Emma RadmoreThe Regulation setting out the measures firms covered by MLD4 must take when they are members of a group with offices outside the EU has been published in the OJEU. It will apply from 3 September 2019. The Regulation:...
Category - Financial Crime Prevention
BEIS consults on corporate transparency reform
BEIS is consulting on the reform of Companies House and its role in transparency of UK corporate entities. The consultation addresses concerns that the current company registration framework is too open to misuse. To...
Government responds on economic crime report
The Government has responded to the Treasury Committee’s report on economic crime. Nicky Morgan, commenting on the Government response, said she was glad that some Committee recommendations had been taken into...
OFSI makes Counter-Terrorism International Sanctions guidance
OFSI, together with the FCO and Export Control Joint Unit, has made guidance on the UK’s counter-terrorism and international sanctions, specifically anticipating a no-deal Brexit. The guidance is made under SAMLA...
FCA fines for market abuse control failings
FCA has fined Linear Investments Limited £409,300 for the firm’s breach of Principle 3 by failing to take reasonable care to organise and control its affairs responsibly and effectively. In particular, FCA found...
HMRC publishes MLR miscreant list
HMRC has updated the list of businesses it has fined for failing to comply with the MLRs. The list includes references to which regulations the firms breached, the amount of the fine and whether the firm appealed or is...
EBA Opinion on Passport Notifications for E-Money Agents and Distributors
The EBA has published an opinion on the nature of passport notifications regarding agents and distributors under PSD2, 2EMD and MLD4. In particular, the opinion provides clarity on: the criteria that national competent...
Angie BamboulisFCA prioritises culture, customers and crime prevention
FCA’s Business Plan for 2019/2020 holds few surprises. It highlights 4 ongoing cross-sector priorities and three additional longer-term priorities. FCA will focus on: culture and governance, not least in SMCR...
Wholesale brokers ignore Dear CEO letter at their peril
FCA has written a Dear CEO letter to wholesale brokers setting out its thoughts on the key harms the sector poses. The letter explains that MiFID 2 and MAR have significantly raised expectations on market participants...
Treasury presses on with MLD5 implementation
HMT has opened a consultation on the implementation of MLD5. Treasury proposes a number of changes to UK law, and seeks views on its proposals in several areas. Aspects of MLD5 addressed in the consultation include:...
FCA fines SCB £100m for AML failings
FCA has imposed its second largest ever fine for AML controls failings. It has fined Standard Chartered Bank £102.2m for failings in its wholesale bank correspondent banking business and its branches in the UAE. It...
FCA gives investigations update
Mark Steward has spoken on partly contested cases, the pipeline and AML investigations. Key points included: the partly contested case process has, since 2017, allowed those subject to FCA disciplinary action to choose...
SFO speaks on fighting fraud and corruption
Lisa Osofsky has spoken about the global fight against fraud and corruption. One of the key points of her speech is the need to understand how different jurisdictions and different regulators operate. She gave the...
Lloyd’s warns on sanctions evasion tactics
Lloyd’s has issued a new market bulletin on how to counter North Korean and other sanctions evasion tactics. The bulletin points out the constant evolution of tactics to evade sanctions, including using otherwise...
OFSI publishes Brexit counter-terrorism guidance
OFSI has published guidance on the Counter-Terrorism (Sanctions) (EU Exit) Regulations 2019. The Regulations, made under SAMLA, impose various bans and requirements, and create offences with penalties. The Regulations...
2019 Financial Crime Compliance Summit
Emma Radmore is pleased to be presenting at the Compliance Register’s Financial Crime Compliance Summit on 25 June. To book, please see this timetable and contact the Compliance Register.
Commercial BankingConductEnforcement & LitigationFinancial Crime PreventionFundsInsuranceInvestmentsPensionsRegulated MortgagesRetail Banking
Europe reaches political agreement on reforms to EU supervision
The European Parliament and Member States have reached agreement on core elements of the reform of European supervision of financial markets, including strengthening the supervisory framework in the area of anti-money...
Roseyna JahangirJMLSG 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...
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...
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...
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...
FIN. TeamLords 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...
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...
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...
Commercial BankingConductConsumer CreditEnforcement & LitigationFinancial Crime PreventionFintech & InnovationFundsInsuranceInvestmentsPayment Services & Electronic MoneyPensionsRegulated MortgagesRetail Banking
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...
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...
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...
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...
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...
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...
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...
Commercial BankingConsumer CreditFinancial Crime PreventionFintech & InnovationFundsInsuranceInvestmentsPayment Services & Electronic MoneyPensionsRegulated MortgagesRetail Banking
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...
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:...
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...
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...
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...
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...
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...
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...
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...
Consumer CreditEnforcement & LitigationFinancial Crime PreventionPayment Services & Electronic MoneyRetail Banking
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...
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...
Consumer CreditFinancial Crime PreventionFintech & InnovationFundsInsuranceInvestmentsPayment Services & Electronic MoneyRegulated MortgagesRetail Banking
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...
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...
Commercial BankingConductConsumer CreditEnforcement & LitigationFinancial Crime PreventionFintech & InnovationFundsInsuranceInvestmentsPayment Services & Electronic MoneyPensionsRegulated MortgagesRetail Banking
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...
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...
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...
Consumer CreditFinancial Crime PreventionFintech & InnovationFundsInsuranceInvestmentsPayment Services & Electronic MoneyPensionsRegulated MortgagesRetail Banking
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...
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...
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 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...
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...
Consumer CreditEnforcement & LitigationFinancial Crime PreventionFintech & InnovationFundsInsuranceInvestmentsPayment Services & Electronic MoneyPensionsRegulated MortgagesRetail Banking
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...
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...
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...
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...
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...
Barry StimpsonFCA 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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
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...