Emma RadmoreOFSI has published guidance on the annual frozen asset review reporting form. The guidance explains the requirement for all persons who hold or control funds or economic resources that belong to or are controlled by a...
Category - Financial Crime Prevention
EBA speaks on AML
Jose Manuel Campa, EBA Chair, spoke to ECON on the importance of consistent application of AML legislation. He explained the ESAs’ current powers, and the guidelines already published. He said EBA is working on...
PRA writes to banks on AML risks
PRA has written a Dear CEO letter bringing banks’ attention to EBA’s opinion on the ML/TF risks in prudential supervision, and confirm it will continue to consider these concerns as part of its prudential...
HMRC cracks down on ML breaches
HMRC has updated its list of actions against businesses that are not complying with the MLR and published details of a £7.8m fine levied on a money transmitter. It imposed the fine on Touma Foreign Exchange Ltd after...
ECB speaks about work and priorities for year ahead
The Chair of the Supervisory Board of the ECB has addressed the European Parliament’s Economic and Monetary Affairs Committee at its first ordinary hearing in 2019. Comments covered: key supervisory priorities for...
Roseyna JahangirTabernula defendant imprisoned
As a result of a conviction for money laundering following the “operation Tabernula” investigations, Richard Baldwin has been sentenced to 5 years and 8 months imprisonment. This follows convictions of...
FCA explains views on electoral polling and MAR
FCA has given guidance on how MAR might apply to information gained from electoral polling, and how firms should handle any information that might be inside information. It gives the example of how, if an established...
Jonny WilliamsEuropean Parliament Think Tank briefing on AML state of play
The European Parliament’s Economic Governance Support Unit has published a paper that outlines the current initiatives and actions targeting reinforcement of the AML supervisory and regulatory framework in the EU...
Data breaches and insider trading – lessons for public companies
We have written an article highlighting the risks of insider trading relating to a personal data breach, in the light of the SEC’s action against Equifax executives.
Audrey KohNCA gets UWO against Northern Irish woman
NCA served an unexplained wealth order , its 4th in total, on a Northern Irish woman living in London with suspected links to organised crime, in respect of her financing of 6 properties worth over £3m.
Transparency International Annual Plan
TI has published its annual plan for 2019-20. Key points include: the growth of TI to over 50 staff in the past 10 years should now lead to a period of stabilisation; the key successes of last year included the...
Market Watch focuses on insider dealing risks
The latest edition of FCA’s Market Watch focuses on FCA’s concerns on access to inside information, following the conviction of a former compliance officer for sharing information. FCA noted that Fabiana...
FMLC notes uncertainty in MLD5 definition of ‘virtual currencies’
In their (late) response to the consultation of the transposition of the Fifth Money Laundering Directive into UK law, the Financial Markets Law Committee has alerted Treasury to a potentially unintended consequence in...
FATF updates compliance ratings
FATF has published an updated table of assessment ratings. The ratings show how each member has fared in the assessments of compliance with each FATF standard. It has also updated its procedures for its fourth round of...
Commission calls for better AML measures
The European Commission is not happy with the levels of domestic implementation of various AML/CTF measures in Member States. It has carried out research and issued a Communication and several reports. Key conclusions...
OFSI updates post-Brexit sanctions pages
OFSI has added some more pages to its set of information on sanctions regimes that will apply if the UK leaves the EU without a deal. The new pages cover Burundi and Guinea.
Government responds on Overseas Entities Bill
The Government has responded to the recommendations in the Joint Committee Report on the Overseas Entities Bill. The Government welcomed the Committee’s views, and responded on key points as follows: while taking...
European Ombudsman supports Commission on AML 3rd country info
The European Ombudsman has published its decision in relation to a complaint brought by a member of the European Parliament whose request to the European Commission to give him public access to various documents...
JMLSG updates on Guidance
JMLSG has thanked all those who responded to its proposed changes on the chapters in Part II of its guidance addressing credit unions and brokerage services to funds. It has now put the finalised chapters to Treasury...
APPG calls for radical overhaul to whistleblowing legislation
The All Party Parliamentary Group for Whistleblowing has published its report following its formation in 2018 to consider the effectiveness of the Public Interest Disclosure Act 1998. The Report calls for “a...
Michelle ChanceSFO confirms DPA with metals tech firm
The SFO has announced that in 2016 it entered into a DPA with Sarclad Ltd, a technology provider for the metals industry. The DPA related to charges of corruption and failure to prevent bribery between June 2004 and...
FCA discusses AI in financial services
In a recent speech, Christopher Woolard of the FCA considered three lenses through which the FCA views the issues relating to AI: what are new, and what are existing issues; how to ensure that AI creates value for...
FCA announces money laundering conviction in insider dealing link
Reporting restrictions have been lifted such that FCA has finally been able to confirm a conviction it secured against Richard Baldwin in 2017 for dealing in criminal property. The property was related to FCA’s...
Government publishes economic crime plan
The Government, in conjunction with UK Finance, has published its 2019-2022 economic crime plan, setting out how it proposes to progress the priorities agreed by the Economic Crime Strategy Board in January. The key...
HMRC updates MLR appeals guidance
HMRC has updated its website with guidance on how to appeal against an HMRC decision, and how it sets penalties. The guidance explains what HMRC may levy penalties for, and what its remedies are. It also explains that...
Court backs bank on account closure
A payment institution has failed in its action against RBS, after the bank closed the institution’s accounts with it and ended the banking relationship. The payment institution (P) was an FX and payment services...
Treasury publishes AML supervision report
Treasury has published its AML and CTF supervision report for 2017-18. The report highlights the UK’s FATF evaluation report – which it notes recognises the UK regime as the strongest assessed to date. But...
FCA publishes annual report
FCA’s Annual Report and Accounts for 2018/19 lists its highlights from the past year, and appends several reports from specific business focuses. FCA notes that alongside deciding over 4,000 applications for...
Treasury Committee wants action against forged signatures
Nicky Morgan has written to the FCA and NCA, asking them to engage with the Bank Signature Forgery Campaign to address the allegations that home repossession and similar documents are not being signed by the authorised...
FCA updates MLR registration page
FCA has updated its page giving guidance to firms that are not authorised but nevertheless require to be registered with FCA for the purposes of the MLRs (such as commercial lenders, financial leasing entities and own...
UK Finance publishes payment account service guide
On 1 July, UK Finance published a voluntary good practice guide to help credit institutions providing access to payment account services and those seeking to access such accounts. The guide recommends that: all relevant...
Financial Crime Compliance Course
We are pleased once again to host the Financial Crime Compliance Professionals course for the Compliance Register. The course takes place this year on 25 September, and we will be presenting the morning session. ...
FCA announces insider dealing imprisonment for former compliance officer
A former compliance officer at UBS has been sentenced to 3 years’ imprisonment for insider dealing, following a prosecution brought by FCA. Fabiana Abdel-Malik used her position to acquire confidential and...
Wolfsberg Group publishes CBDDQ materials
The Wolfsberg Group has published a set of materials that supplement its correspondent banking DDQ. The materials include a set of videos that banks can use as training materials, and a detailed review of the DDQ...
FATF reports to G20
FATF has reported to the G20 Leaders’ Summit. The report summarises FATF’s current and ongoing workstreams, including its current focus on virtual assets, improving transparency and the availability of...
FATF plenary updates on strategy
The recent FATF plenary, under US presidency, celebrated FATF’s 30th birthday. The meeting discussed: key strategic initiatives, including how to mitigate risks from virtual asset activities, and how to assess...
Bank fined £45.5 million for failure to share suspicions of fraud with FCA
The FCA has announced that Bank of Scotland has been fined £45,500,000 (reduced by 30% from what would have been a £65 million fine) for its failures to be open and cooperative with the regulator and thereby breaching...
Government says overseas entity registration open in 2021
In response to a question in Parliament, Lord Henley said the Government “anticipates” that the overseas entities register will be open during 2021. There was no indication of whether that would be early or...
IOSCO Cyber Task Force report urges financial market regulators and firms to enhance approach to Cyber risks
The Board of the International Organization of Securities Commissions has published the Final Report of its Cyber Task Force. This report is intended be a resource for financial market regulators and firms to raise...
Law Commission calls for SAR guidance
The Law Commission has criticised the time that is wasted because lack of proper guidance leads to too many low quality SARs being made, which wastes both the time and money of those gathering information to report, and...
CLLS warns on MLD5 crypto plans
The City of London Law Society has published its response to Treasury’s consultation on MLD5 implementation. Its comments focused on two key areas: crypto-assets: CLLS is nervous about the suggestion that the UK...
BVCA responds on MLD 5
BVCA has responded to Treasury’s consultation on MLD5 implementation. Its key observations are: where the underlying CDD obligation involves subjectivity or judgement, the concept of taking “reasonable...
Foreign Affairs Committee slams post-Brexit sanctions policy
The Foreign Affairs Committee has heavily criticised the UK’s position on post-Brexit sanctions. It says Brexit will bring about a “seismic shift” in how the government applies its sanctions policies...
FCA finds culture the main issue in capital market AML review
FCA has published its thematic review of money laundering risks in the capital markets. The review covered 19 firms representing a broad range of market segments and participants and focused on secondary markets. FCA...
FCA and Dutch Authority agree on closer partnership
The FCA and the Dutch Authority for the Financial Markets have agreed to work more closely together in order to protect and enhance the integrity of their financial systems. The regulators will share information to...
Angie BamboulisEBA reports on 2018 work
The EBA has published its Annual Report for 2018. The Report records the key areas of focus for the EBA in 2018, in particular the development and maintenance of the single rulebook, and the work on payments and the...
OFSI fines firm for dealing with sanctioned individual
OFSI has announced that on 8 March 2019, it imposed a monetary penalty of £10,000 against Travelex (UK) Limited for contravening the EU Egypt financial sanctions regime, in relation to a payment of £204 belonging to a...
APP scam victims provided greater protect under new Code
The APP Scams Steering Group has published the new voluntary Code which gives customers greater protection against APP scams and provides victims, who meet certain requirements, with full refunds. To help protect...
Treasury makes Cyber-Attack Asset Freezing Regs
Treasury has made the Cyber-Attacks (Asset-Freezing) Regulations 2019. The Regulations, made following ah EU Regulation, create a new set of designations under the financial sanctions regime aimed at potential cyber...
Have you replied on MLD5?
We’ve written a detailed article on Treasury’s proposals for MLD5 implementation to go with our summary post. Deadline for comment is 10 June.
Joint Committee slams Overseas Entities Registration Bill
The Joint Committee on the Draft Registration of Overseas Entities Bill has criticised the draft legislation. It notes it is now 3 years since the proposals were announced, with increasing public concern and calls from...
Over £27 million lost to scams involving crypto and forex investments
The FCA and Action Fraud have reported that victims have lost over £27 million in total in 2018/2019 to crypto and forex investment scams. Action Fraud reports show that on average, victims were each scammed out of...
EC fines banks for FX cartel
The European Commission has fined 5 banks for taking part in 2 cartels involving 11 currencies in the spot fx markets. It has imposed fines totalling over €800m on Barclays, RBS, Citigroup and JP Morgan for the so...
Group AML Regulation takes effect from September
The 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:...
Government responds on Bribery Act report
The Government has published its response to the Committee report on the effectiveness of the Bribery Act. Among other things, the report had looked at the deterrent effect of the Bribery Act and its effects on SMEs. ...
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...
SRA reviews lawyer AML compliance
SRA has published the results of a thematic review it carried out on law firms that provide trust and company services, looking at their compliance with the MLRs 2017. The review followed up a more general review in...
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...
FCA 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.
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...
JMLSG 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...
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...
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...
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...
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...
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.