FIN.

Category - Financial Crime Prevention

OFSI confirms Turkey sanctions regime

OFSI has confirmed that the EU has introduced a sanctions regime relating to Turkey, with a view to designating those involved in unauthorised drilling activities in the Eastern Mediterranean. No names are on the list...

NCA publishes 2019 SARs report

The latest annual report on SARs from NCA highlights: a record number of SARs processed (over 475,000); an increase of over 50% in DAML SARs; and over £131m denied to criminals as a result of DAML requests. Average...

FATF consults on digital identity

FATF is consulting on the use of digital ID systems for CDD.  It has published some currently unapproved guidance and is asking for views on a number of key issues. It asks for comment by 29 November.

SRA calls for more AML action

The Solicitors’ Regulation Authority has updated its warning notice to solicitors, stressing the need to have in place appropriate AML measures.  Despite previous warnings, it still found many firms did not have...

New AML and sanctions articles

We have written extended versions of FIN posts for Financial Regulation International and Money Laundering Bulletin:

Take care before you charge: acquiring criminal property; and
The third arm of US sanctions?

Treasury updates high-risk jurisdictions

Treasury has updated its AML advisory notice, following the recent FATF meeting.  There is no change to the advice on North Korea and Iran.  The counties in relation to which Treasury recommends firms take appropriate...

Regulatory risks of Stablecoins in focus

The emergence of global stablecoins has been a focus point over the past few days, with the FSB, FATF and the G7 Working Group on Stablecoins all publishing statements on the impact and risks of the development of these...

FCA writes to UK Finance on SARs and STORs

FCA has published a letter it wrote to UK Finance in September explaining its responsibilities in relation to SARs and STORs under MAR.  The key point the letter makes is to stress that, while FCA works closely with the...

FCA consults on AML crypto supervision costs

FCA is consulting on how it will recover the costs it will incur when it becomes the AML/CTF supervisor for crypto-asset business from 10 January 2020.  Treasury has not yet finalised the regulations that will implement...

OFSI publishes annual report

OFSI’s annual review for 2018-2019 highlights: the first imposition of monetary penalties; work to prepare for Brexit; the positive reaction to OFSI in the FATF evaluation; that during the year 32 regimes were...

Treasury approves JMLSG Chapter 17 changes

Treasury has approved revisions to Chapter 17 of Part 2 of the JMLSG guidance. The chapter covers syndicated lending, and has been rewritten by the Loan Market Association. Among the changes are content that: explains...

ESAs publish AML risk opinion

The ESAs have published their second joint opinion on the ML/TF risks affecting the EU’s financial sector. Its key concerns are around monitoring and reporting of suspicious transactions, particularly for...

ESMA consults on MAR review

ESMA is consulting on its required review of MAR. Its paper looks at many issues including: whether to include spot FX within MAR; differing concepts of inside information and delayed disclosure of it; whether the...

EU Presidency notes AML way forward

The Presidency of the EU has noted the substantial enhancements to the AML/CFT framework over recent years but has nevertheless expressed concern on: differences in interpretation and wide national discretion in framing...

BoE reports on 2018 cyber simulation exercise

BoE has reported on the outcomes of its 2018 sector wide exercise (SIMEX), which tested how the UK finance sector would react to a prolonged and broad cyber attack. The exercise, which took place in real time, involved...

MEPs criticise poor AML compliance

MEPs say lack of co-operation and poor information sharing between authorities and FIUs are the main obstacles to preventing money laundering, but also say national authorities should have sufficient resource and power...

FATF updates compliance table

FATF has published further reports on Iceland, Hong Kong, China and Greece’s AML/CFT measures and as a result updated its consolidated table of assessment ratings.

OFSI publishes frozen asset review guidance

OFSI 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...

Government answers AML questions

In response to questions posed in Parliament, the Secretary of State for the Home Department confirmed that the UK has not opted in to the Directive on criminal sanctions for money laundering our legislation is already...

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...

FCA speaks on skimmers and scammers

Charles Randell has spoken on FCA’s commitment to the Economic Crime Plan and the importance of embedding fraud prevention in the development of new savings and investment policies. He encompassed within...

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...

Tabernula 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...

NCA 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...

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...

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...

SFO 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...

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...

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...

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. ...

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...

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...

EBA 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...

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.

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...

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. ...

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...

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...

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...

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.

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...