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...
Category - Financial Crime Prevention
Emma RadmoreJMLSG 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...
Tribunal considers crypto registration refusal
The Upper Tribunal has considered the FCA’s decision not to register Gidiplus Limited under the MLRs and the firm’s application for a suspension application to allow it to continue business pending an appeal...
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...
ECON publishes draft legislation on transfer of funds and cryptoassets
The European Parliament (ECON) has published draft legislation on the proposal for a regulation on information accompanying transfers of funds and certain cryptoassets. The draft sets out the suggested amendments to the...
Emma BondTreasury Committee calls for urgent economic crime measures
The Treasury Committee has published its long awaited report on Economic Crime. It is concerned that the Economic Crime Plan has not been as effective as hoped, and says the need for additional funding can’t just...
Treasury and OFSI update on penalties for sanctions breaches
Treasury and OFSI have published updated guidance on monetary penalties for breaching financial sanctions. The guidance applies from 28 January 2022 and applies to all case where OFSI becomes aware of a potential breach...
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...
2021 CPI shows little change in worldwide corruption levels
Transparency International has published the 2021 Corruption Perceptions Index, which shows a worldwide standstill on corruption levels. It is disappointed that the average score on the index is 43 (with 100 being the...
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...
Scott NodderOFSI and FCDO update on new look sanctions lists
OFSI has published a format guide for the Consolidated List of Designated Persons, while the FCDO has published samples of the new-look list in various formats.
FCDO publishes first UK annual sanctions report
The Foreign, Commonwealth and Development Office has published the UK annual sanctions report for 2021, which is the first report to detail the full extent of the UK’s autonomous sanctions since Brexit. In the...
Parliament publishes report on central bank digital currencies
The Economic Affairs Committee has published its report on the potential for the UK to have a central bank digital currency. It has concluded that there’s no convincing case to have one. Although there could be...
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...
MLR changes change dates and criteria for registrable trusts
Changes to the MLRs: change time limits for the registration of trusts, so that trustees now have until 1 September 2022 to register (extended from the original 10 March to give trustees a year after the TRS enabled...
FCA takes criminal proceedings against directors of unauthorised firm
FCA has commenced criminal proceedings against brothers who were directors of Collateral (UK) Limited, and who: dishonestly represented to investors that the firm was authorised as a P2P lender, knowing it was not;...
ESMA publishes guidelines on delayed disclosure under MAR
ESMA has published its final report into the review of the Market Abuse Regulation (MAR) guidelines on delayed disclosure. This follows its consultation on review of the MAR guidelines on delay in the disclosure of...
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...
Check out our new and improved regulatory timeline
In conjunction with the FIN. blog, we have launched our new and improved horizon scanning tool over on the Womble Bond Dickinson website. Our timeline highlights key regulatory deadlines, legislation and insights...
Lucy HadrillJMLSG 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...
ECB comments on European Parliament’s Banking Union Annual Report
The European Central Bank (ECB) Banking Supervision has published its comments on the input provided by the European Parliament as part of its “Resolution on Banking Union – Annual Report 2022”. The...
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...
EBA publishes cover note for draft RTS on AML/CFT database
The EBA has published a cover note for its submission of the draft regulatory technical standards (RTS) under Article 9a(1) and (3) of Regulation (EU) No 1093/2010, setting up an AML/CFT central database. The database...
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...
JMLSG updates guidance
JMLSG has confirmed the changes it proposed to chapter 5.7 of part 1 of its guidance on monitoring customer activity and published one further clarificatory guideline. It has now submitted the updated wording to...
Government updates on anti-corruption strategy
The Government has highlighted the action taken in the third year of the UK’s current 5 year anti-corruption strategy. During 2020, key initiatives included: reducing the insider threat in high-risk domestic...
FCA fines HSBC for AML transaction monitoring failings
FCA has fined HSBC £63.9m for failings in its AML transaction monitoring process between March 2010 to March 2018. FCA found that the bank did not: until 2014, consider whether the scenarios used to identify ML/TF...
Treasury Committee updates on Nat West correspondence
Following the sentencing in the Nat West MLR prosecution, the Treasury Committee has published further correspondence between it and the FCA. The FCA has now responded to the Committee’s previous correspondence...
Structure of sanctions lists to change
OFSI and the FCDO have announced that the structure and format of the UK sanctions list will change in February 2022. The changes will include: alias strength for UN listings standardised data wherever possible new...
FSB considers “safe remittance corridors”
FSB has published a World Bank/IMF report which proposes a draft methodology for and framework for assessing remittance corridors which could be considered “safe”, in an effort to improve cross-border...
NatWest fined £264.8m for AML failings
The long awaited sentencing following the conviction of NatWest on three offences of failing to comply with the MLRs resulted in the announcement of a fine on the bank of £264,772,619.95. The bank admitted to breaching...
EBA publishes draft guidelines on remote onboarding
EBA is consulting on draft guidelines for the use of remote customer onboarding solutions under MLD4. It aims to set common EU standards on developing and implementing sound, risk-sensitive initial CDD policies and...
UK Finance updates Financial Abuse Code
UK Finance has published an updated version of its Financial Abuse Code of Practice. The Code is a voluntary one, updated to reflect the industry’s understanding of victim-survivor needs. It is designed to align...
Commons Committee seeks clarity on UK/EU AML divergence
The House of Commons (European Scrutiny Committee) has written a letter on the implications for the UK of the proposed changes to EU AML rules. The Committee wants to understand better what the UK’s general...
European Council and Parliament agree crypto-transfer mandate
The Council of the EU has agreed on a mandate to negotiate with the Parliament on a proposal to update existing rules on information accompanying transfers of funds so that they will include certain crypto assets within...
FOS sees rise in “authorised” scam complaints
FOS has seen a 30% increase in complaints about “authorised” scams in the second quarter of the financial year compared to the same period last year. half of the nearly 4,500 complaints were about...
ESMA reports on MAR sanctions
ESMA has published a report on the sanctions imposed by various member states under MAR during 2020. Over the year, €17.5m in fines were imposed for over 500 breaches. The number of administrative actions was...
Government publishes AML supervision report
The Government has published its AML and CTF supervision report for 2019-2020. The report notes the system has been strengthened significantly over recent years. The FATF report on the UK in 2018 had noted significant...
PSR announces next steps to stop APP fraud
The PSR has set out its latest plans to force the financial sector and others involved in the digital ecosystem to prevent APP fraud. It is consulting on plans to: require the UK’s largest banking groups to...
FCA levies further fine for cum-ex trading controls
FCA has fined Sunrise Brokers LLP £600,000 for poor AML systems and controls in relation to cum-ex trading, dividend arbitrage and withholding tax reclaim schemes. It found the firm did not properly identify and...
FCA publishes cum/ex financial crime warning notice
FCA has published an anonymised warning notice it has issued to a firm in relation to financial crime failings in some of its cum/ex trading. The notice relates to activities during 2015, and FCA found that, for...
Treasury Committee publishes tech companies’ responses on financial crime
On 1 October 2021, Rt. Hon. Mel Stride MP wrote to a series of tech giants. The letter posed a series of questions relating to the policies and procedures that the addressees have in place to combat fraud and economic...
Treasury updates AML advisory
Treasury has updated its AML advisory on high risk jurisdictions for money laundering and terrorist financing, following the FATF meeting last week The list continues to require firms to apply counter measures and EDD...
FATF updates virtual asset guidance
FATF has updated its 2019 guidance on a risk based approach for virtual assets and virtual asset service providers. The updates focus on: definitions of key terms; clarification of application of FATF standards to...
SARs reporter engagement survey open to 1 November
The UKFIU and Home Office reporter engagement survey for SARs reporters is open until 1 November, for those involved in financial crime prevention to have their say.
Treasury updates on Economic Crime levy
Treasury has published a policy paper on the introduction of the economic crime levy, which will be introduced in the 1 April 2022 – 31 March 2023 levy year and payable in the following financial year. It had...
Government publishes first proliferation financing NRA
Treasury has produced the first comprehensive National Risk Assessment of proliferation financing, setting out the key risks and vulnerabilities the UK faces. The assessment explains the UK’s role and stance in...
FATF looks at unintended consequences of standards
FATF has published a high level synopsis of its stocktake in its project to look at the unintended consequences of incorrect implementation of its standards. It will now move on to identifying and considering potential...
FCA responds on NatWest
FCA has responded to the enquiry from the Treasury Committee on its actions in relation to its prosecution of NatWest for money laundering. The response says it would be inappropriate to respond in detail while...
FATF holds fifth plenary
The FATF held its fifth plenary between 19 and 21 October 2021. Those present for the meetings included delegates representing the 206 members of the Global Network and observer organisations. The FATF finalised a...
AFME publishes “Anti-Money Laundering Transaction Monitoring in the Markets sector”
The Association for Financial Markets in Europe (AFME) has published a paper entitled, “Anti-Money Laundering Transaction Monitoring in the Markets sector” in collaboration with Ernst & Young. Recognising the key...
FIN. TeamFraud taskforce adds new charters
The Government website hosting all information about the Joint Fraud Taskforce has added the charters for accountancy, retail banking and telecommunications. The retail banking charter quantifies the key risks (APP...
FCA publishes 2020/21 Perimeter Report
The FCA has published its latest Perimeter Report, in which it calls for greater consumer protection and legislative change to address concerns beyond its remit. Highlights include recommendations that: duties on...
Treasury Committee seeks further information on NatWest action
The Treasury Committee has written to FCA asking for further information on FCA’s prosecution of NatWest for money laundering. It asks why it took 5 years to reach conclusion, and seeks to understand the...
FCA fines Credit Suisse £147m for financial crime DD failings
FCA has fined Credit Suisse (Credit Suisse International, Credit Suisse Securities (Europe) Ltd and Credit Suisse AG) £147,190,276 and agreed with it that it will forgive $200m of debt owed by the Republic of Mozambique...
European Commission adopts work programme for 2022
The EU Commission has adopted its 2022 work programme which sets out the next steps in its agenda towards a greener, fairer, more digital and more resilient Europe. The programme contains 42 new policy initiatives...
FSB wants better convergence in cyber incident reporting
FSB has examined approaches to cyber incident reporting and found fragmentation across sectors and jurisdictions in terms of what should be reported for a cyber incident, how impact and severity is measured, reporting...
ICAEW responds on AML consultations
ICAEW has published its response to the Treasury’s call for evidence on the UK AML/CFT supervisory regime and on targeted amendments to the MLRs. In its response on the MLR amendments, key observations include:...
SFO gets more Petrofac bribery convictions
SFO 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...
Nat West pleads guilty to MLR offences
Nat West has entered guilty pleas to criminal charges brought by FCA that it had failed to comply with certain requirements under the MLR 2007 between various dates from November 2012 to June 2016. The failings related...
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...
UK Finance suggests public official definition for ABC
UK Finance is concerned that the fight against corruption, especially bribery of public officials, is hindered by high-level international legal definitions and varied national legislation and interpretation. It sees...
FCA 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...
EDPS 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 Frost
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