The FCA has issued a press release confirming that a confiscation order of £291,070.36 has been obtained against a convicted fraudster. Barry Starling is already serving a 5 years’ prison sentence for defrauding...
Category - Financial Crime Prevention
Rachael PrestonFCA: New Form (cyber resilience questionnaire)
The FCA has published a new cyber resilience questionnaire. The questionnaire must be completed by competent parties and signed-off at board level as a “true and accurate reflection of the firm’s cyber...
Caroline StevensonNCA updates SAR guidance
NCA has published updated guidance and glossary codes for use when making SARs. The booklet includes a checklist, detail on codes, an alphabetical list, examples and an aide memoire.
Emma RadmoreOFSI 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...
Basel Committee consults on AML cooperation
The Basel Committee on Banking Supervision is consulting on draft guidelines on interaction and cooperation between prudential and AML/CFT supervision. It wants to enhance the effectiveness of banks’ AML/CFT...
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...
FSB holds Paris plenary
The FSB Plenary met in Paris to review vulnerabilities in the global financial system and to discuss advances in FinTech. The Plenary also agreed its work programme for 2020. Current vulnerabilities The Plenary...
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...
Treasury Committee calls for bank action on COP and financial crime prevention
The Treasury Committee has published its response to the second strand of the Economic Crime enquiry, looking at the effects of financial crime on consumers. The report focuses on authorised and unauthorised payment...
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?
OFSI fines for sanctions breach by phone call facilitation
OFSI has fined a phone carrier company for indirectly facilitating phone calls to an entity designated under the Syrian sanctions regime. Telia Carrier UK Limited indirectly facilitated the calls to SyriaTel, which...
FATF publishes beneficial ownership best practice
FATF has published a report setting out examples of best practices to help jurisdictions establish a satisfactory measure of transparency regarding the identification of the beneficial ownership of legal persons. In...
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...
Roseyna JahangirOFSI introduces Nicaragua sanctions regime
OFSI has set up a financial sanctions regime in relation to Nicaragua. The EU introduced the sanctions on 14 October and they will be in force in the UK from 6 November.
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...
Commission produces high-risk third countries “non-paper”
ECOFIN has provided the Permanent Representatives Committee with a Commission “non-paper” setting out how it proposes to refine its methodology for identifying high-risk third countries for AML purposes...
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...
Not POCA “acquiring” to receive monies obtained by fraud
The Court of Appeal, in the case of R v Haque, has allowed an appeal on the point of whether a person commits the offence under POCA of acquiring criminal property when it arrives into his bank account as a result of a...
Treasury approves JMLSG updates
Treasury has approved updated chapters in Part II of the JMLSG Guidance. The chapters now approved are:
credit unions
asset finance
brokerage services to funds.
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...
Borrower can withhold payment because of risk of US secondary sanctions
The High Court has held that a UK borrower was entitled to withhold payments under a loan from an entity that was a US Blocked Entity for fear of possible consequences from US secondary sanctions that would...
EIOPA publishes evaluation of Cyber Risk for Insurers
EIOPA has published the findings of its study of the cyber insurance market, covering both cybersecurity challenges and cyber underwriting practices. To produce its report, EIOPA surveyed 41 large (re)insurance groups...
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...
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...
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...
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...
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...
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...