FIN.

Category - Financial Crime Prevention

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...

SAR numbers increase but TI unimpressed

The NCA has reported a rise in SARs from the private sector in the past year.  It reports nearly 464,000 SARs received and processed in the year covered by its report.  However, Transparency International says this...

HMRC updates MLR help pages

HMRC has updated its website in respect of money laundering supervision. The updates include the addition of webinars on firms’ obligations and how HMRC applies its supervisory duties.

JMLSG updates guidance for MLR changes

JMLSG has updated its guidance to take account of changes to the MLR 2017 that came into force on 10 January. The changes ban firms from setting up anonymous accounts and passbooks or providing anonymous safe-deposit...

FCA publishes sector views

FCA has published its “Sector Views” setting out its observations from monitoring its 7 selected sectors of: retail banking retail lending general insurance and protection pensions and retirement income...

ESAs advise on crypto approach

ESMA and EBA have published papers on ICOs and crypto-assets. The ESMA paper clarifies which crypto-assets currently qualify as financial instruments and provides its views on gaps and risks. The paper identifies...

Government updates Blocking Order regulations

The Extraterritorial US Legislation (Sanctions against Cuba, Iran and Libya) Protection of Trading Interests)(Amendment) Order 2018 will take effect on 1 February 2019. It updates a 1996 order to reflect updates to the...

FCA updates on MAR compliance

The latest edition of Market Watch outlines FCA’s views on industry implementation of MAR. FCA stresses the importance of industry participants properly calibrating their risk assessments to the markets and asset...

FOS consults on plans for 2019/20

The FOS has published a consultation on its plans and budget for 2019/2020. It notes that from April 2019, its jurisdiction will be expanded by the addition of two significant areas of work: complaints made by SME...

FCA finalises new financial crime guidance

FCA has now finalised its guidance on insider dealing and market manipulation within the Financial Crime Guide. It received 8 responses to its consultation, generally positive. However, some respondents raised concerns...

FCA reports on cyber review findings

FCA has published the results of its study of cyber-resilience and security in 20 asset management and wholesale banking firms. Its review comprised firms of varying size, scale, operating models and geography. The...

Tribunal rules on Prodhan

The Upper Tribunal has ruled on an application by Mohammad Prodhan, former CEO of Sonali Bank (UK).  Mr Prodhan contended that FCA was time-barred from taking action against him. He also applied for a direction for his...

Companies House to do sanctions checks

Companies House has announced it now carries on additional checks on certain applicants for registration, to guard against designated persons using economic resources such as companies in an attempt to get round...

FATF publishes UK mutual evaluation

FATF has published the long-awaited mutual evaluation report on the UK’s measures to combat money laundering and terrorist financing. The report notes that, because of the exceptionally large funds flow through...

FCA decides to fine former Sonali CEO

FCA has published a decision notice setting out its proposal to find Mohammad Prodhan, the former CEO of Sonali Bank (UK) Ltd £76,400 in relation to the bank’s AML systems and controls. Mr Prodhan was responsible...

ECB publishes cyber resilience expectations

ECB has published its expectations on financial market infrastructures in terms of cyber resilience oversight. Its expectations are based on CPMI/IOSCO guidance and is aimed at providing the FMIs with clear steps on how...

Treasury makes SAMLA Regulations

Treasury has made the Sanctions Review Procedure (EU Exit) Regulations 2018. The Regulations, made under SAMLA, come into force on 7 January 2019 and address the mechanics of requesting reviews, variations or...

Standard Bank DPA comes to an end

SFO announced that the first DPA, agreed with what is now ICBC Standard Bank plc for breach of s7 Bribery Act, has come to an end after the bank successfully complied with its terms. The DPA lasted for 3 years. Its...

FCA publishes cyber resilience report

FCA has published the results of its survey on tech and cyber resilience, which showed that nearly half of all firms don’t upgrade or retire old IT systems in time, and only just over half say they can measure the...

1st SAMLA commencement order made

The first Commencement Order under the Sanctions and Anti-Money Laundering Act 2018 has been made. It brings into force the majority of the sanctions provisions in the Act that enable Ministers to make and implement...

SFO elaborates on bribery and DPAs

Matthew Wagstaff has spoken on SFO’s priorities and resourcing, and the successes of its collaborations with other enforcement agencies, particularly the DOJ. He spoke of SFO’s perception that the s7 Bribery...

FCA speaks on AI and financial crime

Rob Gruppetta has spoken on FCA’s views on the use of innovation, data and algorithms to help it in its supervision of, and approach to, financial crime prevention. He said that FCA is always open to innovation...