FIN.

Category - Financial Crime Prevention

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...

Outcomes 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...

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...

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...

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...

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...

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...

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...

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...

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...

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...

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;...

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...

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...

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...

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...

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...

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...

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...

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...

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...

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...

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...

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...