FIN.

Category - Financial Crime Prevention

EU to amend high risk third countries list

The European Commission has published a draft Regulation to amend the MLD list of high risk third countries. It proposes to: add to the list: Burkina Faso, Cayman Islands, Haiti, Jordan, Mali, Morocco, the Phillippines...

EBA publishes derisking opinion

EBA has published its opinion on the scale and impact of derisking and the steps regulators should take to tackle “unwarranted” derisking. Although EBA feels its guidance ought to help avert the practice, it...

JMLSG consults on syndicated lending changes

JMLSG is consulting on a proposed change to the Syndicated Lending chapter within part 2 of its guidance, to include a new paragraph on the risk-based measures that may be appropriate for each lender in a syndicate when...

JMLSG comments on guidance on digital identities

The Joint Money Laundering Steering Group (JMLSG) has published an update on its website relating to the recent interest in digital identities and their use as part of AML/CFT procedures. It notes that it continues to...

HMRC reports on MLR non-compliance

HMRC has published its regular report on business that have failed to comply with the MLRs. Among the failings and fines are: a fine on BNY Mellon Corporate Trustee Services Limited for failing to apply for registration...

JMLSG updates guidance

JMLSG has confirmed the changes it proposed to chapter 5.7 of part 1 of its guidance on monitoring customer activity and published one further clarificatory guideline. It has now submitted the updated wording to...

Structure of sanctions lists to change

OFSI and the FCDO have announced that the structure and format of the UK sanctions list will change in February 2022.  The changes will include: alias strength for UN listings standardised data wherever possible new...

NatWest fined £264.8m for AML failings

The long awaited sentencing following the conviction of NatWest on three offences of failing to comply with the MLRs resulted in the announcement of a fine on the bank of £264,772,619.95.  The bank admitted to breaching...

UK Finance updates Financial Abuse Code

UK Finance has published an updated version of its Financial Abuse Code of Practice.  The Code is a voluntary one, updated to reflect the industry’s understanding of victim-survivor needs. It is designed to align...

ESMA reports on MAR sanctions

ESMA has published a report on the sanctions imposed by various member states under MAR during 2020.  Over the year, €17.5m in fines were imposed for over 500 breaches. The number of administrative actions was...

Government publishes AML supervision report

The Government has published its AML and CTF supervision report for 2019-2020. The report notes the system has been strengthened significantly over recent years. The FATF report on the UK in 2018 had noted significant...

PSR announces next steps to stop APP fraud

The PSR has set out its latest plans to force the financial sector and others involved in the digital ecosystem to prevent APP fraud. It is consulting on plans to: require the UK’s largest banking groups to...

Treasury updates AML advisory

Treasury has updated its AML advisory on high risk jurisdictions for money laundering and terrorist financing, following the FATF meeting last week The list continues to require firms to apply counter measures and EDD...

FATF updates virtual asset guidance

FATF has updated its 2019 guidance on a risk based approach for virtual assets and virtual asset service providers. The updates focus on: definitions of key terms; clarification of application of FATF standards to...

Treasury updates on Economic Crime levy

Treasury has published a policy paper on the introduction of the economic crime levy, which will be introduced in the 1 April 2022 – 31 March 2023 levy year and payable in the following financial year. It had...

FCA responds on NatWest

FCA has responded to the enquiry from the Treasury Committee on its actions in relation to its prosecution of NatWest for money laundering. The response says it would be inappropriate to respond in detail while...

FATF holds fifth plenary

The FATF held its fifth plenary between 19 and 21 October 2021. Those present for the meetings included delegates representing the 206 members of the Global Network and observer organisations. The FATF finalised a...

Fraud taskforce adds new charters

The Government website hosting all information about the Joint Fraud Taskforce has added the charters for accountancy, retail banking and telecommunications.  The retail banking charter quantifies the key risks (APP...

FCA publishes 2020/21 Perimeter Report

The FCA has published its latest Perimeter Report, in which it calls for greater consumer protection and legislative change to address concerns beyond its remit. Highlights include recommendations that: duties on...

ICAEW responds on AML consultations

ICAEW has published its response to the Treasury’s call for evidence on the UK AML/CFT supervisory regime and on targeted amendments to the MLRs. In its response on the MLR amendments, key observations include:...

SFO gets more Petrofac bribery convictions

SFO has confirmed Petrofac’s conviction for seven separate counts of failure to prevent bribery between 2011 and 2017. The convictions relate to failure to prevent former senior group executives from using agents...

Nat West pleads guilty to MLR offences

Nat West has entered guilty pleas to criminal charges brought by FCA that it had failed to comply with certain requirements under the MLR 2007 between various dates from November 2012 to June 2016. The failings related...

Regulators write to firms on cyber findings

BoE, PRA and FCA have written to firms on their 2021 CBEST thematic findings.  The comments are addressed to the individual SMF holder with responsibility for cyber, noting that the individual is responsible for:...

JMLSG confirms changes and consults on more

JMSLG has confirmed the changes to its Part II guidance on Trade Finance (although the changes remain subject to Treasury approval), and is consulting on changes to Chapter 5.7 in Part I of its guidance.  The changes...

EDPS welcomes EU’s plans for AML overhaul

The EDPS has published his opinion on the European Commission’s proposed package of AML changes. The EDPS welcomes the proposals but says further clarifications are needed to minimise intrusion into individuals’...

Treasury updates on economic crime levy

The Treasury consultation on the imposition of an economic crime levy concluded last October and Treasury has published a summary of the responses it received. The Government is now consulting until 15 October on the...

OPBAS publishes progress report

OPBAS has published its latest report on its work to bring compliance with AML requirements in the professional services supervisory  sector up to the levels in other sectors.  Its report shows there are still...

OFSI calls for frozen asset reports

OFSI has called for any firm holding assets of designated persons to submit the annual frozen assets report by 15 October, reporting on the value of all assets as of close of business on 30 September. As usual, the...

FCA Chair speaks on risks of token regulation

Charles Randell, Chair of the FCA and PSR has delivered a speech on the risks of regulating crypto tokens. Speech highlights include: whilst platforms’ efforts to crack down on fraudulent advertisements are welcome, a...

TI responds on corporate criminal liability

Transparency International has responded to the Law Commission consultations on reform of corporate criminal liability. The response notes: that reform is long overdue, given the difficulties in establishing corporate...

HMRC updates on MLR fines

HMRC has updated its list of businesses that have not complied with the MLRs. Among the actions: a fine of £1,000 on an accountancy service provider that failed to provide documents when requested; a fine of £6,300 on...

LSB looks at next steps for CRM Code

LSB says the responses it received to its call for input on the CRM Code suggest the risk of APP scams is not evenly distributed among payment providers, and some respondents thought it did not cater for certain...

OFSI fines fintech for sanctions breach

OFSI has fined TransferGo Limited (an authorised payment institution) £50,000 for making funds available to a person designated under the Ukraine sanctions regime. The fine relates to 16 transactions where TransferGo...

FCA launches new whistleblowing webform

The FCA has launched a new online form for reporting concerns about wrongdoing by firms or individuals to the FCA. It has also published a new webpage to help whistleblowers decide where to make a report.

EBA consults on AML compliance officers

EBA is consulting on new guidelines on the role, tasks and responsibilities of AML/CFT compliance officers within supervised entities. The guidelines also consider the wider governance set up, including at group level...

FCA publishes individual ban notice

FCA has published a decision notice noting its decision to ban Markos Markou, director and CEO of a mortgage broker, and to fine him £25,000.  FCA considers Mr Markou not fit and proper to perform his senior management...

Treasury consults on amendments to MLRs

The Treasury is consulting on amendments to the MLR 2017 Statutory Instrument 2022. These amendments will allow the government to make some time-sensitive updates to the MLRs, which are required to ensure that the UK...

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...

FCA publishes Business Plan

FCA’s 2021/22 Business Plan highlights: how FCA has to change as the environment in which it operates changes and how investment in technology and changes in culture are key to this; the need to enable customers...

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...