annual PPI reminders to customers. The banks must now appoint independent bodies to audit their PPI processes and put...
ASA rules share tipping site ad misleading
The ASA has upheld complaints in relation to three websites for Stockmarket Insider, an “investment advisory service”. The websites claimed: “of the thousands of “investment advisory...
ESAs respond on crypto assets
EBA and ESMA have published a joint response to the Commissions’ paper on crypto-assets. The response explains the work the ESAs are undertaking, including an imminent national stock-taking exercise on the...
Tribunal partially overturns FCA on lack of integrity consequences
The Tribunal has delivered its decision on FCA’s proposal to impose a public censure and ban from carrying on any significant influence functions on Andrew Tinney for his actions as COO of Barclays Wealth and...
ASA takes action on misleading crypto ad
ASA has told HDR Global Trading to take down an ad and ensure in future that financial information was set out so as to be readily understood by the audience it was aimed at and that the risks of the relevant...
ASA decisions on gender stereotyping
Nicky Strong has written an article and commented on the ASA rulings on gender stereotyping. You can read her comments here.
NCA gets UWO against Northern Irish woman
NCA served an unexplained wealth order , its 4th in total, on a Northern Irish woman living in London with suspected links to organised crime, in respect of her financing of 6 properties worth over £3m.
Transparency International Annual Plan
TI has published its annual plan for 2019-20. Key points include: the growth of TI to over 50 staff in the past 10 years should now lead to a period of stabilisation; the key successes of last year included the...
FCA updates skilled persons statistics
FCA has released the figures for skilled persons reports it commissioned in Q1 2019/20. It commissioned 9 reports in total – of which 3 related to each of retail lending and wholesale financial markets, 2 to...
FCA publishes SMCR stocktake report
FCA has published the findings of its review on how the SMCR has been embedded in the banking sector. It hopes banks and solo-regulated firms will find the conclusions of use and interest, although it notes the review...
Up next from FCA
The latest version of FCA’s Policy Development Update highlights: expected feedback on Investment Platforms Market Study Remedies by the end of the year; potential policy statement on general insurance value...
Treasury Committee calls for FCA powers on perimeter changes
The Treasury Committee has unanimously called for FCA to be given formal powers to recommend changes to the regulatory perimeter. It says the current informal system allows the grey area between regulated and non...
Market Watch focuses on insider dealing risks
The latest edition of FCA’s Market Watch focuses on FCA’s concerns on access to inside information, following the conviction of a former compliance officer for sharing information. FCA noted that Fabiana...
New FCA webpages on SMCR extension to FCA solo-regulated firms
The FCA has published two webpages with information for regarding the extension of the SMCR to solo-regulated firms. The first page published on 26 July includes a guide for firms, details of how the SMCR applies, a...
FMLC notes uncertainty in MLD5 definition of ‘virtual currencies’
In their (late) response to the consultation of the transposition of the Fifth Money Laundering Directive into UK law, the Financial Markets Law Committee has alerted Treasury to a potentially unintended consequence in...
FATF updates compliance ratings
FATF has published an updated table of assessment ratings. The ratings show how each member has fared in the assessments of compliance with each FATF standard. It has also updated its procedures for its fourth round of...
FCA publishes SMCR final rules
FCA has at last published its final rules on extending the SMCR to solo-regulated firms, including CMCs. It has, in the main, implemented the changes it consulted on in its consultation on “optimising” the...
Regulators tweak exit arrangement rules
FCA has announced an extension to the directions made under its temporary transitional power which it introduced in February. The direction will now give firms until 31 December 2020 to make the necessary adjustments...
Commission calls for better AML measures
The European Commission is not happy with the levels of domestic implementation of various AML/CTF measures in Member States. It has carried out research and issued a Communication and several reports. Key conclusions...
OFSI updates post-Brexit sanctions pages
OFSI has added some more pages to its set of information on sanctions regimes that will apply if the UK leaves the EU without a deal. The new pages cover Burundi and Guinea.
Commission adopts unfair terms guidance
The European Commission has adopted a guidance note on the Unfair Contract Terms Directive. The note covers: the objectives and scope of the directive; key terminology such as “supplier” and...
FCA consults on vulnerable customer guidance
FCA has published a guidance consultation on what it considers the Principles require of firms in terms of fair treatment of vulnerable customers. It thinks firms have made big improvements generally, but now wants to...
FCA fines Standard Life for non-advised sales failings
FCA has fined Standard Life Assurance Limited £30,792,500. The fine relates to non-advised sales of annuities, and sales practices over nearly 8 years. Although the sales were non-advised, FCA found that the firm...
Government responds on Overseas Entities Bill
The Government has responded to the recommendations in the Joint Committee Report on the Overseas Entities Bill. The Government welcomed the Committee’s views, and responded on key points as follows: while taking...
Regulatory framework review underway
The Chancellor has launched the first phase of the Financial Services Future Regulatory Framework review by publishing a call for evidence that looks primarily at how co-ordination between regulatory authorities could...
European Ombudsman supports Commission on AML 3rd country info
The European Ombudsman has published its decision in relation to a complaint brought by a member of the European Parliament whose request to the European Commission to give him public access to various documents...
JMLSG updates on Guidance
JMLSG has thanked all those who responded to its proposed changes on the chapters in Part II of its guidance addressing credit unions and brokerage services to funds. It has now put the finalised chapters to Treasury...
SFO confirms DPA with metals tech firm
The SFO has announced that in 2016 it entered into a DPA with Sarclad Ltd, a technology provider for the metals industry. The DPA related to charges of corruption and failure to prevent bribery between June 2004 and...
Government publishes economic crime plan
The Government, in conjunction with UK Finance, has published its 2019-2022 economic crime plan, setting out how it proposes to progress the priorities agreed by the Economic Crime Strategy Board in January. The key...
ESMA warns CFD providers on undesirable practices
ESMA is still concerned about firms that market, distribute or sell CFDs to retail clients. It has now published a warning to them, saying it is particularly worried about: encouraging retail clients to ask to opt up to...
HMRC updates MLR appeals guidance
HMRC has updated its website with guidance on how to appeal against an HMRC decision, and how it sets penalties. The guidance explains what HMRC may levy penalties for, and what its remedies are. It also explains that...
ESMA updates MiFID 2 FAQs
ESMA has updated its FAQs on MiFID 2 and MiFIR in respect of investor protection and intermediaries. There is a new question on how to classify financial instruments under RTS 27 for best execution purposes when ESMA...
FCA updates on SMCR final rules
FCA has still not made its final rules on the SMCR. It cannot do so until Treasury has published the necessary commencement order. FCA says it has been working with Treasury on this, and has agreed with it a later...
Treasury publishes AML supervision report
Treasury has published its AML and CTF supervision report for 2017-18. The report highlights the UK’s FATF evaluation report – which it notes recognises the UK regime as the strongest assessed to date. But...
FCA publishes annual report
FCA’s Annual Report and Accounts for 2018/19 lists its highlights from the past year, and appends several reports from specific business focuses. FCA notes that alongside deciding over 4,000 applications for...
Treasury Committee wants action against forged signatures
Nicky Morgan has written to the FCA and NCA, asking them to engage with the Bank Signature Forgery Campaign to address the allegations that home repossession and similar documents are not being signed by the authorised...
FCA updates MLR registration page
FCA has updated its page giving guidance to firms that are not authorised but nevertheless require to be registered with FCA for the purposes of the MLRs (such as commercial lenders, financial leasing entities and own...
EBA reports on POG guidance implementation
EBA has reported on how industry has implemented its Product Oversight and Governance arrangements guidelines. It found a mix of good and bad practices. Some of its criticisms were that: often the manufacturer’s...