Emma RadmoreSFO has confirmed Petrofac’s conviction for seven separate counts of failure to prevent bribery between 2011 and 2017. The convictions relate to failure to prevent former senior group executives from using agents...
Category - Financial Crime Prevention
EU – US Joint Financial Regulatory Forum updates on initiatives
EU and US participants in the EU – US Joint Financial Regulatory Forum met virtually at the end of September as part of their ongoing financial regulatory dialogue. The participants included, amongst others: the...
Emma BondFCA portfolio letter to wealth management and stockbroking firms
FCA has published its portfolio supervision letter to the wealth management and stockbroking portfolio. The letter focuses on FCA’s plans for the Consumer Duty and what it would mean for firms. It also notes the...
Regulators write to firms on cyber findings
BoE, PRA and FCA have written to firms on their 2021 CBEST thematic findings. The comments are addressed to the individual SMF holder with responsibility for cyber, noting that the individual is responsible for:...
JMLSG confirms changes and consults on more
JMSLG has confirmed the changes to its Part II guidance on Trade Finance (although the changes remain subject to Treasury approval), and is consulting on changes to Chapter 5.7 in Part I of its guidance. The changes...
Ombudsman News looks at fraud and scam complaints
The latest edition of Ombudsman News warns customers to be extra vigilant about fraud and scams following a significant rise in cases seen by the FOS in the last 12 months. The FOS received 5,025 fraud and scam...
Lucy HadrillEDPS welcomes EU’s plans for AML overhaul
The EDPS has published his opinion on the European Commission’s proposed package of AML changes. The EDPS welcomes the proposals but says further clarifications are needed to minimise intrusion into individuals’...
Treasury updates on economic crime levy
The Treasury consultation on the imposition of an economic crime levy concluded last October and Treasury has published a summary of the responses it received. The Government is now consulting until 15 October on the...
Basel Committee calls for greater resilience against cyber threats
The Basel Committee has published a newsletter encouraging banks to adopt more resilient measures relating to cyber security. This was triggered in part by the increase in cyber threats since the beginning of the COVID...
Specialist police unit prevents £85 million of fraud
A specialist police unit, the Dedicated Card and Payment Crime Unit (DCPCU), has prevented a total of £85 million worth of fraud in the first half of 2021. Its activities also resulted in some 49 criminal convictions...
OPBAS publishes progress report
OPBAS has published its latest report on its work to bring compliance with AML requirements in the professional services supervisory sector up to the levels in other sectors. Its report shows there are still...
Tech companies join banking industry in fight against fraud
Several major technology companies including Google, Facebook, Instagram, Twitter, Amazon, Microsoft and TikTok have pledged to support UK Finance’s anti-fraud campaign – Take Five to Stop Fraud. The tech...
Regulators write to firms on trade finance expectations
PRA and FCA have sent a joint Dear CEO letter to firms who carry out trade finance activity. The regulators want to ensure firms understand what is expected of them. Both regulators consider there is often insufficient...
Court rules that ML offence can be committed by predicate offender
A Romanian court had sentenced an individual to imprisonment for money laundering. The proceeds of crime in question were the proceeds of tax evasion committed by the same individual. As part of an appeal (which was...
OFSI calls for frozen asset reports
OFSI has called for any firm holding assets of designated persons to submit the annual frozen assets report by 15 October, reporting on the value of all assets as of close of business on 30 September. As usual, the...
FCA Chair speaks on risks of token regulation
Charles Randell, Chair of the FCA and PSR has delivered a speech on the risks of regulating crypto tokens. Speech highlights include: whilst platforms’ efforts to crack down on fraudulent advertisements are welcome, a...
TI responds on corporate criminal liability
Transparency International has responded to the Law Commission consultations on reform of corporate criminal liability. The response notes: that reform is long overdue, given the difficulties in establishing corporate...
FCA warns firms about Afghanistan financial crime risks
FCA has reminded firms that the recent developments in Afghanistan may have an impact on the way they need to assess financial crime risks. It has warned them to consider what impact events may have on patterns of...
FCA publishes supervisory notice against Dolfin Financial
FCA has published a supervisory notice sent to Dolfin Financial (UK) Limited in March. The requirements in the notice have now largely been cancelled as Dolfin entered special administration. FCA has also redacted parts...
HMRC updates on MLR fines
HMRC has updated its list of businesses that have not complied with the MLRs. Among the actions: a fine of £1,000 on an accountancy service provider that failed to provide documents when requested; a fine of £6,300 on...
Update on EU consultations on AML/CFT rules
In July 2021, the European Commission unveiled an ambitious package of legislative proposals to strengthen the EU’s AML/CFT rules. The closing date of the Commission’s various consultations on these...
LSB looks at next steps for CRM Code
LSB says the responses it received to its call for input on the CRM Code suggest the risk of APP scams is not evenly distributed among payment providers, and some respondents thought it did not cater for certain...
OFSI fines fintech for sanctions breach
OFSI has fined TransferGo Limited (an authorised payment institution) £50,000 for making funds available to a person designated under the Ukraine sanctions regime. The fine relates to 16 transactions where TransferGo...
FCA launches new whistleblowing webform
The FCA has launched a new online form for reporting concerns about wrongdoing by firms or individuals to the FCA. It has also published a new webpage to help whistleblowers decide where to make a report.
EBA consults on AML compliance officers
EBA is consulting on new guidelines on the role, tasks and responsibilities of AML/CFT compliance officers within supervised entities. The guidelines also consider the wider governance set up, including at group level...
FCA gets illegal money lender charges removed
FCA has obtained an order from the High Court to remove over 600 charges, notices or restriction that had been registered by an illegal money lender at the Land Registry. FCA has started several legal proceedings...
FCA publishes individual ban notice
FCA has published a decision notice noting its decision to ban Markos Markou, director and CEO of a mortgage broker, and to fine him £25,000. FCA considers Mr Markou not fit and proper to perform his senior management...
FCA writes to firms on SME lending and BBLS fraud
FCA has published a Dear CEO letter on its expectations of firms in reporting BBLS fraudulent activity. It notes the excellent levels of cooperation within the industry throughout the pandemic and in relation to BBLS...
Treasury consults on amendments to MLRs
The Treasury is consulting on amendments to the MLR 2017 Statutory Instrument 2022. These amendments will allow the government to make some time-sensitive updates to the MLRs, which are required to ensure that the UK...
EU Commission overhauls AML/CFT rules
The European Commission has unveiled an ambitious package of legislative proposals to strengthen the EU’s AML/CFT rules. The proposals include: a new EU AML/CFT Authority (AMLA) – the new AMLA will coordinate...
FCA publishes Business Plan
FCA’s 2021/22 Business Plan highlights: how FCA has to change as the environment in which it operates changes and how investment in technology and changes in culture are key to this; the need to enable customers...
CLLS responds on fin proms
The City of London Law Society has responded to FCA’s discussion paper on changes to the financial promotion rules for high risk investments and for firms approving financial promotions. It: is concerned the...
G20 Finance Ministers and Central Bank Governors meeting
The G20 Finance Ministers and Central Bank Governors (FMCBGs) have had their third official meeting under the Italian G20 Presidency. Highlights include: The global outlook has improved, mainly thanks to the roll out of...
Treasury updates AML advisory
Treasury has updated its advisory notice on high right third countries for AML purposes. The notices follow the FATF updates, and the list replicates the FATF list. Post-Brexit, Treasury now included the list in...
SFO publishes Amec Foster Wheeler Energy DPA
SFO has published the DPA judgment from Lord Justice Edis in respect of Amec Foster Wheeler Energy. The firm is now owned by John Wood Group which was willing to undertake to meet the firm’s liabilities. ...
Home Office warns on SARs and civil litigation
The Home Office has issued a circular setting out its position on the use of SARs in private civil litigation. Its aim is to protect reporters and subjects of SARs and the integrity of the regime. A previous circular...
FCA urges consumers to protect pension savings
Following its response to the Work and Pensions Committee’s report on protecting pension savers from pension scams, the FCA is urging consumers to be wary of pension scams and to protect their savings. The FCA...
Responses to Work and Pensions Committee report on protecting pension savers
On 28 March 2021, the Work and Pensions Committee published its Fifth Report of Session 2019–21, Protecting pension savers–five years on from the pension freedoms: Pension scams. The Government, the FCA and the Pensions...
Hannah FrostFATF review of FATF Standards on virtual assets and virtual asset service providers
The Financial Action Task Force (FATF) has completed a second 12-month review of the implementation of its revised Standards on virtual assets and virtual asset service providers (VASPs). This comes two years after the...
FATF reports on technology opportunities and threats
FATF has published a paper looking at the opportunities and challenges of new technologies for AML and CFT. The report looks at emerging and available technology based solutions, and the conditions, policies and...
UK and Singapore agree landmark Financial Partnership for financial services
An historic new partnership for financial services between the UK and Singapore, which will help to boost jobs and investment in the UK, has been agreed by the Chancellor. The Financial Partnership is a new agreement...
Wolfsberg Group highlights importance of showing effective AML programme
The Wolfsberg Group has reminded of its suggestions for how financial institutions can have effective AL/CTF compliance programmes, and of its 2020 recommendations for ensuring effective outcomes. The reminder comes...
Dear CEO letter on retail bank AML failings
FCA has finally published the Dear CEO letter it sent to retail banks on 22 May on AML failings. The letter sets out the common themes FCA has observed and highlights its disappointment that it continues to find certain...
Damning report on EU AML efforts
The European Court of Auditors has published a damning report on the EU’s efforts to fight money laundering in the banking sector. A review found institutional fragmentation and poor coordination at EU level. The...
FATF holds plenary
FATF has held its June 2021 plenary session, at which it finalised a number of reports. Key outputs include: no changes to the highest risk jurisdictions, but Haiti, Malta, the Philippines and South Sudan have been made...
More of FS Act comes into force
The second Commencement Order under the FS Act 2021 brings into force: on 28 June the provisions on forfeiture of money in relation to EMIs and payment institutions, as they extend to Northern Ireland; and on 1 July...
FCA speaks on tough regulation and the future
Nikhil Rathi has spoken on building a regulatory environment for the future. He focused on the opportunities Brexit has given for the UK to tailor its rules. Much of his speech addressed ESG issues, but he noted also...
LSB updates on CRM code review
LSB has published its follow up review of the CRM Code in respect of firms’ approach to reimbursing customers. Provision R2(1)(c) of the Code allows firms to decline reimbursement in specific cases. LSB looked at...
Taskforce reports on regulatory reform
The Taskforce on Innovation, Growth and Regulatory Reform has provided its report on reshaping regulation in the UK to the Prime Minister. The report calls for: a common law approach proportionality in application...
Artificial intelligence in financial services
The Alan Turing Institute has published a report which looks at the use of AI and the importance of responsible innovation in the financial services sector. The FCA-commissioned report is split into 4 key sections:...
Treasury Committee to hold economic crime hearing
The Treasury Committee will hold its next evidence session in its Economic Crime Inquiry on 14 June. The witnesses will come from the FCA, PSR, HMRC and Companies House.
FCA takes 13 firms into new sandbox cohort
FCA has accepted 13 firms into cohort 7 of the regulatory sandbox. It received 58 applications, mainly from firms in the retail investment and retail lending sectors. FCA was interested in proposals that saw more...
EBA finalises PSD2 incident reporting guidelines
EBA has finalised and published its revised guidelines for major incident reporting under PSD2. PSD2 requires PSPs to report major operational or security incidents to their supervisors where those incidents are likely...
Law Commission consults on corporate criminal liability
The long-awaited Law Commission consultation on corporate criminal liability was published on 9 June. The Law Commission notes that companies can only be found guilty of offences that require proof of a certain mental...
CPS updates on failure to disclose prosecution factors
CPS has updated its guidance on prosecuting “standalone” failure to disclose offences under s330 POCA. It can now (from 2 June) bring a prosecution regardless of whether a predicate money laundering offence...
FCA extends temporary crypto registration regime
FCA has extended the date of the Temporary Registrations Regime for cryptoasset businesses until 31 March 2022. The regime, which allows businesses that were in existence and applied for registration before 16 December...
Market Watch looks at use of orderbook data
The latest edition of Market Watch explains how FCA uses orderbook data to help conduct surveillance to identify suspected market manipulation. It uses its own data combined the STORs and other notifications it...
FCA confirms role in RLS
FCA has confirmed its approach to regulating firms in relation to the Government Recovery Loan Scheme that was launched by the British Business Bank on 6 April to replace the BBLs and CBILS which are now closed to new...
PRA speaks on Cyber Risk
Lyndon Nelson has spoken about the steps PRA takes to counter cyber risk. He described how PRA has looked at operational resilience in the context of cyber risk by testing, capabilities and coordination. It has carried...
PSR consults on CoP for all
The PSR has issued a call for views on whether it should direct additional banks, building societies and financial institutions to offer Confirmation of Payee. Currently only the 6 biggest banking groups offer it. The...
FCA delivers speech on the rise in online scams
Mark Steward, Executive Director of Enforcement and Market Oversight at the FCA, spoke at the FCA Investigations & Enforcement Summit on the rise in scams and the threat to a legitimate financial services industry...
IAIS consults on AML guidance
IAIS is consulting on changes to its “application paper” on AML and CFT in the insurance industry. The paper was originally published in 2013, and IAIS has revised it in light of various FATF updates and...
SFO publishes business plan
SFO’s business plan for 2021/22 includes nothing of great surprise. Its main priorities remain: investigating and prosecuting the most complex cases of fraud, bribery and corruption; delivering justice, upholding...
FCA speaks on UK regulation and FCA transformation
Nikhil Rathi has spoken on FCA’s vision for regulation of the future. His audience was overseas banks, and he focussed on FCA’s priorities in regulating overseas firms at the same standards as domestic...
EBA consults on AML/CTF database
EBA has published for consultation draft RTS on a central AML/CTF database. The idea is for the database to contain details of weaknesses in systems and controls within individual firms identified by their national...
Financial Services Bill – what changed?
Read our article for Compliance Monitor on the key changes from the original Financial Services Bill to the Act given Royal Assent – and some of the proposals that weren’t included.
FCA fines for financial crime failings in cum/ex trading
FCA has imposed its first fine for failings in cum/ex trading, dividend arbitrage and withholding tax reclaim schemes. It fined Sapien Capital £178,000 for systems and controls failings that led to the risk of...
Treasury updates on economic crime plan
Treasury has updated on the Government’s progress on its Economic Crime Plan. It is pleased to see an improved understanding of the threats to the economy and the moves that have been made to address...
UK sanctions and AML regulations extended to the Isle of Man and overseas territories
The UK government has published the Global Anti-Corruption Sanctions (Isle of Man) Order 2021 and the Global Anti-Corruption Sanctions (Overseas Territories) Order 2021 which came into effect on 29 April 2021. The Order...
Duncan ScottFCA publishes Insights from Cyber Coordination Groups
FCA has shared a broad overview and insight into the discussions held at its quarterly Cyber Coordination Group (CCG) meetings in 2020. In 2020 FCA convened 157 firms in 7 CCGs, with each CCG representing a specific sub...
Government makes Global Anti-Corruption Sanctions Regulations
The Government has made the Global Anti-Corruption Sanctions Regulations 2021 using its powers under SAMLA. The Regulations took effect one hour after being made, at noon on 26 April. They give the Secretary of State...
HMRC updates on MLR non-compliance
HMRC has issued its periodical update on businesses that it has found to be non-compliant with the MLRs. Its latest report covers the quarter from February 2020 – January 2021. The largest fines have been on MSBs...
OFSI blogs on licensing
OFSI has published a blog on licensing under the sanctions regime, prompted by the changes to the UK sanctions regime post-Brexit. The blog gives an overview of the licensing process, including OFSI’s top tips on...
FCA takes criminal action for unauthorised mortgage activities
FCA has started criminal proceedings against 2 individuals for unauthorised activities relating to mortgages. Larry Bareto traded as an unauthorised firm and Tassib Hussain is an accountant. Over a 3 year period Mr...
JMLSG consults on changes to Trade Finance guidance
JMLSG is consulting on changes to the trade finance chapter of part 2 of its guidance. The changes update explanations and references and reformat the text on developing a risk-based approach. It asks for comments by...
LSB updates CRM Code
The LSB has published updates to the CRM Code following its review. The new provisions include those on governance and oversight, and will take effect from 14 June 2021.
LSB looks at APP scam prevention
LSB has stressed the importance of preventing APP fraud in the first place, rather than just ensuring customers who suffer can be reimbursed – critical though that is. It notes that the increase in online and...
FS Bill continues in Lords
The Financial Services Bill is scheduled to continue its Report stage in the House of Lords next week, with some further amendments being tabled.
FCA speaks on AML controls
Mark Steward has spoken on the importance of “purposeful” AML controls. He headlined: the current prosecution for failings in systems and controls to monitor and scrutinise significant cash deposits, and the...
OFSI updates guidance suite
OFSI has updated its suite of guidance on financial sanctions, including its guidance on monetary penalties, which incorporates some of the lessons OFSI has learned through its case work. The new guidance will apply for...
FCA extends financial crime reporting obligation
Following its consultation in August 2020, the FCA has announced it is increasing the number of firms that need to submit an annual REP-CRIM return from c.2,500 to c.7,000 firms. In summary, the following additional...
Treasury updates high risk jurisdictions list
Treasury has updated its AML advisory notice on high risk jurisdictions. The UK is introducing legislation that will define high risk third countries and will replicate the FATF list, in place of referencing the EU MLD4...
FCA encourages individuals to report wrongdoing
The FCA has launched its campaign ‘In confidence, with confidence’ to encourage individuals working in financial services to report potential wrongdoing to the FCA. The campaign highlights circumstances...
FATF updates guidance on risk-based approach to VAs and VASPs
FATF is updating its guidance on the risk-based approach to virtual assets (VAs) and virtual asset service providers (VASPs). The guidance is updated in six key areas and amendments seek to: clarify the definitions of...
IRSG publishes report promoting global regulatory coherence
The International Regulatory Strategy Group (“IRSG“) published a report entitled “Global Solutions to Global Problems”. The report aims to promote regulatory coherence in financial services to...
HMRC publishes AML supervision self-assessment
HMRC has published its assessment of its own performance as AML supervisor. It notes that it currently supervises over 30,000 businesses across the various sectors within its remit. It says its performance is broadly...
EBA consults on AML guideline change
EBA is consulting on changes to its guidance on risk-based supervision for AML/CFT purposes. It plans to include practical step-by-step approaches to help regulators understand some of the aspects of supervision they...
FCA takes action against NatWest for MLR breaches
FCA has started criminal proceedings against Nat West for breaches of the MLR 2007. It alleges that, over a 5 year period up to late 2016, the bank breached MLR 8(1), 8(3) and 14(1) in relation to funds deposited into...
NCA updates SARs guidance for supervisors
NCA has published an updated version of its guidance to AML supervisors on submitting better quality SARs. It reiterates the importance of: the SAR being clear and concise, explicitly setting out the reason for...
FS Bill finishes Lords Committee stage
The Financial Services Bill has finished its discussions at Committee Stage in the Lords. The next stage, the Report stage, has not yet been announced.
OFSI updates sanctions penalty guidance
OFSI has published an updated version of its guidance on monetary penalties for breach of financial sanctions, which will apply from 1 April and will apply for all cases where OFSI becomes aware of a potential breach...
FS Bill at Committee Stage in Lords – including new FTP offence
The Financial Services Bill is currently going through line by line scrutiny in the Committee stage in the House of Lords. Among the changes for debate are: an requirement for a member of the FCA governing body to have...
FATF publishes RBA guidance
FATF has published guidance for supervisors in applying a risk based approach to supervision of the AML supervised community. It aims to help those supervisors who have traditionally applied rules-based approaches to...
Proprietary injunction and Bankers Trust Order made in fraud case involving cryptocurrency
In the unreported case of Ion Science Ltd v Persons unknown and others (21 December 2020 – Commercial Court), the Commercial Court granted a proprietary injunction, worldwide freezing order and ancillary...
Scott NodderFCA fines and bans trader for market abuse
FCA has fined and banned a former market making trader for market abuse. Adrian Horn, formerly of Stifel Nicolaus Europe Limited executed trades with himself in a series of 129 wash trades in a particular security over...
EBA publishes ML risk opinion
EBA has published its biennial opinion on the ML and TF risks affecting the EU financial sector. The risks cover those of the whole sector as well as parts of it, and cover risks previously identified as well as new...
Sign up now: what’s new in financial crime prevention 10 March
In a change from the normal, we are hosting the first quarterly update of 2021 for MLROs.com. Sign up here and see you at 9:00 on 10 March.
FCA publishes details of STORs
FCA has published the number of STORs it received in 2020. There was a small dip at the beginning of the pandemic, but the amounts increased as the year went on, peaking at 421 in October, with a total of 3553 for the...
EBA revises guidelines on AML/CFT risk factors
EBA has published updated guidelines on money laundering and terrorist financing risk factors under MLD4. The changes: take account of legislative change; address new risks; strengthen the risk based approach; specify...
LSB sets roadmap for CRM Code review
LSB has published its planned activities for 2021 including updates on the wording of the CRM Bode and a call for input. Separate to its original plans it is already working on a review of the provision on its approach...
Home Office launches Modern Slavery statement registry
The Home Office has updated its guidance page on modern slavery statements following the launch of its new voluntary registry. The registry launched on 23 February, but the page was not active at the time we checked...
FATF publishes plenary outcome
FATF has published the outcome of its February plenary meeting. it approved new guidance on risk-based supervision; it will update its guidance on virtual assets and VASPs; it has agreed new guidance on proliferation...
Treasury and FCA discuss perimeter report
Treasury and FCA have met to discuss the September 2020 report on the regulatory perimeter. Discussions focused on: high risk investments and the potential need to review the current exemptions that allow marketing to...
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