FIN.

Category - Financial Crime Prevention

Wolfsberg Group publishes SOW and SOF FAQs

The Wolfsberg Group has published FAQs on how Financial Institutions can identify, mitigate and manage money laundering risks by undertaking Source of Wealth and Source of Funds checks on relevant customers, when...

Up next from FCA

FCA’s latest Policy Development Update heralds: consultation on financial crime reporting during Q3; PS on debt advice levy rates in Q4; CP on exit fees in investment platforms and comparable firms during 2021; PS...

Treasury consults on economic crime levy

Treasury is consulting on the introduction of the economic crime levy, announced in the Budget, which aims to raise around £100m per year. It wants views on: the design principles of the levy how it can operate in...

HMRC feeds back on trust registration

HMRC has published a summary of the responses it received to its consultation on MLD5 and the Trust Registration Service.  The consultation had over 100 responses, and the key messages were: most respondents agreed with...

MEPs approve ML action plan

MEPs have resoundingly backed the Commission’s action plan for fighting money laundering and terrorist financing. In a press release, the European Parliament said it “deplores” the incorrect and patchy...

Commission confirms MLD4 enforcement actions

The European Commission has confirmed further actions against Member States for failure correctly to transpose MLD4. It has sent letters of formal notice to Luxembourg, Slovakia and Slovenia, reasoned opinions to...

Up next from FCA

Over the rest of 2020, FCA plans the following: consultations on mortgage borrowing and mortgage prisoners (now overdue), debt advice levy rates and exist fees in investment platforms (Summer 2020) and on financial...

Basel Committee finalises AML/CFT guidelines

The Basel Committee has published the updated version of its guidelines for supervisors on co-operation in relation to the sound management of risks related to money laundering and the financing of terrorism. Among the...

Court of Appeal upholds Cynergy judgement

The Court of Appeal has upheld the judgment that a borrower was justified in its refusal to make payments under a loan where the ultimate beneficial owner of the lender was an OFAC SDN. Cynergy Bank (a UK bank) had...

FCA makes new rules

FCA has published a Handbook Notice covering the rules it made at its May and June Board meetings. changes to COBs in relation to pension transfers, introducing a ban on contingent charging in respect of most advice on...

MLD4 high-risk list in OJEU

The revised list of high-risk third countries for AML purposes has been published in the OJEU. The new list applies from 1 October, and will comprise: Afghanistan Bahamas Barbados Botswana Cambodia Ghana Iraq Jamaica...

FCA reminds crypto businesses to register

FCA has reminded businesses that carry on cryptoasset activity in the UK to register with it for AML purposes, if they have not done so already.  Firms that were carrying on the activities before 10 January 2020 must...

JMLSG upates on Covid-19 risks

JMLSG has reminded firms of FCA’s guidance on managing financial crime risks throughout Covid-19 and has also commented on the disruption the pandemic is causing to documents often relied on for CDD purposes. It...

FCA fines Commerzbank for AML failings

FCA has fined Commerzbank AG London Branch nearly £38m for AML systems and controls failings spanning a 5 year period to September 2017.  The bank benefited from a 30% discount for early settlement. Many of the...

EBA looks to understand derisking

The EBA has issued a call for input better to understand the scale and drivers of derisking and its impact on customers.  It wants to gain better insight into why finacnail institutions prefer to derisk instead of...

FCA updates market abuse pages

FCA has updated the guidance on its website on reporting suspected market abuse. The guidance includes FCA’s expectations in respect of how firms should make market observations in situations where they will not...

Pay.UK heralds COP launch

Pay.UK has heralded the introduction of Confirmation of Payee and has reminded users of the importance of using “first name surname” rather than a nickname on payment details. Its data shows that 34% of...

Europol launches economic crime centre

Europol has launched the European Financial and Economic Crime Centre to give better operational support to Member States and EU bodies fighting financial and economic crime. It has also published a report looking at...

FCA publishes quarterly CP

FCA is returning to some regular business and has published a short quarterly consultation, proposing changes to: clarify FSCS’s power to declare in default firms and successors subject to the proposed new...

EVENT: Retail Banking Mixer Webinar

Our next r=Retail Banking Mixer will be held by webinar on 18th June at 10am.  We are delighted to be joined by Rosemary Ford and Amber Andrade from Deloitte this time. The webinar continues the focus on COVID-19.  Our...

Commission updates on MLD transposition

The European Commission has updated its website to show the state of transposition and infringement actions in respect of the Money Laundering Directives.  The UK is no longer mentioned. In respect of MLD4, all Member...

JMLSG updates guidance

JMLSG has published its final amendments to its guidance to take account of the implementation of MLD5, and which it consulted on in February.  It has submitted the changes to Treasury for approval.

OFSI reports on TAFA

OFSI has submitted its latest quarterly report to Parliament on the operation of the UK asset freezing regime under TAFA. The report covers the quarter to the end of 2019 and notes: only £9,000 of funds were frozen...

Market Watch Covid special

FCA’s latest edition of Market Watch looks at market conduct and discipline in the context of coronavirus. It stresses particularly the importance of complying with the standards of MAR. Given the likely need for...

EP updates on MLD4 high-risk list

The European Parliament’s legislative observatory notes that the revised MLD4 high-risk third country list is now awaiting a committee decision.  Meanwhile, the UK is among 9 jurisdictions from whom the Commission...

JMLSG consults on pooled client accounts

JMLSG is consulting on some new draft text for Chapter 5 of Part 1 of its guidance dealing with pooled client accounts. JMLSG considers the key risks of PCAs are where a customer’s clients misuse a PCA without the...

FCA updates on Innovation Hub help

FCA has updated its information on requesting Innovation Hub support in light of Covid-19. It wants to hear from firms who have creative and innovative solutions to the challenges the virus is posing, and is...

NCA updates guidance on better SARs

NCA has published an update to its guidance on how to submit better quality SARs, and a set of FAQs to accompany it.  The guidance stresses that a properly made SAR will give the enforcement agencies a quick picture of...

EU launches AML policy

The European Commission has adopted an action plan for an EU policy on preventing money laundering and terrorist financing. It wants to deliver, by early 2021: effective implementation of existing rules a single EU...

FATF updates on Covid-19 risks

FATF has considered the financial crime risks that Covid-19 has created, and is looking at how to address them. It is particularly concerned at, for example, how criminals may seek to bypass CDD measures, use online...

FCA publishes skilled person data

FCA has publicised the number of skilled persons reports commissioned in January to March 2020. It commissioned 24 in total, of which 9 related to retail banking and 6 to retail lending.  6 of the reports were on...

Regulator Covid-19 Update 27 April

On 27 April: FCA has clarified the relationship between its rules and the UK’s CBILS and Bounce Back Loan schemes.  It notes that, pending the roll-out of the BBL scheme, which, from 4 May,  will give small...

Wolfsberg Group updates CBDDQ

The Wolfsberg Group has updated its Correspondent Banking DDQ and supporting documents. The changes update the documents and focus on ease of use and readability.

TI disappointed at UWO overturning

Transparency International has expressed its disappointment at the High Court’s decision to dismiss UWOs that would have required family members of the former Kazakh President to explain how they acquired £80m of...

PSR publishes APP scam thoughts

The PSR has published a summary of a conference call between key players in the payments industry to discuss the progress being made in tackling APP scams. It decided to go ahead with the call, not least as Covid-19 has...

FCA Business Plan 20/21

The FCA published its business plan for the coming year this morning.  The plan focuses around 5 key priorities for the year.  It has been significantly reshaped because of coronavirus as it was intended to show the...

Regulator Covid-19 update 1 April

Further updates from the regulators, in addition to FCA’s Dear CEO letter to retail investment firms, include: PRA welcoming the agreement by the boards of large UK banks to suspend dividends and buybacks on...

JMLSG consults on crypto guidance

JMLSG is consulting on a new part to its sectoral guidance, to cover cryptoasset exchange providers and custodian wallet providers. The new Part 22: defines crypto-assets, noting some examples which firms should...

Gambling Commission fines for AML failings

The Gambling Commission has fined Betway £11,6m for a series of “social responsibility” and money laundering failings linked to 7 VIP customers. The Gambling Commission found that: generally, because the...

TI welcomes economic crime levy

Transparency International has welcomed the Government’s announcement of an economic crime levy on firms subject to the MLRs. The Government will consult on its plans later in the spring.

FCA compares bank fraud controls

FCA has published data on the fraud controls banks have in place, intended to help consumers compare what different banks do. UK Finance asked banks: what their approach to fraud prevention was; what controls the firm...

FATF publishes guidance on digital ID

FATF has published a report giving guidance to regulators and firms on how to determine whether a digital ID is an appropriate CDD tool.  The report looks at how digital ID systems work, and what their key features are...

FCA speaks on digital assets

Therese Chambers has spoken on the financial crime risks presented by stablecoins and other digital assets. She spoke of: early attempts to launch non-state backed digital currency, and Bitcoin’s predecessors...

Up next from FCA

FCA plans the following publications: consultation on exit fees in investment platforms and comparable firms (March); consultation on listing of OEICs (Q1); consultation on changes to DEPP, EG and the financial crime...

FCA publishes 2019 data on STORs

The FCA has published its suspicious transaction and order reports (STORs) figures for the year ending December 2019. The number of STORs had increased consistently since 2016; however, the data for 2019 appears to buck...

CLLS views on TRS extension

CLLS has input its view on the extension to the TRS. As with other respondents, it notes several types of trust it thinks should be out of scope, including: trust arrangements that are incidental to a corporate...

APP Scams Interim Funding Extension

UK Finance confirmed on 27 February  that the payment service providers who have provided the interim funding arrangement  since May last year, have agreed to extend their funding to the end of the year (31/12/20). This...

Treasury updates AML advisory

Treasury has updated its AML advisory in the light of the most recent FATF plenary.  The notice confirms that counter measures and enhanced due diligence should be applied in respect of North Korea and Iran, and...

ESRB reports on systemic cyber risk

The European Systemic Risk Board (the “ESRB“) has published a report on cyber risks and incidents, which, owing to the interconnectedness of various information systems, spread quickly and widely. The ESRB...

FATF blacklists Iran

At FATF’s February plenary meeting it: updated its list of high risk jurisdictions. Notably, it decided Iran has not met commitments to complete its action plan, or enact the Palermo and Terrorist Financing...

TI writes to SFO on DPA regime

In the light of the Airbus DPA, Transparency International and Spotlight on Corruption have written to Lisa Osofsky asking that SFO evaluates how DPAs are used to ensure the regime is fair and consistent and provides a...

HMRC investigating 30 for CFA breach

In response to several FOIA requests, HMRC has published statistics on what it is doing to police the CFA offence of failure to prevent facilitation of tax evasion. As at the end of 2019, it had 9 live investigations...

EU gets tough on AML

The European Commission has sent formal notice letters to 8 Member States for failing to tell it about their implementation measures for MLD5. It requires a response within 2 months, after which it may move to a...

Court dismisses UWO appeal

The Court of Appeal has dismissed an appeal against the first UWO imposed under the powers the CFA gave to the NCA. The UWO had been imposed in relation to the Azeri wife of an Azeri banker. A property had been...

FCA updates on skilled persons figures

FCA has published its latest figures on the numbers of skilled persons reports it has commissioned. During Q3 of 2019/2020 it commissioned 10 – of which 5 related to wholesale financial markets, 2 each to retail...

JMLSG consults on guidance update

JMLSG is consulting on updates to its guidance to take account of implementation of MLD5 and also make various other clarifications. The changes (consulted on in marked up form) will affect chapters 4,5,7 and 8 and the...

UK AML post-Brexit

Emma Radmore was interviewed by Money Laundering Bulletin on what might happen to UK AML laws in a post-Brexit world.

SFO publishes Airbus DPA

On Friday, Dame Victoria Sharp, President of the Queen’s Bench Division, approved a Deferred Prosecution Agreement between the Serious Fraud Office and Airbus SE. Under the terms of the DPA, Airbus SE agreed to...

OFSI updates sanctions guidance

OFSI has updated its general sanctions guidance in respect of its application to UK financial sanctions regimes under SAMLA. Separate guidance still applies to the EU regimes. The guidance contains explanations of how...

Progress update on PSR’s work

Chris Hemsley, Managing Director of the Payment Systems Regulator (PSR) delivered a speech at last week’s Westminster Business Forum: Payments, policy and regulation – infrastructure, innovation and end-user...

Government consults on TRS

Treasury and HMRC are consulting on the technical measures needed to extend the Trust Registration Service. The consultation includes draft legislation and proposals on the types of express trusts that will need to...

Treasury responds on MLD5

Hot on the heels of Parliamentary criticism, Treasury has now published its response to the consultation on MLD5 implementation.  The response confirms the Treasury’s position in: expanding the definition of...

Parliament criticises lack of MLD5 feedback

Hansard reports criticism of the way in which Treasury announced the measures implementing MLD5.  In particular, it was disappointing that Treasury did not publish copies of the feedback on consultation and impact...

SFO updates compliance programme guidance

SFO has published an updated version of its internal guidance on how it evaluates a compliance programme.  The guidance is part of SFO’s Operational Handbook. When SFO is investigating an organisation, it will use...

HMRC updates on MLRs

HMRC has updated its website to reflect the changes the MLRs have brought and, in particular, the new classes of entities that fall within the regulated sector.  It will issue further guidance shortly, but has confirmed...

FCA updates AML pages

FCA has updated its pages on AML to take account of the coming into force of the changes to the MLRs implementing MLD5 and the regime for registration of those in the cryptoasset sector. It also confirmed the...

FCA confirms crypto-AML requirements

FCA has formally confirmed that it has, as of 10 January, become the AML/CTF supervisor of businesses carrying on certain crypto-asset activities that now fall under the MLRs.  It reminds market participants that no new...

FCA updates website on MLRs

FCA has updated its website to provide information for firms on the amended MLRs following MLD5 implementation. It stresses the changes the new MLRs bring in relation to: high-risk factors – the MLRs now specify...

Treasury makes MLR changes for MLD5

Treasury has made the Regulations amending the 2017 Money Laundering Regulations to implement MLD5.  The changes also amend key primary legislation, not least to broaden the scope of the “regulated sector”...

EVENT: Retail Banking Mixer

Bringing together professionals in the insurance, banking and other financial services sectors, we will be hosting the first of our quarterly RETAIL BANKING MIXERS at our Edinburgh office on 9th January from 4pm –...

ESAs publish AML/CFT cooperation guidance

The ESAs have published guidelines for supervisors designed to ensure effective cooperation and information exchanges between supervisors to combat money laundering and terrorist finance.  The guidelines include a...

ESMA publishes MAR review papers

ESMA has published a series of papers relating to the operation of MAR. The papers include: a peer review report on how regulators handle STORs. The review showed there had been a significant increase in market...

EPC notes key payment threats

The European Payments Council has published its third annual Payment Threats and Fraud Trends report. The report discusses the risks and trends, including those caused by: social engineering; malware; “advanced...

FATF speaks at AML conference

David Lewis, executive secretary of FATF, has spoken on the importance of stamping out a tick box culture in AML, and ensuring that industry and supervisors treat financial crime prevention as seriously as they should. ...

EU calls for halt on stablecoins

The European Council and Commission have called for a halt on any stablecoin arrangements in the EU, saying they should not start operating until the legal, regulatory and oversight challenges and risks have been...

European Council set out next AML actions

The European Council has adopted new priorities on AML and CFT measures, in which MLD5, CRD5 and the ESAs will be critical. The Council now wants the Commission to look at how it can further enhance the rules, in...