Category Financial Crime

JMLSG proposes credit union and brokerage services updates

JMLSG has published proposed revisions to the chapters on credit unions and brokerage services to funds, in part 2 of its guidance. The updates aim to describe in more current terms what risks the sectors face and how to identify who customers are. The changes to the credit union chapter explains the lower risk nature […]

EP upset over rejected AML blacklist

The European Parliament has called for urgent resolution of the debate between the EU Council and Commission on the new proposed AML blacklist. The EP had previously rejected 2 submissions by the Commission on the grounds they were not sufficiently autonomous and had supported the Commission in the development of its new methodology. It “regrets” the […]

OFSI updates on sanctions approach

OFSI has updated its website to reflect the latest legislation and guidance on how the UK will implement on the one hand EU and on the other UN and domestic sanctions in the event of a no-deal Brexit.  Legislation has been made under SAMLA to take effect on a no-deal Brexit in relation to Burma, […]

WBD boosts expertise with white collar partner

Womble Bond Dickinson is delighted to have expanded its offering in the financial services and insurance sectors with the hire of white collar crime partner, Audrey Koh. Audrey has substantial experience of advising clients across many jurisdictions, in particular those based in the UK, US and Europe.  Further information about Audrey can be found here.

Lords Committee praises Bribery Act

The Select Committee on the Bribery Act has published its post-legislative scrutiny report, which concludes the Act is “exemplary”.  Enquiries and evidence have shown it to be a piece of law that works well and that other countries should follow. The only real criticism was to highlight that the Government should give better guidance to […]

Treasury Committee reports on AML and sanctions

The Treasury Committee has published a report looking at AML supervision and sanctions implementation, as a response to the inquiry into Economic Crime. The report covers the elements of the inquiry that addressed AML and the sanctions regime. It looked both at the scale of crime and how regulation addresses the risks. The report makes several interesting […]

Council rejects high risk list

The EU Council has unanimously rejected the Commission’s updated list of high risk third countries. It said the proposal was not established in a “transparent and resilient process that actively incentivises affected countries to take decisive action while also respecting their right to be heard”. The Commission will now have to start again.

BoE and FCA update on Brexit approach

BoE and FCA have updated their respective websites with coordinated information on their approach to a hard Brexit. BoE has published a series of materials setting out its updated plans to its supervisory approach to a hard Brexit. The papers cover: transitional relief for firms that will broadly (with exceptions) last for 15 months from exit […]

Treasury updates on NCCTs

Following FATF’s meeting last week, Treasury has issued an update on the list of NCCTs to reflect the FATF conclusions.

No more Rolls Royce or GSK prosecutions

SFO has announced that, having considered all the evidence, there is either an insufficient likelihood of success, or it is not in the public interest, for it to bring any further prosecutions relating to the Rolls Royce or Glaxo Smith Kline investigations.

Sara Lawson to be SFO General Counsel

SFO has announced its appointment of Sara Lawson as its new General Counsel.  She will take up the post in May, replacing Alun Milford.

FATF plenary updates AML control reviews

At the most recent plenary meeting, FATF as usual reviewed its list of jurisdictions with AML deficiencies.  Although still disappointed with Iran’s lack of progress, it has continued the suspension of countermeasures, so that countermeasures apply in relation to North Korea, and EDD on a risk-based approach in relation to Iran. Otherwise, the countries with strategic […]

OFSI imposes first sanctions breach fine

OFSI has imposed its first publicised financial penalty for breach of sanctions restrictions. It fined Raphaels Bank £5,000 for dealing with £200 of a person designated under the Egyptian asset freezing legislation. The bank notified OFSI as soon as it became aware of what it had done and, as a result, what would have been […]

Select Committee calls for Overseas Territories BO registers

The House of Commons Foreign Affairs Committee has published a report calling for beneficial ownership registers to be introduced in all British Overseas Territories by the end of 2020. The powers to do this were introduced in SAMLA and have caused controversy, with some territories saying the introduction of registers would adversely impact their financial services sectors […]

HMRC publishes self-reporting guidance

HMRC has published guidance for firms  on self-reporting a breach of the CFA provisions on failure to prevent facilitation of tax evasion. HMRC stresses that: reporting must be done only by an authorised representative of the firm reporting is not a requirement, and is not a defence however, it may be viewed as part of […]

EBA investigates regulators over Danske Bank

EBA has opened a formal investigation into possible breaches by the Estonian and Danish financial services regulators of EU law in connection with the links of Danske Bank and, in particular, its Estonian branch, with money laundering. The investigation follows a request from the European Commission, pointing out the duties of home and host state […]

Court rules that Brexit is not frustrating event for a lease

The High Court has ruled that a European agency cannot terminate the lease of their premises at Canary Wharf on the basis of Brexit being a ‘frustrating event’.  Our article provides more detail on this case and its implications.

Treasury makes Brexit MLR changes

Treasury has made a statutory instrument making necessary changes to the MLRs consequent on a hard Brexit. The instrument took effect on 13 February and will take effect on exit day.  Among other things, the changes: remove references to any EU authority; amend references to EU legislation to state either that the reference is to […]

FCA calls for prevention over cure in market abuse

Julia Hoggett has spoken on FCA’s views on compliance with market abuse prevention laws. She stressed the importance of a regulatory system (both regulators and firms) working to prevent abuses from happening, as this will always be more effective than a system that merely detects when an event has happened. She noted that firms will […]

MLROs.com financial crime update

Thank you to all of you who attended our first quarterly breakfast briefing. The next briefing will be on 19 June 2019. To book, please visit the MLROs.com site.

Sign up to our repeat SMCR workshop

We are delighted to be hosting a re-run of our sell-out half day workshop on the SMCR for solo-regulated firms. This Compliance Register seminar, at which Emma Radmore, Roseyna Jahangir and Michelle Chance will speak takes place at our London offices on 1 May. To book, please visit the Compliance Register website. We will also […]

Treasury Committee publishes FOS economic crime evidence

The Treasury Committee’s hearing on economic crime continues, and it has recently heard evidence from FOS. FOS received 8,500 complaints about fraud and scams in 2017/18 and has received over 10,000 this financial year to date. Around a quarter of fraud and scam cases are about APP fraud and another quarter about unauthorised payments.  FOS […]

Commission updates advice on high-risk countries

The Commission has published a fact sheet on its new list of high-risk third countries for the purposes of MLD4.  The new list contains 12 jurisdictions from the FATF list: the Bahamas, Botswana, North Korea, Ethiopia, Ghana, Iran, Pakistan, Sri Lanka, Syria, Trinidad and Tobago, Tunisia and the Yemen, and 11 additional jurisdictions: Afghanistan, American […]

TI publishes latest CPI

The latest Corruption Perceptions Index contains few shocks, but a few pithy observations from Transparency International.  The top 10 includes 4 Nordic nations, and comprises Denmark, New Zealand, Finland, Singapore, Sweden, Switzerland, Norway, the Netherlands, Canada and Luxembourg. The UK is joint 11th, with Germany. All these countries scored 80 or more. At the bottom, […]

Commission makes MLD4 RTS on third country risks

The Commission has published the final form of RTS under MLD4 aimed at better and more consistent measures in approaching ML/TF risk where credit or financial institutions have a presence in a third country whose laws do not permit group-wide policies. The RTS set the ideal minimum standards groups should attain, and how they should […]

Solicitor fined for AML breaches

The Solicitors Disciplinary Tribunal has fined Khalid Sharif, a director and solicitor at Child & Child, who was also the firm’s MLRO £45,000 for failings under the (then) 2007 MLRs, which were also breaches of SRA Principles and rules. It found that, for just over a year, Mr Sharif: failed to take any or any adequate […]

FCA makes new rules

FCA’s latest Handbook Update lists rules made in December and January.  The key changes: amend the rules on PCAs and Overdrafts from 18 December 2019: these changes amend BCOBS and CONC to tackle low levels of consumer awareness of and engagement with overdrafts; amend DISP to require lenders and sellers to write to certain Plevin complainants […]

SFO announces Tesco DPA

SFO has published the terms of a DPA it has entered into with Tesco Stores Ltd following events in 2014 which resulted in the company creating a false account of its financial position by overstating its profits. As part of the DPA, which was agreed in 2017 but in relation to which reporting restrictions have […]

Treasury writes to Treasury Committee on no-deal planning law

The Treasury has written to the Treasury Committee enclosing a draft of secondary legislation that would give temporary transitional powers to the UK financial regulators in the event of a no-deal Brexit that would enable firms and the financial markets to function properly while requirements stemming from EU laws are embedded into UK laws. The […]

Wolfsberg Group publishes sanctions screening guidance

The Wolfsberg Group has published new guidance on how financial institutions should carry out their sanctions screening. It says its guidance is intended to help institutions see how screening can form an effective part of a wider sanctions compliance programme. The guidance looks at: what screening is – and the fundamentals of transaction and customer […]

New Financial Services head at Womble Bond Dickinson

We are delighted that Jonny Williams has joined the financial services regulatory team at Womble Bond Dickinson UK. More information on Jonny and his appointment can be found here.

SAR numbers increase but TI unimpressed

The NCA has reported a rise in SARs from the private sector in the past year.  It reports nearly 464,000 SARs received and processed in the year covered by its report.  However, Transparency International says this should not mask the failings in the system. TI is critical of the scarce resources and out of date system […]

HMRC updates MLR help pages

HMRC has updated its website in respect of money laundering supervision. The updates include the addition of webinars on firms’ obligations and how HMRC applies its supervisory duties.

JMLSG updates guidance for MLR changes

JMLSG has updated its guidance to take account of changes to the MLR 2017 that came into force on 10 January. The changes ban firms from setting up anonymous accounts and passbooks or providing anonymous safe-deposit boxes, and direct that CDD take place on all anonymous accounts, passbooks and safe-deposit boxes in existence on that date, […]

Economic Task Force meets and pledges SARs reform

The first meeting of the Government’s task force on economic crime has been chaired by the Home Secretary and the Chancellor. The Government plans that the Economic Crime Strategy Board will meet twice a year and will include senior representatives from Barclays, Lloyds and Santander as well as from UK Finance, the NCA, SRA, Accountants […]

FCA publishes sector views

FCA has published its “Sector Views” setting out its observations from monitoring its 7 selected sectors of: retail banking retail lending general insurance and protection pensions and retirement income retail investments investment management and wholesale financial markets It produces this review to inform its overall approach and ultimately its business plan. The studies identify where […]

ESAs advise on crypto approach

ESMA and EBA have published papers on ICOs and crypto-assets. The ESMA paper clarifies which crypto-assets currently qualify as financial instruments and provides its views on gaps and risks. The paper identifies several of these: where assets do not fall within the scope of MiFID financial instruments, there are substantial investor risks.  ESMA says that […]

Government updates Blocking Order regulations

The Extraterritorial US Legislation (Sanctions against Cuba, Iran and Libya) Protection of Trading Interests)(Amendment) Order 2018 will take effect on 1 February 2019. It updates a 1996 order to reflect updates to the EU Blocking Regulation – which makes it an offence for EU companies and individuals to comply with US sanctions imposed on Cuba, Iran […]

EU Council agrees greater EBA rule in AML action

Following complaints by banks that AML rules are not effectively and consistently supervised, the Council has agreed to give EBA greater powers over supervision, including allowing it to perform risk assessments on competent authorities and addressing decisions directly to individual banks as a last resort. The proposals must now be agreed with the EP.

FCA updates on MAR compliance

The latest edition of Market Watch outlines FCA’s views on industry implementation of MAR. FCA stresses the importance of industry participants properly calibrating their risk assessments to the markets and asset classes they operate in and showing it is responsive to changes. It notes the importance of strong judgment in market abuse compliance and emphasises […]

FOS consults on plans for 2019/20

The FOS has published a consultation on its plans and budget for 2019/2020. It notes that from April 2019, its jurisdiction will be expanded by the addition of two significant areas of work: complaints made by SME customers of financial services, and complaints made by customers of claims management services. The consultation questions include inviting […]

Home Office updates on anti-corruption strategy

The Home Office has updated on the first year’s progress against the UK’s anti–corruption strategy. The update concludes that the commitments made have largely been met, and that the UK is on track to deliver its remaining commitments. including those due in 2019, notwithstanding Brexit. The report highlights a number of points of interest to […]

Financial Crime Prevention in 2018

We have written an article for Financial Regulation International on financial crime prevention developments in 2018.

FCA finalises new financial crime guidance

FCA has now finalised its guidance on insider dealing and market manipulation within the Financial Crime Guide. It received 8 responses to its consultation, generally positive. However, some respondents raised concerns about: mandating a duty to prevent these crimes; the risk of firms tipping off by taking some of the actions the guidance proposed; where […]

EBA publishes opinion on eIDAS certificates under PSD2

The EBA has published its Opinion on how eIDAS certificates and be used under the SCA and CSC RTS under PSD2. The Opinion: clarifies that it is the ASPSPs that should choose whether a Qualified certificate for electronic seals (QSealC) or a qualified certificate for web authentication (QWAC) should be used for identification purposes; suggests […]

BEIS confirms AML safeguards for partnerships

BEIS has published its response to its consultation on the reform of Limited Partnership law.  It has confirmed new measures, applicable to all limited partnerships in the UK (and, for Scottish Limited Partnerships, in addition to the beneficial ownership reportingrequirements previously introduced), to: require anyone registering a Limited Partnership to show they are registered with an […]

FCA reports on cyber review findings

FCA has published the results of its study of cyber-resilience and security in 20 asset management and wholesale banking firms. Its review comprised firms of varying size, scale, operating models and geography. The review comes with many caveats, but the key messages include: Boards and Management Committees still have limited familiarity with the specific cyber-risks […]

Tribunal rules on Prodhan

The Upper Tribunal has ruled on an application by Mohammad Prodhan, former CEO of Sonali Bank (UK).  Mr Prodhan contended that FCA was time-barred from taking action against him. He also applied for a direction for his anonymity in proceedings of the Tribunal and the FCA. Mr Prodhan alleged that FCA had not issued him with a Warning […]

Companies House to do sanctions checks

Companies House has announced it now carries on additional checks on certain applicants for registration, to guard against designated persons using economic resources such as companies in an attempt to get round sanctions restrictions. From 12 December, Companies House will check applications from UK companies, European Companies, LLPs and SLPs, to assess the name, address, […]

Charity Commission publishes sanctions alert

The Charity Commission has warned charities that operate in Syria or Turkey of the dangers of aid passing through the Bab Al-Hawa crossing. There have been reports that the crossing is under the control of Al Qa’ida which means that charities and their partners that use it could inadvertently be funding that organisation and thereby […]

FATF publishes UK mutual evaluation

FATF has published the long-awaited mutual evaluation report on the UK’s measures to combat money laundering and terrorist financing. The report notes that, because of the exceptionally large funds flow through the UK financial sector and the risks that some of these have links to crime and terrorism, there is a strong understanding of the […]

FCA decides to fine former Sonali CEO

FCA has published a decision notice setting out its proposal to find Mohammad Prodhan, the former CEO of Sonali Bank (UK) Ltd £76,400 in relation to the bank’s AML systems and controls. Mr Prodhan was responsible for the establishment and maintenance of effective AML systems and controls and FCA considered that between 2012 and 2014 […]

ECB publishes cyber resilience expectations

ECB has published its expectations on financial market infrastructures in terms of cyber resilience oversight. Its expectations are based on CPMI/IOSCO guidance and is aimed at providing the FMIs with clear steps on how to operationalise and enhance the guidance as well as providing supervisors with a clear remit for engaging with FMIs and assessing […]

Treasury makes SAMLA Regulations

Treasury has made the Sanctions Review Procedure (EU Exit) Regulations 2018. The Regulations, made under SAMLA, come into force on 7 January 2019 and address the mechanics of requesting reviews, variations or revocations of designations made under the Act.

Standard Bank DPA comes to an end

SFO announced that the first DPA, agreed with what is now ICBC Standard Bank plc for breach of s7 Bribery Act, has come to an end after the bank successfully complied with its terms. The DPA lasted for 3 years. Its terms included payment of compensation and disgorgement of profits as well as a fine, and […]

FCA publishes cyber resilience report

FCA has published the results of its survey on tech and cyber resilience, which showed that nearly half of all firms don’t upgrade or retire old IT systems in time, and only just over half say they can measure the effectiveness of their information asset controls. Megan Butler, speaking about the report, said that FCA […]

1st SAMLA commencement order made

The first Commencement Order under the Sanctions and Anti-Money Laundering Act 2018 has been made. It brings into force the majority of the sanctions provisions in the Act that enable Ministers to make and implement sanctions. The rest of the Act, including the repeal of existing legislation, will be the subject of a separate Order, […]

SFO elaborates on bribery and DPAs

Matthew Wagstaff has spoken on SFO’s priorities and resourcing, and the successes of its collaborations with other enforcement agencies, particularly the DOJ. He spoke of SFO’s perception that the s7 Bribery Act offence has been a big success, as has been the ability generally to hold senior management to account. He moved on to discuss […]

FCA speaks on AI and financial crime

Rob Gruppetta has spoken on FCA’s views on the use of innovation, data and algorithms to help it in its supervision of, and approach to, financial crime prevention. He said that FCA is always open to innovation, but that it should not be approached without scrutiny. He highlighted FCA’s TechSprints (or “hackathons”), one of which […]

FCA Speech on key issues identified by the Cryptoassets Taskforce

The FCA has published a speech by Christopher Woolard, Executive Director of Strategy and Competition at the FCA, delivered at the Regulation of Cryptocurrencies event on 20 November 2018. The speech highlights the key issues identified by the Cryptoassets Taskforce (consisting of the FCA, HM Treasury and the Bank of England) in its report published at the […]

Further EU Exit draft regulations published

The latest batch of draft SIs published under the EU (Withdrawal) Act to ensure continuity of legal framework in the event of a no-deal Brexit relate to: Venture Capital Funds; Social Entrepreneurship Funds; and Money Laundering and Transfer of Funds.

Leveson and Osofksy give evidence in Bribery Act enquiry

Sir Brian Leveson and Lisa Osofsky (among others) were listed to give evidence to the Bribery Act Committee. They were expected to be asked questions such as: whether a company that self-reports at an early stage should be offered a DPA as a matter of course; the truth in a belief that some of the […]

ESMA updates MAR FAQs

ESMA has updated its FAQs on the Market Abuse Regulation, adding new questions on trading restrictions for persons discharging managerial responsibilities.

FSB publishes Cyber Lexicon

The Financial Stability Board has published a “cyber lexicon“, comprising a set of around 50 core terms related to cyber security and cyber resilience in the financial sector.

FCA publishes financial crime data

FCA has completed its first financial crime survey.  It intends to carry out the survey annually, using the Financial Crime Return. Over 2,000 firms were required to file the return, and FCA looked to establish: the number of customers that pose a higher risk of financial crime: Firms identified 120,000 PEPs and 11,000 non-EEA correspondent […]

Commons launches sanctions policy inquiry

The Foreign Affairs Committee in the Commons has launched an inquiry on the future of UK sanctions policy. Given SAMLA’s Royal Assent, the Committee is to look at different options for the UK’s sanctions policy post-Brexit. It is calling for written submissions on several elements of sanctions regimes, including views on the advantages and disadvantages […]

SFO warns firms on dangers of hiding

Hannah von Dedelszen has spoken on how companies that choose to self-report can engage with SFO. She stressed that being open, honest and transparent is the key.  she noted some firms operate “smoke and mirrors”, involving admitting some things but hiding more major issues. She said any firm reporting must do so properly. Going forward, […]

Regulators hold 2018 resilience exercise

BoE, Treasury and FCA have hosted what has now become a regular one day exercise to test the financial sector’s resilience to a major cyber incident impacting the UK.

Law Society responds on SARs proposals

The Law Society has responded to the Law Commission’s consultation on reform of the SARs regime. It says the proposals, in the main, do no more than “tinker around the edges” of the issues. It says some of the more radical proposals, such as adopting a serious crimes approach instead of an all crimes approach, […]

FCA publishes new Market Watch

The latest edition of Market Watch focuses on “flying prices” and “printing trades” – where firms communicate to clients that they have bids or offers that are not actually supported by an instruction and then communicate that a trade has taken place when it has not. This risks trading decisions being made based on misleading […]

Up next from FCA

FCA’s latest Policy Development Update lists a number of publications due before the end of the year: policy statement on regulating CMCs policy statement on RTS and guidelines under PSD2 rates proposals for covering the costs of OPBAS review of permitted links for insurers in relation to Patient Capital and a discussion paper on Patient […]

HMRC updates AML penalty guidance

HMRC has updated its guidance on how it takes civil measures for breaches of AML requirements.  The guidance not only sets out HMRC’s approach, which is to promote compliance and prevent non-compliance, but then to respond to any non-compliance in a way that will encourage sustained future compliance but also explains how it will use […]

UK Finance comments on sanctions regime

UK Finance has submitted a note to the Economic Crime enquiry on how to improve the effectiveness of the sanctions regime. It says its members regard SAMLA as a necessary piece of legislation which is largely as expected. It recognises that operating outside the EU framework might lead to greater flexibility, and makes some suggestions […]

Cryptoassets task force publishes report

The Cryptoassets task force, led by Treasury, has published its report on the UK’s policy and regulatory approach to cryptoassets.  The report looks at the policy and regulatory implications of DLT and cryptoassets and comments on the considerable risks as well as the potential benefits. Now the Task force will consult on a number of initiatives, specifically: […]

FATF publishes risk-based guidance for the life insurance and securities sectors

FATF has published Guidance to a risk-based approach (RBA) to AML and CFT in the life insurance and securities sectors. The Guidance: outlines the key elements involved in applying a RBA to AML/ CFT associated with life insurance sets out the types of securities providers that may be involved in a securities transaction and their […]

Treasury updates AML advisory

Treasury has updated its periodic AML advisory notice to reflect the conclusions from the FATF plenary meeting. The notice reiterates the expectation that firms will: apply EDD and countermeasures in respect of North Korea apply EDD in respect of Iran and take appropriate measures to minimise risks in respect of the Bahamas, Botswana, Ethiopia, Ghana, […]

IFF surveys firms’ approach to Machine Learning in the Anti-Money Laundering space

The Institute of International Finance has published a short form summary report following a survey it conducted of 59 regulated firms. In particular, the study found that the use of machine learning techniques is spreading across the industry, and is being used to gain greater and faster insights to be reviewed by dedicated AML analysts, […]

FCA evaluates bringing additional benchmarks into the regulatory and supervisory regime

FCA has today published Evaluation Paper 18/2 on the impact of bringing additional benchmarks into the regulatory and supervisory regime. The paper is the second of a new series of FCA evaluations on its past interventions. Background Misconduct and benchmark manipulation cases and FSA investigations led the Government to ask Martin Wheatley to establish an […]

FATF holds plenary

At FATF’s latest plenary meeting, in Paris, the US presidency discussed: streamlining FATF; strategic initiatives, such as further statements on monitoring of terrorist funds, amendments to FATF Recommendations to address regulation of virtual assets and future work on proliferation financing; peer reviews and review of jurisdictions with strategic deficiencies. The UK report is expected to […]

Court rules on inspection of SARs

The High Court has delivered a judgment in David Lonsdale v National Westminster Bank PLC.  The bank had made several SARs in relation to Mr Lonsdale and companies he was involved with and, as a result, had frozen all relevant accounts. After Mr Lonsdale applied to the court, the bank lifted the freeze. The next […]

Treasury starts chemical weapons sanctions regime

Treasury has enabled a regime to implement the EU Regulation on financial sanctions against persons, entities and bodies involved in proliferation and use of chemical weapons. There are not any designated persons on the list as yet.

EU adopts measures on criminal sanctions for money laundering

The EU has adopted a Directive on criminal sanctions for money laundering. The Directive: sets minimum requirements for Member States’ laws on defining criminal offences and sanctions in relation to money laundering; imposes a maximum 4 years’ imprisonment with the possibility for additional civil and administrative sanctions; introduces the possibility of holding legal entities liable […]

FATF publishes scoresheet

FATF has published its updated consolidated assessment ratings, based on reviews of its members AML/CFT measures after the 4th round of reviews. All countries are graded on methodology and technical compliance.  The UK does not yet feature in the table as the 4th round report for it has not yet been published.

OFSI publishes annual review

OFSI has published its annual review covering the period from April 2017-March 2018.  The review covers: that 29 regimes were implemented during the year, with the most active list by far being North Korea (with 96 additions, and other regimes accounting for less than 30, but the lists with the largest number of sanctioned targets […]

First UWO stands up in court

The respondent to the first Unexplained Wealth Order granted under the Criminal Finances Act 2017 failed in an appeal against it. NCA had obtained the order in February, and it was appealed in July. The respondent is the wife of a banker from a non-EEA country. £22m of UK property has been frozen, and the respondent […]

FCA publishes financial crime e-money review

FCA has published its Thematic Review into money laundering and terrorist financing risks in the E-money sector. Its review covered 13 firms and focused on e-money products including prepaid cards and digital wallets, but not money remittance services or any services that fall outside FCA’s regulatory remit (such as exempt cards). FCA found the firms […]

FCA fines Tesco Bank for failing to prevent cyber attack

FCA has fined Tesco Personal Finance plc £16,400,000. It found the bank failed to exercise due skill, care and diligence in protecting its PCA holders against a cyber attack that took place in November 2016.  As a result, it breached Principle 2 by failing to act with due skill, care and diligence. When the cyber […]

PSR welcomes draft APP reimbursement code

The APP Scams Steering Group, set up by the PSR, is consulting on a draft industry code to reimburse victims of APP scams. The code sets standards for industry to meet to help get appropriate treatment for customers. The code proposes, among other things, that where a consumer has met their requisite level of care […]

Latest Market Watch focuses on transaction reporting

FCA’s latest Market Watch focuses on market conduct and transaction reporting issues. It follows up on previous editions, which looked at FCA’s conclusions from a series of supervisory visits on suspicious transaction reporting. FCA had been concerned about over-reliance on “out of the box” alert calibration and that surveillance was not very developed for some asset […]

Commons calls for crypto-asset regulation

The Treasury Committee has published a report, in which it describes its unanimous support for regulation for the “Wild West” crypto-currency market. The report outlines all the problems and dangers the market presents and calls for proportionate regulation, which could improve customer outcomes, reduce some of the risks and see the UK become well placed […]

FCA bans former Deutsche trader

FCA has confirmed its ban on Christian Bittar, formerly interest rate derivative trader at Deutsche Bank. It found Mr Bittar requested  EURIBOR submitters to make high or low submissions, both internally and externally, so that he could benefit his own and sometimes other traders’ profitability. Mr Bittar was convicted and imprisoned for his actions, otherwise […]

Ringleader sentenced in the FCA’s largest fraud prosecution

Michael Nascimento, the controlling mind of a £2.8m investment fraud was sentenced to 11 years’ imprisonment in the Southwark Crown Court. Between July 2010 and April 2014, members of the public were cold-called and subjected to high pressure sales tactics to persuade them to purchase shares in a company that owned land on the island of Madeira. […]

Andrew Bailey and Charles Randell speak at FCA Annual Public Meeting

The FCA has held its annual public meeting, at which it reviews the year past, talks about key priorities for the year ahead and takes questions from the public. Charles Randell, who was chairing his first Annual Public Meeting, opened the meeting by: noting that the demands of Brexit preparation meant that they were forced […]

New SFO chief speaks on plans

Lisa Osofsky has given her first speech since taking over as SFO Director. She spoke of her past, as a federal prosecutor and then working in financial institutions.  Her speech focused on how SFO has now successfully used DPAs and how she plans to use many more.  She noted that SFO will look at whether the company has […]

OFSI reminds on frozen asset reporting

OFSI has reminded all firms that hold or control funds or economic resources belonging to, owned, held or controlled by a designated person to provide a report to OFSI by 12 October. The report should cover both the UK and overseas where they are subject to UK financial sanctions legislation and should report the value […]

FCA publishes final notices on client money

The FCA has published final notices in respect of One Call Insurance Services Limited and its majority shareholder John Radford for breaches in relation to client money and assets in the general insurance and protection sector. The final notices follows the decision notices that we reported on in January 2018. As planned, the FCA has fined […]

HMRC updates on AML civil actions

HMRC has published its guidance on civil measures it can take to address non-compliance with AML requirements.  The guidance looks at HMRC’s role under the 2017 MLRs and how it will use its powers under those Regulations and under the CTA. The note addresses civil measures, but HMRC stresses that it may treat any breach […]

Lisa Osofsky takes over at SFO

Lisa Osofsky has started her 5 year term as SFO Director.

FCA bans individual

FCA has confirmed its ban on Arif Hussein following a decision of the Upper Tribunal published in June.  Mr Hussein was a derivatives trader with UBS, who engaged in internal chats with a UBS trader-submitter knowing that it would be improper to participate in conduct intended to influence UBS’ LIBOR submissions.  FCA found that Mr […]

Regulators launch new campaign to tackle pension scams

The FCA and the Pensions Regulator have launched a joint advertising campaign to raise awareness of pension scams, following research they have conducted which shows that pension scam victims each lost an average of £91,000 in 2017. The campaign, ScamSmart, is aimed at individuals aged 45-65 who are the group most at risk of pension […]