Tag Archives: AML

Treasury Committee starts economic crime inquiry

The Treasury Committee has announced a new inquiry into economic crime.  One part of the inquiry will look at the AML and sanctions regimes in the UK and how firms, individuals and the wider economy are impacted by them and the UK legislative and regulatory framework around them.  The other will look at the economic […]

Treasury publishes AML supervision report

Treasury has published its AML and CTF supervision report for 2015-2017. It notes the two most critical legislative developments during the period as the CFA and MLRs 2017, and notes the strengthened supervision that OPBAS will bring. The report shows many successes, such as non-compliance levels in no more than 5% of entities reviewed, with […]

Treasury updates AML advisory

Treasury has published an updated AML advisory notice reminding firms of their obligation to apply EDD for higher risk jurisdictions.  It has produced a table of relevant jurisdictions, showing which ones it recommends firms consider as: high risk and apply countermeasures and EDD measures in accordance with the risks (North Korea) high risk and apply EDD […]

ESAs publish CDD opinion

The joint committee of the ESAs has published an opinion on the use of innovative solutions towards CDD. The opinion forms part of wider work on the “responsible and effective” use of innovation to enhance AML/CFT controls. The opinion looks at the balance between making controls more efficient against potentially weakening AML/CFT safeguards. The ESAs’ […]

Wolfsberg Group updates on correspondent banking DDQ

The Wolfsberg Group has updated on its work on the correspondent banking due diligence questionnaire, which it updated in October 2017. Following a review and feedback, it has decided only to publish the DDQ more widely when there is an additional set of materials. This will provide better and more focused guidance and set out […]

Treasury confirms establishment of Office for Professional Body AML Supervision

Following the announcement earlier this year of the new Office for Professional Body Anti-Money Laundering Supervision (OPBAS), which will operate within the FCA to oversee the 22 accountancy and legal professional body AML supervisors in the UK, the Treasury has confirmed that the necessary OPBAS regulations have been laid in Parliament and will take effect […]

Government publishes anti-corruption strategy

The Department for International Development and the Home Office have published the UK’s anti-corruption strategy for 2017- 2022. It is predicated on six priorities, which include strengthening the integrity of the UK as an international financial centre and reducing corruption in public procurement and grants. Initiatives will include: greater transparency over ownership and control of […]

FCA speaks on global capital market regulation and AMLTech

Megan Butler has spoken on the fundamental importance of co-ordination between national regulators, particularly in dealing with financial crime and cyber-threats. She looked at the particular benefits and risks that machine learning and algorithmic trading have brought. She stressed the importance of firms reporting material breaches, and the need to let FCA know when they […]

Regulation of crypto-currencies under negotiation

The UK government has published the answer to a written question asked of HM Treasury that reveals that they are in the process of negotiating amendments to the 4th Anti-Money Laundering Directive to bring virtual currency exchange platforms and custodian wallet providers into the AML regulatory framework, thereby bringing them within the scope of relevant […]

ESAs publish draft group AML risk RTS

The ESAs have published draft RTS under MLD4 on how credit and financial institutions should manage their AML/TF risks at group level where their group includes branches or major subsidiaries in third countries that do not permit group wide policies to be used. The RTS include practical steps institutions should take, such as: getting customer […]

Treasury updates AML advisory

On 5 December 2017, HM Treasury published an Advisory Notice on money laundering and terrorist financing controls in higher risk jurisdictions. The Advisory Note follows the Financial Action Task Force (FATF) statements identifying high risk jurisdictions; which was discussed at its plenary meeting held on 3 November 2017. In the Advisory Note, HM Treasury draws […]

Lords put controls in Sanctions Bill

The House of Lords has tabled its list of desired amendments to the Sanctions and AML Bill in advance of its Committee hearing on 21 November.  The Lords is concerned at the amount of power given to Ministers to make secondary legislation and is seeking to impose controls on the ability and rationale for using the powers.

Sanctions and AML bill

We have written a summary of the Sanctions and Anti-Money Laundering Bill as it starts its Parliamentary process.

Commission adds Ethiopia to high risk list

The Commission has made a delegated regulation under MLD4 to add Ethiopia to the list of high risk third countries. It notes that its work to find the most appropriate way of assessing which jurisdictions should be on the list is still underway, but that in the interim it is appropriate to add Ethiopia to […]

More of CFA to take effect

The third commencement order made under the Criminal Finances Act 2017 brings into force from 31 October the provisions enabling certain entities within the regulated sector to share information relating to suspicions, and provide a joint SAR to the NCA under POCA or the Terrorism Act.

ESAs publish wire transfer guidelines for PSPs

The Joint Committee of the ESAs has published guidelines  under the revised Wire Transfer Regulation which was part of the MLD4 package, and that requires payment service providers to establish specific information about the payer and payee in electronic transactions, to combat terrorist financing and money laundering. In an effort to harmonise regulatory expectations across the EU, the guidelines ‘set […]

FCA looks at new technologies and AML

FCA has published the results of a survey it commissioned on emerging technologies, and how they can help firms in their AML prevention work. Firms make significant use of technology, particularly in onboarding, analytics on client screening, and saw great potential in technology helping in transaction monitoring. FCA is keen to help firms use technology […]

FCA publishes consultation on Office for Professional Body Anti-Money Laundering Supervision

FCA has published a consultation on the proposed text for a specialist sourcebook setting out the new Office for Professional Body Anti- Money Laundering Supervision’s (OPBAS) expectations in relation to anti-money laundering supervision. OPBAS will oversee 22 professional body anti money laundering supervisors such as the Law Society / Solicitors Regulation Authority and the Association […]

Treasury confirms new AML super-supervisor

Treasury has confirmed how the new Office for Professional Body Anti-Money Laundering Supervision (OPBAS) will work to help supervisors and law enforcement work together more effectively to tackle money laundering. OPBAS will work to set the standards the 25 AML supervisors under the 2017 MLRs must meet. Treasury has published draft new regulations with a […]

FSB publishes report on action plan to address decline in correspondent banking

By way of update to the G20 leaders, the FSB published a report on its action plan to assess and address the decline in correspondent banking (CB). In November 2015, the FSB published a four point action plan to assess and address the decline in CB.  The four areas of focus were to: examine the dimensions and implication of […]

FCA publishes annual report

FCA’s Annual Report and accounts for 2016/17 sets out its highlights from the past year, and includes specific sectoral reports for competition, enforcement, AML and diversity. FCA regards the year’s highlights as: its asset management market study its PPI work, leading up to proposals for a time limit on claims MIFID 2 and MAR implementation […]

FATF consults on information sharing

FATF is consulting on draft guidance on private sector information sharing. The guidance considers the issues faced by financial institutions when sharing information for AML/CFT purposes both within and outside their corporate groups, and where the information is shared cross-border.  The draft guidance also gives examples of how data protection and privacy authorities have collaborated with […]

Basel Committee updates AML guidance

The Basel Committee has updated its guidelines on sound management of risks relating to money laundering and the financing of terrorism to provide clearer guidance in the chapters on correspondent banking and the general guide to account opening.  The new guidance includes a list of risk indicators that correspondent banks should consider, and are aimed to respond to […]

ESAs consult on group wide AML standards

The ESAs are consulting on RTS for firms in groups straddling the EU and third-countries, where the law of a third country prevents the implementation of group-wide AML/CTF policies in branches or majority-owned subsidiaries.  Consultation closes on 11 July. The ESAs propose that firms must: at least assess the ML/TF risk to their groups and […]

Presidency publishes money laundering crimes general approach

The Presidency has confirmed to the Council the general approach to the Directive on countering money laundering by criminal law.  It has also published the consolidated compromise text of the proposed Directive.  The Presidency now asks the Council to reach a general approach, as the basis for discussions with the European Parliament. The Directive sets out […]

Wolfsberg Group updates PEP FAQs

The Wolfsberg Group has updated its 2008 FAQs on PEPs. The new guidance clearly positions the PEP control framework within the risk based approach, and suggests an appropriate tailored manner of dealing with PEPs. It notes  that although the definition of PEP is becoming wider, it is still appropriate for financial institutions to focus their […]

JMLSG consults on updated guidance parts 2 and 3

JMLSG is consulting, until 26 May, on updates to parts of its guidance within parts 2 and 3.  It has already published a mark up of part 1 of the guidance for comment.  Certain parts of part 2 have not been changed (yet, although the entire part will be updated with new references in due […]

BEIS looks at cutting AML red tape

BEIS has published a summary of views and evidence submitted to the Cutting Red Tape review of the AML and CFT regime. Comments were mainly around: large, often confusing and sometimes duplicated amounts of supervisory guidance, which sometimes fail to make clear what is a legal requirement and what is good practice cause firms to incur […]

Treasury updates AML advisory

Treasury has updated its money laundering advisory notice, following the FATF plenary in late February. North Korea and Iran remain jurisdictions in relation to which firms should apply enhanced due diligence measures, with Afghanistan, Bosnia and Herzegovina, Ethiopia, Iraq, Lao PDR, Syria, Uganda, Vanuatu and Yemen also highlighted as jurisdictions in relation to which enhanced […]

FATF updates after plenary session

FATF has held its plenary meeting. Key issues discussed included: work on improving transparency and beneficial ownership: FATF and the Egmont Group are looking at mechanisms used to hide beneficial ownership with a view to assessing how to overcome the challenges of determining it; impact of work on de-risking; updating of list of jurisdictions with […]

FCA issues largest AML fine

FCA has fined Deutsche Bank £163 million, the largest fine it has imposed for AML failings. It found the bank failed to maintain an adequate AML framework from the beginning of 2012 to the end of 2015, the result of which was that unidentified customers used the bank to transfer around $10 million of finds […]

FCA consults on retail CFD changes

The FCA is proposing stricter rules governing retail CFD products after identifying a number of concerns. It is worried retail customers are opening and trading CFD products that they do not adequately understand. A representative study found that 82% of clients in a representative sample of CFDs lost money on these products. The review also […]

FCA holds financial crime conference

FCA held its annual financial crime conference on 10 November. Among the key points noted by FCA speakers were: Andrew Bailey, in his opening address, highlighting FCA’s “Mission”, and commenting that reliance on prescriptive regulation is not best suited to the evolving risks of financial crime. He also acknowledged the challenges firms face in complying […]

Government responds on AML and CTF

The Government has responded to the responses received to its request for views on its proposed action plan to combat money laundering and terrorist finance. Respondents had agreed the SARS regime needed reform, but had not agreed on the form the changed regime should take. The Government is introducing the Criminal Finances Bill which will, […]

FCA gets tough on AML failings

FCA has fined Sonali Bank £3,250,600 and restricted it from accepting deposits from new customers for 168 days, and also fined the bank’s former MLRO £17,900 and banned him from performing the MLRO or compliance oversight functions. FCA found the bank had serious and systemic weaknesses at almost every level of its AML control and […]

FCA updates on financial crime expectations

FCA has published speeches by Nausicaa Delfas on cyber-security and Megan Butler on FCA’s approach to combatting financial crime. FCA remains committed to a proportionate approach to AML supervision, and noted it subjects only 14 banks and investment banks to its Systematic AML Programme – but these firms account for over 95% of UK retail […]