FIN.

Category - Financial Crime Prevention

EU Commission overhauls AML/CFT rules

The European Commission has unveiled an ambitious package of legislative proposals to strengthen the EU’s AML/CFT rules. The proposals include: a new EU AML/CFT Authority (AMLA) – the new AMLA will coordinate...

CLLS responds on fin proms

The City of London Law Society has responded to FCA’s discussion paper on changes to the financial promotion rules for high risk investments and for firms approving financial promotions. It: is concerned the...

Treasury updates AML advisory

Treasury has updated its advisory notice on high right third countries for AML purposes. The notices follow the FATF updates, and the list replicates the FATF list.  Post-Brexit, Treasury now included the list in...

Dear CEO letter on retail bank AML failings

FCA has finally published the Dear CEO letter it sent to retail banks on 22 May on AML failings. The letter sets out the common themes FCA has observed and highlights its disappointment that it continues to find certain...

Damning report on EU AML efforts

The European Court of Auditors has published a damning report on the EU’s efforts to fight money laundering in the banking sector.  A review found institutional fragmentation and poor coordination at EU level. The...

FATF holds plenary

FATF has held its June 2021 plenary session, at which it finalised a number of reports. Key outputs include: no changes to the highest risk jurisdictions, but Haiti, Malta, the Philippines and South Sudan have been made...

More of FS Act comes into force

The second Commencement Order under the FS Act 2021 brings into force: on 28 June the provisions on forfeiture of money in relation to EMIs and payment institutions, as they extend to Northern Ireland; and on 1 July...

FCA speaks on tough regulation and the future

Nikhil Rathi has spoken on building a regulatory environment for the future. He focused on the opportunities Brexit has given for the UK to tailor its rules. Much of his speech addressed ESG issues, but he noted also...

LSB updates on CRM code review

LSB has published its follow up review of the CRM Code in respect of firms’ approach to reimbursing customers. Provision R2(1)(c) of the Code allows firms to decline reimbursement in specific cases. LSB looked at...

Taskforce reports on regulatory reform

The Taskforce on Innovation, Growth and Regulatory Reform has provided its report on reshaping regulation in the UK to the Prime Minister. The report calls for: a common law approach proportionality in application...

FCA takes 13 firms into new sandbox cohort

FCA has accepted 13 firms into cohort 7 of the regulatory sandbox. It received 58 applications, mainly from firms in the retail investment and retail lending sectors. FCA was interested in proposals that saw more...

Market Watch looks at use of orderbook data

The latest edition of Market Watch explains how FCA uses orderbook data to help conduct surveillance to identify suspected market manipulation.  It uses its own data combined the STORs and other notifications it...

FCA confirms role in RLS

FCA has confirmed its approach to regulating firms in relation to the Government Recovery Loan Scheme that was launched by the British Business Bank on 6 April to replace the BBLs and CBILS which are now closed to new...

PRA speaks on Cyber Risk

Lyndon Nelson has spoken about the steps PRA takes to counter cyber risk. He described how PRA has looked at operational resilience in the context of cyber risk by testing, capabilities and coordination. It has carried...

PSR consults on CoP for all

The PSR has issued a call for views on whether it should direct additional banks, building societies and financial institutions to offer Confirmation of Payee.  Currently only the 6 biggest banking groups offer it.  The...

IAIS consults on AML guidance

IAIS is consulting on changes to its “application paper” on AML and CFT in the insurance industry. The paper was originally published in 2013, and IAIS has revised it in light of various FATF updates and...

SFO publishes business plan

SFO’s business plan for 2021/22 includes nothing of great surprise. Its main priorities remain: investigating and prosecuting the most complex cases of fraud, bribery and corruption; delivering justice, upholding...

EBA consults on AML/CTF database

EBA has published for consultation draft RTS on a central AML/CTF database. The idea is for the database to contain details of weaknesses in systems and controls within individual firms identified by their national...

Treasury updates on economic crime plan

Treasury has updated on the Government’s progress on its Economic Crime Plan. It is pleased to see an improved understanding of the threats to the economy and the moves that have been made to address...

HMRC updates on MLR non-compliance

HMRC has issued its periodical update on businesses that it has found to be non-compliant with the MLRs.  Its latest report covers the quarter from February 2020 – January 2021. The largest fines have been on MSBs...

OFSI blogs on licensing

OFSI has published a blog on licensing under the sanctions regime, prompted by the changes to the UK sanctions regime post-Brexit. The blog gives an overview of the licensing process, including OFSI’s top tips on...

LSB updates CRM Code

The LSB has published updates to the CRM Code following its review.  The new provisions include those on governance and oversight, and will take effect from 14 June 2021.

LSB looks at APP scam prevention

LSB has stressed the importance of preventing APP fraud in the first place, rather than just ensuring customers who suffer can be reimbursed – critical though that is. It notes that the increase in online and...

FS Bill continues in Lords

The Financial Services Bill is scheduled to continue its Report stage in the House of Lords next week, with some further amendments being tabled.

FCA speaks on AML controls

Mark Steward has spoken on the importance of “purposeful” AML controls. He headlined: the current prosecution for failings in systems and controls to monitor and scrutinise significant cash deposits, and the...

OFSI updates guidance suite

OFSI has updated its suite of guidance on financial sanctions, including its guidance on monetary penalties, which incorporates some of the lessons OFSI has learned through its case work. The new guidance will apply for...

Treasury updates high risk jurisdictions list

Treasury has updated its AML advisory notice on high risk jurisdictions. The UK is introducing legislation that will define high risk third countries and will replicate the FATF list, in place of referencing the EU MLD4...

EBA consults on AML guideline change

EBA is consulting on changes to its guidance on risk-based supervision for AML/CFT purposes.  It plans to include practical step-by-step approaches to help regulators understand some of the aspects of supervision they...

NCA updates SARs guidance for supervisors

NCA has published an updated version of its guidance to AML supervisors on submitting better quality SARs. It reiterates the importance of: the SAR being clear and concise, explicitly setting out the reason for...

OFSI updates sanctions penalty guidance

OFSI has published an updated version of its guidance on monetary penalties for breach of financial sanctions, which will apply from 1 April and will apply for all cases where OFSI becomes aware of a potential breach...

FATF publishes RBA guidance

FATF has published guidance for supervisors in applying a risk based approach to supervision of the AML supervised community. It aims to help those supervisors who have traditionally applied rules-based approaches to...

FCA fines and bans trader for market abuse

FCA has fined and banned a former market making trader for market abuse. Adrian Horn, formerly of Stifel Nicolaus Europe Limited executed trades with himself in a series of 129 wash trades in a particular security over...

EBA publishes ML risk opinion

EBA has published its biennial opinion on the ML and TF risks affecting the EU financial sector. The risks cover those of the whole sector as well as parts of it, and cover risks previously identified as well as new...

FCA publishes details of STORs

FCA has published the number of STORs it received in 2020. There was a small dip at the beginning of the pandemic, but the amounts increased as the year went on, peaking at 421 in October, with a total of 3553 for the...

LSB sets roadmap for CRM Code review

LSB has published its planned activities for 2021 including updates on the wording of the CRM Bode and a call for input.  Separate to its original plans it is already working on a review of the provision on its approach...

FATF publishes plenary outcome

FATF has published the outcome of its February plenary meeting. it approved new guidance on risk-based supervision; it will update its guidance on virtual assets and VASPs; it has agreed new guidance on proliferation...

Treasury and FCA discuss perimeter report

Treasury and FCA have met to discuss the September 2020 report on the regulatory perimeter. Discussions focused on: high risk investments and the potential need to review the current exemptions that allow marketing to...

UK Finance publishes sanctions SI analysis

UK Finance has published a detailed study of the differences between the current UK statutory instruments relating to financial sanctions and their pre-Brexit equivalents. It has conducted a comparison to assess the...

CPI 2020 shows mixed results

Transparency International has published the 2020 CPI, which shows that most countries have made little to no progress in tacking corruption over the past 10 years, but also that more than two-thirds score below 50 on...

LSB publishes CRM Code review

The LSB has published its review into the CRM Code for APP scams. The review of the voluntary code looked to see how effective it has been in providing greater consumer protection, and to see whether it has had an...

NCA publishes SARs reporter booklet

NCA has published a booklet summarising feedback from law enforcement agencies on their use of SARs, which it hopes will be informative in sharing perspectives on the use of SARs and sharing and encouraging best...

TAFA report shows little action

Treasury has published the quarterly report on activity under the Terrorist Asset Freezing etc Act 2010.  The report covers the quarter to end of September 2020, and shows only £108,000 frozen in 47 accounts, and two...

JMLSG signposts Brexit effects

JMLSG has noted the parts of its guidance affected by Brexit. In particular: EEA countries are now third countries; the same level of information is to be provided by UK PSPs regardless of whether funds are being...

FS Bill finishes Commons stages

The Financial Services Bill has now completed its journey through the House of Commons and now moves to the House of Lords. Among the key changes now being debated are extensions to penalties for financial crime-related...

HMRC updates on MLR non-compliance

HMRC has updated its published data on businesses that do not comply with the MLRs. Between February and September 2020 it issued 4 substantial fines for failure to comply with obligations, including a fine of nearly...

FCA Covid financial crime guidance to expire

FCA has updated its pages giving guidance to firms on how to act during the pandemic.  As part of this, it has noted that its statement on how firms should apply financial crime systems and controls will no longer apply...

Reminder: changes to MLRs

Various amendments to the MLRs were made in the Money Laundering and Terrorist Financing (Amendment) (EU Exit) Regulations. Some are already in force, with others yet to take effect some of the changes were minor...

TAFA report shows little movement

Treasury has published its quarterly report on the functioning of TAFA, covering April to June 2020.  The report shows that: total funds of £9,000 were frozen with 6 accounts or payments being frozen, but no new...

UK publishes 2020 NRA

Treasury and the Home Office have published the 2020 National Risk Assessment under the MLRs and presented it to Parliament. The report: looks at what has been done in recent years, including in terms of bringing new...

FCA sets up temporary regime for crypto firms

FCA has set up a temporary registration regime for cryptoasset businesses who have applied for registration with FCA under the MLRs but whose applications FCA is still considering. It is taking FCA longer than hoped to...

EBA pleased at AML college cooperation

EBA has published a report analysing how well AML/CFT supervisory colleges are working.  It is pleased that regulators are putting significant effort into setting up colleges, and has reported on good and poor practice...

Treasury makes Brexit financial crime laws

Treasury has made: the Sanctions Regulations (EU Exit) (Commencement) Regulations 2020: these bring into force the sanctions regulations made under SAMLA to set up thematic or country based regimes; and the second...

OFSI says “prepare for Brexit”

OFSI’s latest blog alerts firms to the changes they will see at the end of the transition period. It notes that: SAMLA provides the UK’s autonomous legal framework for its sanctions regime the FCDO has...

UK publishes retained Blocking Regulation

The DIT has published an information page on the UK Protection of Trading Interests Legislation, which includes the UK retained version of the EU blocking statute.  The laws continue to protect UK persons who trade with...

NCA gets record SARs

NCA’s 2020 SARs report shows a 20% increase on the previous period and a  total of 573,000 SARs. Of these, nearly 62,500 were DSARs – an increase of 81% on the previous period. NCA also reports £172m as the...

Memo of Understanding: FSCS and SFO

A memorandum of understanding between the Serious Fraud Office and the FSCS has been published. The MoU sets out the parties’ intentions to work together in the public interest to achieve appropriate outcomes in...

EBA reminds firms to finalise Brexit plans

EBA has reminded firms that, from the end of the transition period, UK firms can no longer provide services to EU customers on a passporting basis. It notes that: UK financial institutions offering services to EU...