FIN.

Category - Financial Crime Prevention

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...

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...

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...

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...

Lords 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...

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...

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...

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...

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...

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:...

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...

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...

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...