Rawa HussainThe Russian Elites, Proxies, and Oligarchs (REPO) Task Force has released a joint statement outlining how they have been able to isolate sanctioned Russians by freezing, seizure, forfeiture and/or disposal of assets...
Category - Financial Crime Prevention
Emma RadmoreOFSI fines company for employee flight sanctions breach
OFSI has updated its table of monetary penalties for sanctions breaches. The table now reflects a fine on Tracerco Limited, a company operating in the energy sector, which has been fined £15,000 for making funds...
FCA fines JLT for more bribery control failings
FCA has levied a second fine on insurance broker JLT Speciality Ltd for financial crime control failings. The £7,881,700 fine follows a previous fine of nearly £2m in December 2013 for similar failings. Following...
FCA seeks retrial in insider dealing case
Following the Court’s decision to discharge the jury after they were unable to reach a verdict following an 8-week trial, the FCA has announced that it will pursue a retrial of Stuart Bayes and Jonathan Swann for...
Lucy HadrillOutcomes of FATF plenary
The latest FATF Plenary meeting took place from 14-17 June. At it, FATF agreed to severely limit the role of Russia and its influence in FATF; approved a report to help the real estate sector better detect and prevent...
FCA update on market abuse and manipulation
Tackling market abuse is one of the FCA’s strategic priorities. Given recent press reports about the FCA’s approach, the FCA outlined the work it does to tackle insider trading and manipulation and to warn...
Treasury Committee to question OFSI on sanctions effectiveness
The Treasury Committee is to question OFSI as part of its inquiry into effective economic sanctions on Russia. The session will take place on 22 June and is likely to include discussion on the challenges of implementing...
NCA updates SAR Glossary codes
NCA has published updated guidance on SAR Glossary Codes and Reporting Routes. The booklet follows the familiar form, providing: a checklist aimed at establishing whether the circumstances require immediate attention...
Treasury feeds back on MLR changes
Treasury has published the feedback on its consultation from last summer on amendments to the MLRs. It has now analysed the responses to the consultation, made the legislative changes, and most of the changes will take...
EBA publishes MLRO role guidelines
EBA has published its final guidelines on the role and responsibilities of the officer in charge of compliance with AML and CTF and of the management body of credit and financial institutions. As ever, the Guidelines...
Law Commission sets out proposals for corporate criminal liability reform
Following a request by the government to carry out a review of the law on corporate criminal liability, the Law Commission has now published ten options for reforming how companies are convicted of criminal offences...
Post-legislative assessment of the Fraud Act 2006
The Ministry of Justice has published a memorandum on the Fraud Act 2006 which provides an updated post-legislative assessment of the Act for submission to the House of Lords Select Committee in light of rising digital...
FATF publishes UK follow up report
FATF has carried out its latest assessment of the UK’s compliance with its Recommendations, following the 2018 report. FATF says the report from the UK on the actions taken since the last evaluation has enabled it...
OFSI updates sanctions enforcement guidance
OFSI has updated its guidance on sanctions enforcement and monetary penalties, which will take effect from 15 June 2022. The changes reflect the amendments to enforcement powers created in the Economic Crime...
Harshil PatelLMA publishes useful Counsel’s advice on Russian Sanctions
The Lloyds Market Association (LMA) has published advice received from Counsel on coverage following the recent introduction of sanctions against Russia. The questions covered included whether insurance cover can be...
Privy Council declines to extend the Quincecare duty to protect beneficial owners of funds
The Privy Council has handed down its decision in Royal Bank of Scotland International LLP (Bank) v JP SPC 4 and another [2022] UKPC 18, in which it confirmed that as a matter of law, banks do not owe a duty of care...
FRC disciplines KPMG and Partner over Rolls Royce audit
The Financial Reporting Council has issued its final decision notice after its investigation into KPMG Audit plc and the Audit Engagement Partner, Anthony Sykes, in respect of the statutory audit of Rolls-Royce Group...
FCA speaks on regulating finance in the UK
Charles Randell, FCA and PSR Chair, has delivered a speech on regulating finance for the whole of the UK. Highlights include: Importance of partnerships and policy coherence – the FCA recognises the continued importance...
FCA asks for reports of sanctions evasions
A new page on the FCA website asks for reports of sanctions evasion by firms on any of FCA’s registered or by companies with UK listed securities. The new page gives details of how: individuals can report as...
FCA highlights the risks of investing in crypto
The FCA has issued a statement following some recent social media posts regarding cryptoassets and NFTs. Whilst it cannot comment on individual products, it has warned consumers that there are no consumer protections...
Queen’s Speech 2022 – FS elements
The Queen’s Speech 2022 outlined the government’s legislative priorities for the next parliamentary session. The measures announced include two bills of particular interest to financial services...
Government sets out approach to APP scam reimbursements
HM Treasury has published a policy paper outlining how the government and PSR intend to improve the reimbursement of APP scam victims. The government intends to legislate in the Financial Services and Markets Bill to...
FCA launches latest “scam smart” campaign
FCA has launched its latest “scam smart” campaign with case studies on increasingly sophisticated scams including those involving screen sharing which enabled scammers to take £48,000 from a consumer’s...
Treasury Committee publishes response to fraud, scams and economic crime report
The Treasury Committee has published responses from the Government, FCA and PSR to its report on economic crime. The key message is that the Government is creating a second Economic Crime Plan which it will publish...
FCA speech on critical issues in financial regulation
On 26 April 2022, the FCA published a speech given by Nikhil Rathi, FCA Chief Executive, on the FCA’s view of critical issues in financial regulation. Mr Rathi sets out the challenges and opportunities confronting...
EU Council publishes note on proposal for regulation on transfer of funds and cryptoassets
On 21 April 2022, the Council of the EU has published a note to commence trilogues with a three-column table summarising and comparing the European Commission’s proposals, the European Parliament and Council’s...
FCA launches Early and High Growth Oversight initiative
Following a successful pilot, FCA are expanding their Early and High Growth Oversight initiative, to provide targeted support for 300 newly authorised firms by the end of 2023. FCA will provide enhanced supervision for...
FCA calls on challenger banks to improve financial crime controls
FCA has published a thematic review on how challenger banks assess financial crime risk, and has highlighted significant failings. Among the findings of the review, which it carried out during 2021, focussing on banks...
FATF reports on effectiveness and compliance with FATF standards
FATF has published a report based on data from mutual evaluation reports since 2013, which finds that overall countries have made huge progress. Many have enacted a range of laws and regulations, with 76% of countries...
FCA talks of a “digital regulator”
Jessica Rusu, FCA’s Chief Data, Information and Intelligence Officer, has spoken on how FCA is building its digital regulatory future. Its work will focus on fostering innovation, being intelligence led and...
MEPs vote on draft crypto legislation
MEPs from ECON and the Committee on Civil Liberties have voted to adopt their position on draft crypto legislation which forms part of the EU’s wider package of measures aimed at strengthening AML/CFT rules in the...
Wolfsberg Group publishes digital risk management guidance
The Wolfsberg Group has published guidance on Digital Customer Lifecycle Risk Management. The guidance looks at how non face-to-face customer interaction could be considered a standard or even lower-risk channel for a...
New high-risk jurisdictions list in force from 29 March
The latest amendment Regulations setting out high-risk countries for ML/TF purposes took effect on 29 March. The list is: 1. Albania 2. Barbados 3. Burkina Faso 4. Cambodia 5. Cayman Islands 6. Democratic People’s...
Regulators remind firms of crypto risks
PRA and FCA have written to firms reminding them of their obligations when interacting with or exposed to crypto-assets and related services. FCA reminds firms that crypto can offer benefits but also increased risk to...
Update on Overseas Entities Register
Read our updated article on the creation of the Overseas Entities Register under the Economic Crime (Transparency and Enforcement) Act 2022. The article highlights that the grace period given to overseas entities to...
EBA finds AML and CFT supervision of banks is improving
EBA published the findings from its assessment of competent authorities’ approaches to AML and CFT supervision of banks. Since the EBA started its reviews in 2019 and strengthened its AML/CFT guidance, national...
EP reports on crypto Regulation proposal
The European Parliament has published its report on the proposal for a Regulation of crypto asset service providers. A key change is to specify that any person providing any relevant services to EU citizens must both...
Treasury updates AML advisory
The latest AML advisory to update the list of high risk third countries has been updated to reflect FATF’s latest list. The list now comprises Albania, Barbados, Burkina Faso, Cambodia, Cayman Islands, DPRK...
Government introduces Online Safety Bill to parliament
The government has agreed to make changes to the Online Safety Bill and has now introduced the Bill into the Commons. The government has also responded to the Joint Committee on draft Online Safety Bill’s report...
FCA starts thinking about “side pockets” for Russian-exposed funds
FCA has started discussions in advance of a formal consultation on options that would allow UK authorised retail funds to make exceptional use of “side pockets” so they can separate Russian and Belarussian...
New rules on cryptocurrencies in the EU
MEPs have agreed on draft rules on supervision, consumer protection and environmental sustainability of crypto-assets, including cryptocurrencies such as bitcoins. For those issuing and trading crypto-assets, the new...
Economic Crime Act gets Royal Assent
The Economic Crime (Transparency and Enforcement) Act 2022 got Royal Assent on 15 March only 14 days after its introduction into Parliament. As noted in previous posts and articles, the main focus of the Act is: the...
Joint Statement from UK Financial Regulatory Authorities: Cryptoassets
On 11 March 2022, OFSI, the FCA and the Bank of England issued a joint statement on sanctions and the cryptoasset sector. The statement comes amid the conflict between Russia and Ukraine to ensure all firms are...
Treasury and FCA on investing in Russia
The Chancellor has called on all UK firms to think very carefully about any investments that might support the Putin regime, and has welcomed commitments to divest away from Russian assets. The Government recognises...
FCA warns on illegal crypto ATMs
FCA has warned operators of crypto ATMs that they must shut down their machines. Any firm operating a crypto ATM in the UK must be registered under the MLRs, but no firm that does operate one has yet been approved by...
FCA creates Ukraine-focussed webpage
FCA has created a new webpage to bring together its various resources and publications relating to the Russian invasion of Ukraine. It includes FCA’s notices about the effect of the invasion on financial markets...
AML Levy Regulations made
The Economic Crime (Anti-Money Laundering) Levy Regulations have been made and will take effect on 1 April. The Regulations: specify the FCA, Gambling Commission or HMRC as appropriate as the collection agencies; and...
Sanctions and Economic Crime update 11 March
Over the last couple of days: OFSI has published a blog on the evolving Russian sanctions, including calling out the intent of the Economic Crime bill to introduce a strict civil liability test, and confirming that it...
Government launches consultation on online advertising
The government has launched its Online Advertising Programme consultation which will review the regulatory framework of paid-for online advertising in a bid to improve transparency and accountability and tackle harmful...
Fraud Act Committee launches call for evidence
The House of Lords Committee on the Fraud Act 2006 and Digital Fraud has launched a call for evidence on what measures should be taken to tackle the increase in fraud cases. In particular, the Committee would like to...
Corporate transparency and Companies House reforms
Read our article on the BEIS White Paper on the plans to enhance Companies House’s role and increase transparency of UK corporate entities.
Suzanne GadoEconomic Crime Bill now in Lords as Russian sanctions further updated
The Economic Crime (Transparency and Enforcement) Bill has started its passage through the House of Lords, and the Bill as brought from the Commons has been released. Meanwhile, the Russia sanctions regulations have...
FCA gives guidance on operational and cyber resilience in light of invasion of Ukraine
FCA’s new webpage looks at points firms should consider about their operational and cyber resilience following the Russian invasion of Ukraine. It recommends that firms: review the National Cyber Security Centre...
Economic Crime Bill nears end of Commons stage
The Economic Crime (Transparency and Enforcement) Bill is nearing the end of its stage in the Commons, and is at 3rd reading. 47 pages worth of amendments have been tabled to date.
OFSI updates sanctions guidance for Russia
OFSI has published an update to its financial sanctions guidance, specifically addressing the range of sanctions now introduced against Russia. The guidance explains the scope of the sanctions and available licensing...
FATF updates recommendation 24
At FATF’s latest meeting, it adopted amendments to Recommendation 24 and its interpretive note. The recommendation now requires a multi-pronged approach to the collection of beneficial ownership information...
Sanctions and economic crime update 4 March
Late on 3 March and on 4 March: FCDO and OFSI confirmed the extension of sanctions to Russian oligarchs Alisher Usmanov and Igor Shuvalov; and BEIS published an updated factsheet on the register of overseas entities;...
Read our article on overseas entities register
We have written an article giving more detail on the proposals in the Economic Crime Bill finally to implement the registry of beneficial ownership information for foreign entities holding property in the UK, and the...
FCA publishes Consumer investments data review
The FCA has published its third Consumer investments data review. The review provides an overview of FCA’s work to protect consumers from investment harm between April and September 2021. This follows FCA’s...
Emma BondUK to target provision of insurance to Russian companies with next sanctions round
The new round of UK economic sanctions will prevent Russian companies in the aviation and space industry from accessing the UK insurance sector. The measures will apply to insurance and reinsurance services accessed...
FCA notes impact of invasion of Ukraine on financial markets
FCA has noted the multiple impacts that financial markets will feel following the Russian invasion of Ukraine itself and the wide range of sanctions imposed by numerous jurisdictions on Russia, Russian individuals and...
Transparency International comments on economic crime measures
Transparency International has welcomed that publication of the Economic Crime Bill as an opportunity to be a major boost to Britain’s defences against illicit wealth. However, there are some things it thinks...
Finance Act 2022 gets Royal Assent
The Finance Act 2022 has achieved Royal Assent, and includes the economic crime levy. It sets out: the powers of FCA, HMRC and the Gambling Commission to collect it; how to assess whether a person is subject to the...
FCA updates on SCA expectations
FCA has updated its webpage on SCA to explain the changes to the SCA-RTS in respect of the new exemption that means customers will not need to reauthenticate when accessing account information through a TPP, if ASPSPs...
Sanctions updates from 2 March
On 2 March, various UK government agencies and regulators released a number of statements and extra measures brought in on 1 March: the PSR announced that is was working with all relevant agencies to help make sure the...
OFSI updates asset freeze lists
OFSI has updated its list of all asset freeze targets and has also published separately an updated list of persons named in relation to financial and investment restrictions related to Russia, together with guidance on...
Government publishes economic crime combatting measures
As promised, the Government has published: The draft Economic Crime (Transparency and Enforcement) Bill; a factsheet on the Register of Overseas Entities; and a white paper on corporate transparency and register reform...
Economic Crime Bill, Register of Overseas Entities and Companies House reform – at last
The Home Office has announced it is to bring forwards a new Economic Crime (Transparency and Enforcement) Bill on 1 March. The bill is to help NCA prevent foreign owners from laundering money in UK property and to make...
OFSI updates Russian sanctions
Unsurprisingly, OFSI is constantly updating the sanctions lists in respect of Russia. On 24 and 25 February it updated the list of designated persons, which as at 25 February ran to 190 individuals and 59...
Pay.UK develops new data model
Pay.UK has developed a new tool in collaboration with UK Finance to help prevent Authorised Push Payment (APP) fraud. The new ‘logical data model’ will be a useful foundation for categorising relevant customer data to...
FCA reinforces sanctions expectations
In the light of the tranche of sanctions imposed on Russia, FCA has reminded firms it expects them to have established systems and controls to counter the risk they they might be used to further financial crime, and...
New courses for compliance professionals
We are excited to have agreed with the Compliance Register to present at several key courses over the coming months. We will be presenting on: financial crime prevention SMCR the regulatory regime financial promotions...
EBA publishes report on responses to 2020 Luanda Leaks
The EBA has published its report on its assessment of competent authorities’ responses to the 2020 Luanda Leaks. The Luanda Leaks involved the International Consortium of Investigative Journalists (ICIJ)...
OFSI updates sanctions
OFSI has published a new set of financial sanctions relating to Russia, effective from 22 February, together with updated guidance. It amended existing entries in relation to 2 entities and added 5 more entities and 3...
FCA comments on crypto-provider controllers
FCA has commented on recent statements made by Bitpanda announcing its acquisition of Trustology Limited. It comments that the acquisition has made Bitpanda (an EU digital assets service provider) the new beneficial...
Parliament publishes UWO briefing
The House of Commons Library has published a briefing paper on unexplained wealth orders. The paper looks at the background to the introduction of UWOs in the Criminal Finances Act 2017, and says that only 9 orders have...
OFSI updates penalties table
OFSI has updated its table of penalties imposed for breach of financial sanctions restrictions and requirements to include a fine imposed over a year ago, but just publicised, The payment services provider in question...
Amended MLD4 high risk list published in OJEU
The new list of High Risk third countries for the purposes of EU AML legislation has been published in the Official Journal. Burkina Faso, the Cayman Islands, Haiti, Jordan, Mali, Morocco, the Philippines, Senegal and...
JMLSG confirms syndicated lending update
JMLSG has published the finalised revisions to the syndicated lending chapter in Part II of its guidance, following its December 2021 consultation. The new content confirmed that in a low risk scenario, each lender will...
EU Council opines on AML measures
The Council of the EU has published opinions on the proposals for an AML Authority and the proposals for AMLR1 and AMLD6. The ECB has welcomed the package, and is ready to cooperate with the AMLA. It notes the criteria...
Tribunal considers crypto registration refusal
The Upper Tribunal has considered the FCA’s decision not to register Gidiplus Limited under the MLRs and the firm’s application for a suspension application to allow it to continue business pending an appeal...
MLR changes made in respect of trusts
Changes to the MLRs that take effect on 9 March will extend various deadlines in respect of beneficial ownership of trusts, and to amend the lists of excluded trusts. The main deadline for registration of relevant...
ECON publishes draft legislation on transfer of funds and cryptoassets
The European Parliament (ECON) has published draft legislation on the proposal for a regulation on information accompanying transfers of funds and certain cryptoassets. The draft sets out the suggested amendments to the...
Treasury Committee calls for urgent economic crime measures
The Treasury Committee has published its long awaited report on Economic Crime. It is concerned that the Economic Crime Plan has not been as effective as hoped, and says the need for additional funding can’t just...
Treasury and OFSI update on penalties for sanctions breaches
Treasury and OFSI have published updated guidance on monetary penalties for breaching financial sanctions. The guidance applies from 28 January 2022 and applies to all case where OFSI becomes aware of a potential breach...
EBA launches AML/CFT database
The EBA has launched ‘EuReCA’, the EU’s central database for anti-money laundering and counter-terrorism financing. The EBA will use the database to coordinate efforts by competent authorities to...
2021 CPI shows little change in worldwide corruption levels
Transparency International has published the 2021 Corruption Perceptions Index, which shows a worldwide standstill on corruption levels. It is disappointed that the average score on the index is 43 (with 100 being the...
Quincecare Duty – Supreme Court Appeal
The Court of Appeal decision in Stanford International Bank Ltd (in liquidation) v HSBC plc [2021] EWCA Civ 535 comes before the Supreme Court this week as SIB appeal the decision to strike out the loss claim it...
Scott NodderOFSI and FCDO update on new look sanctions lists
OFSI has published a format guide for the Consolidated List of Designated Persons, while the FCDO has published samples of the new-look list in various formats.
FCDO publishes first UK annual sanctions report
The Foreign, Commonwealth and Development Office has published the UK annual sanctions report for 2021, which is the first report to detail the full extent of the UK’s autonomous sanctions since Brexit. In the...
Parliament publishes report on central bank digital currencies
The Economic Affairs Committee has published its report on the potential for the UK to have a central bank digital currency. It has concluded that there’s no convincing case to have one. Although there could be...
FCA updates on skilled persons reviews
FCA has published the figures for the skilled persons reviews commissioned in October – December 2021. There were 12 in total, of which 4 were on retail banking and payments firms and 3 on investment management...
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...
MLR changes change dates and criteria for registrable trusts
Changes to the MLRs: change time limits for the registration of trusts, so that trustees now have until 1 September 2022 to register (extended from the original 10 March to give trustees a year after the TRS enabled...
FCA takes criminal proceedings against directors of unauthorised firm
FCA has commenced criminal proceedings against brothers who were directors of Collateral (UK) Limited, and who: dishonestly represented to investors that the firm was authorised as a P2P lender, knowing it was not;...
ESMA publishes guidelines on delayed disclosure under MAR
ESMA has published its final report into the review of the Market Abuse Regulation (MAR) guidelines on delayed disclosure. This follows its consultation on review of the MAR guidelines on delay in the disclosure of...
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...
Check out our new and improved regulatory timeline
In conjunction with the FIN. blog, we have launched our new and improved horizon scanning tool over on the Womble Bond Dickinson website. Our timeline highlights key regulatory deadlines, legislation and insights...
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...
ECB comments on European Parliament’s Banking Union Annual Report
The European Central Bank (ECB) Banking Supervision has published its comments on the input provided by the European Parliament as part of its “Resolution on Banking Union – Annual Report 2022”. The...
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...
EBA publishes cover note for draft RTS on AML/CFT database
The EBA has published a cover note for its submission of the draft regulatory technical standards (RTS) under Article 9a(1) and (3) of Regulation (EU) No 1093/2010, setting up an AML/CFT central database. The database...
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...
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