Emma RadmoreHMT has published a MoU between the Office of Financial Sanctions Implementation (OFSI) and the United States Office of Foreign Assets Control (OFAC), to facilitate the exchange of information between the organisations...
Category - Financial Crime Prevention
Laura WilesFCA objects to Change in Control due to notification failures
The FCA has issued a final notice objecting to the proposed acquisition of Olampicaran Limited by Mr Ahmed, who had failed to notify and seek approval from the FCA. Olampicaran was a small payments firm providing money...
UK designates extreme right wing group under sanctions legislation
The Government has designated “Blood and Honour” (and any aliases it uses) under the sanctions regime, imposing a full asset freeze on it with effect from 8 January. It says it has reasonable grounds to...
FCA executes search warrants in relation to unauthorised businesses
The FCA, in conjunction with the West Midlands Police, the Eastern Region Special Operations Unit and Police Scotland, has executed search warrants in two investigations involving unauthorised debt and claims management...
FCA issues Supervisory Notice to Hydrogard Legal Services
The FCA has published a First Supervisory Notice against Hydrogard Legal Services Limited, a firm with claims management permissions, requiring it to immediate cease carrying on all regulated activities other than with...
Regulators publish cyber findings for 2024
The BoE, PRA and FCA have published their latest annual CBEST thematic report. The report assesses the cyber resilience of key financial institutions through security testing performed in ‘live’ corporate...
FMSB publishes final client onboarding standard
The Financial Markets Standards Board (FMSB) has published its final Standard for Client Onboarding: Documentation and Processes. The Standard has been drafted to allow onboarding firms to continue to fully apply the...
FCA charges former WealthTek partner
The FCA has brought criminal charges against John Dance, the principal partner at WealthTek LLP, in relation to 9 criminal offences, including multiple counts of fraud and money laundering. WealthTek, then known as...
FCA updates Financial Crime Guide
Following a consultation, the FCA has made changes to its Financial Crime Guide. The changes cover the following areas: The FCA conducted extensive assessments of firms’ sanctions systems and controls following...
FOS notes huge increase in complaints
The latest figures from the FOS show complaints have increased by over 50%, with record increases in complaints about frauds and scams, current accounts and credit cards. The FOS also noted in particular an increasing...
FCA fines former Wizz Air executive for closed period trades and disclosure failures
The FCA has fined the former chief supply chain officer at Wizz Air Holdings plc £123,500 for trading company shares when he was not permitted to, and failing to disclose those trades. Between April 2019 and November...
FCA publishes research on crypto ownership
The latest FCA research on consumer attitudes and behaviours toward cryptoassets, 12% of UK adults now own crypto, up from 10% in previous findings. Other key findings included: Awareness of crypto rose from 91 to 93%...
FCA fines Macquarie Bank £13m for fictitious trades control failings
The FCA has fined Macquarie Bank Limited – London Branch £13m for serious control failures that allowed an employee to record over 400 fictitious trades. From June 2020 to February 2022, Travis Klein – based...
FCA updates payments and e-money Approach Document on “reasonable grounds” for delaying payment
Following a consultation, the FCA has updated its payment services and e-money Approach Document to support amendments to the PSRs made in the Payment Services (Amendment) Regulations 2024. The provisions came into...
Tribunal disagrees with FCA on fine amount
The FCA had found Arian Financial LLP had breached Principles 2 and 3 in respect of failings in its financial crime prevention systems and controls in relation to business introduced by the now infamous “Solo...
Treasury updates money laundering advisory
HM Treasury has updated its money laundering advisory notice in relation to high risk third countries. The update follows the FATF meeting on 25 October and reflects the list agreed (and which took effect) then.
FCA updates market cleanliness measures
The FCA has revised its methodology for its market cleanliness statistic, to make it more accurate. Going forwards it will be able to detect abnormal price movements that happen on the same day as an announcement, use a...
FCA reacts to Mansion House speech
The FCA has reacted to several announcements from the Mansion House speech. It has reiterated that it is committed to supporting growth and says it has fully embraced its secondary international competitiveness and...
Mansion House speech heralds 5 priority growth areas
The Chancellor’s first Mansion House speech stressed the importance of the financial services industry to the UK and highlighted 5 priority growth opportunities on which the Government will focus its strategy:...
FCA fines Metro Bank £16m for financial crime control failings
The FCA has fined Metro Bank PLC £16,675,200 for failures relating to the systems and controls it had in place to monitor transactions for money laundering risks. The period concerned spanned from June 2016 to December...
PSR writes to tech firms on fraud enabler data
The PSR has written to online, social media and tech firms, telling them of its upcoming report on firms which are most commonly reported as enabling contact between fraudsters and victims. The letter to the relevant...
The Economic Crime and Corporate Transparency Act: Companies House reveals implementation timetable for upcoming changes
Companies House published a policy paper on 16 October 2024 setting out an indicative timetable for the changes at Companies House which are still to be introduced by the Economic Crime and Corporate Transparency Act...
Suzanne GadoFATF publishes money laundering national risk assessment guidance
The FATF has published guidance on money laundering national risk assessments (NRAs). The guidance aims to support countries in conducting an NRA focussed on evaluating money laundering vulnerabilities. Key sections...
FCA convicts individuals for £1.5m investment fraud
The FCA has secured convictions against two individuals in relation to a £1.5m investment fraud. Between February 2017 and June 2019, Raymondip Bedi and Patrick Mavanga defrauded at least 65 investors by cold calling...
Failure to prevent fraud offence to take effect next September
The provisions of the Economic Crime and Corporate Transparency Act 2023 relating to the new offence of failure to prevent fraud that will apply to large companies will take effect from 1 September 2025. Off the back of...
OFSI updates sanctions FAQs
OFSI has updated its FAQs on financial sanctions. The main newly featured question addresses whether overseas subsidiaries of UK entities are expected to comply with UK sanctions – the answer being that the...
FCA updates crypto registration stats
The FCA’s monthly update of its statistics on applications for registration under the MLRs for cryptoasset firms shows that in the past month it has received 1 application, rejected 1, and 1 has been withdrawn. ...
CoP takes wider effect
From 31 October, the expanded roll out of Confirmation of Payee now means that 99% of all transactions made through Faster Payments and CHAPs are within scope, as the PSR’s SD17 took effect. The initial grouping...
FCA publishes lessons for operational resilience post-CrowdStrike
The FCA has published its observations and key lessons from how firms responded to the July 2024 CrowdStrike outage, and their preparedness to respond to future incidents. The FCA noted that it has seen a continuing...
SFO and CoLP work towards easier fraud reporting
The SFO and City of London police have advised that, with effect from 28 October, all fraud referrals that are not from companies or whistleblowers should be made to Action Fraud either online or via the call centre...
FATF holds October plenary
Key highlights from FATF’s October plenary meeting are: approval of the last 2 reports of the fourth assessment cycle; removal of Senegal from the high-risk monitoring list and addition of Algeria, Angola, Cote...
FCA publishes Q3 fin proms data
The FCA has published its financial promotions data for Q3 2024 on its actions against firms breaching financial promotion rules, and referrals and investigations into unregulated activity. During the period: 10,593...
FCA targets illegal finfluencers
The FCA is interviewing 20 “finfluencers” under caution in a targeted action against social media account holders which may be promoting financial services products illegally. It has also issued 38 alerts...
OFSI updates guidance
OFSI has updated its guidance on counter-terrorism sanctions. The guidance reflects recent updates to secondary legislation made under SAMLA (most recently the June update in relation to the director disqualification...
FATF updates grey list criteria
The FATF has updated the criteria for its “grey list“, which sets out jurisdictions under increased monitoring who are working with the FATF to address with agreed timeframes the strategic deficiencies in...
G7 Cyber Expert Group publishes guidance on combatting quantum computing risks in the financial sector
The G7 Cyber Expert Group (CEG) has published a statement highlighting potential cybersecurity risks arising from developments in quantum computing, and how these may be addressed by the financial sector. The CEG...
Payment Delay Regulations to take effect on 30 October
Treasury has made the Payment Services (Amendment) Regulations 2024. They will take effect on 30 October and amend regulation 86 of the PSRs that requires PSPs to execute payment transactions within set timeframes. The...
Market Watch focuses on SYSC 6 and UBOs
The latest edition of Market Watch looks at how firms can ensure compliance with SYSC 6.1.1R when dealing for overseas clients who operate aggregated accounts that provide no visibility of the UBOs. Firms will often...
FCA updates on crypto applications
During the month to 1 October 2024, the FCA received 4 new applications from firms seeking to register as crypto firms under the MLRs, making a total of 364 since January 2020. It registered one firm during the period...
FCA sets clear expectations on APP fraud reimbursement
The FCA has wasted no time. On the day the new reimbursement requirement for APP frauds using FPS or CHAPS took effect (7 October), it has written two Dear CEO letters, one to banks and building societies and one to...
Regulators herald APP scam reimbursement requirement
The PSR and other regulators have welcomed the effective date of the APP scam reimbursement requirement, applicable to payments made over FPS and CHAPS between UK bank accounts. The PSR stressed that: over 99% of claims...
ECCTA guidance on AML information sharing
The Department for Business and Trade has published guidance on the information sharing measures under the ECCTA 2023 for use by AML regulated firms. The guidance aims to help firms ensure that when they share...
Government finalises payment delay regulations
The final draft of the Payment Services (Amendment) Regulations 2024 confirms that PSPs can delay the execution of certain payment orders where the PSP establishes reasonable grounds to suspect the order has been made...
FCA fines Starling Bank £29m for financial crime control failings
The FCA has fined Starling Bank Limited approximately £29m for financial crime failings related to its financial sanctions screening process, and for repeatedly breaching a requirement not to open accounts for high-risk...
OPBAS calls for MLR supervision improvement
OPBAS says while most of the Professional Body Supervisors are complying with money laundering regulation, they are not consistently and effectively supervising their regulated communities. It says none of them are...
PSR confirms APP scam or civil dispute guidance
The PSR has confirmed its final guidance to help firms distinguish whether claims they receive from customers who have lost money are APP scams or more likely to be civil disputes. The guidance is aimed at helping firms...
UK Finance and LSB respond on proposed reduction to APP reimbursement cap
UK Finance and the LSB have responded to the PSR’s urgent consultation on lowering the maximum level of reimbursement for Faster Payments APP scams to £85,000, a significant reduction from the previously agreed...
FCA speaks on fraud prevention
Andrea Bowe of the FCA has spoken on what the FCA is doing to help reduce financial crime and its key role in the implementation of the Government’s Economic Crime Plan. She spoke of the equal importance of...
FCA brings charges for illegal crypto ATM network
The FCA has charged Olumide Osunkoya with unlawfully running multiple crypto ATMs without registration under the MLRs. The ATMs in question processed £2.6m in crypto transactions during a period of just under 2 years...
FCA consults on “reasonable grounds” for delaying payments
The FCA is consulting on updating its guidance in its “approach” document for payment services and e-money firms to support proposed amendments to the PSRs that will allow PSPs to delay making payment...
PSR confirms CHAPS APP reimbursement direction
Following consultation, the PSR has published a tracked and final version Specific Direction 21 which now applies to all PSPs participating in CHAPS that provide relevant accounts – which are defined as all...
FCA publishes Annual Report
The FCA Annual Report and Accounts shows how the FCA has improved its operating statistics for authorisations over the past year. It now meets its statutory deadlines for determining applications in 98% of cases. Other...
FCA speaks on approach to tackling financial crime
Sarah Pritchard has spoken on the importance of working together and sharing intelligence as a key part of tackling financial crime. She spoke of using a targeted approach to spot outliers and issues. She discussed how...
PSR proposes reduction in APP reimbursement max
The PSR is consulting urgently on a proposal to lower the maximum level of reimbursement for Faster Payments APP scam claims to £85,000. This is a significant reduction, bringing it down from the previously agreed...
FOS highlights record fraud and scam complaints
We previously reported on the last quarter’s record complaints figures to the FOS. It has followed up this data with details of fraud and scam complaints, which are at their highest ever quarterly level. In the...
FCA releases latest skilled persons stats
In the quarter to end March 2024, the FCA commissioned 27 skilled persons reports. 10 related to retail investments, 7 to wholesale financial markets and 5 to retail banking and payments. 12 related to controls and risk...
NCA publishes new SARs reporter booklet
The NCA has published a new version of its SARs Reporter Booklet. The latest version focuses on DAMLs that were refused for further investigation and includes case studies including a request for a DAML to return funds...
Companies House plans ECCTA actions
The latest Companies House business plan includes details of its plans relating to ECCTA compliance over the next year. These include: prioritising removing inaccurate information on registers, including querying and...
UK Finance responds on MLRs
The UK Finance response to the Treasury consultation on improving the effectiveness of the MLRs notes that there are some parts of the existing regulations that are unhelpful in that they: drive tick box compliance; or...
New sanctions list search function
The FCDO has launched a new search function which allows users to more easily find information relating to designated persons on the UK sanctions list. The search function does not remove an individual or entity’s...
PSR publishes APP scams performance report
The PSR has published the APP scams performance report for 2023. Highlights from the report show: over 250,000 reports were made in 2023, with scams totalling over £340m; reimbursement rates have increased while fraud...
PSR publishes APP scams reimbursement information sheet
The PSR has published an information sheet to support firms’ compliance with Specific Direction 20 – the requirement for sending PSPs to inform consumers of their rights under the reimbursement requirement...
Harry WellsNCA and banks launch data sharing project
The NCA has announced a partnership with 7 banks under which the banks will provide the NCA with account data that could suggest criminality. The banks and investigators will analyse the data to help inform both the...
Court clarifies extent of POCA “adequate consideration” defence
The Court of Appeal has overturned a High Court ruling on the ongoing effects of using the “adequate consideration” defence when acquiring the proceeds of crime. The World Uyghur Congress had challenged a...
FCA fines E-money firm £3.5m
The FCA has fined CB Payments Limited, an EMI which is part of the Coinbase Group, £3.5m for repeated breach of a requirement restricting it from offering services to high risk customers. The firm does not itself...
Court considers “reasonable cause to suspect” for sanctions purposes
The High Court has considered what would be “reasonable cause” to suspect in the context of funds or economic resources being owned or controlled by a designated person for the purposes of the financial...
PSR consults on draft guidance on identifying APP scams
The PSR is consulting on draft guidance on distinguishing between APP scams and civil disputes, after engagement with industry. The draft guidance aims to support Payment Service Providers (PSPs) with identifying...
FCA consults on updates to PEPs guidance
Following recent changes to the MLRs and its PEP review, the FCA is consulting on changes to its guidance for firms on applying a proportionate and risk-based approach to UK PEPs, their relatives and close associates...
FMLC asks HM Treasury to clarify MLRs 2017
The Financial Markets Law Committee (FMLC) has written to HM Treasury asking it to clarify areas of legal uncertainty relating to the MLRs 2017. The FMLC considers that the continued reference to the EU CRD Annex 1...
PSR confirms APP reimbursement requirements
The PSR has published its policy statement confirming the requirements for the mandatory APP scams reimbursement policy which takes effect on 7 October 2024. The PSR consulted in April on proposed reporting requirements...
OFSI updates Human Rights sanctions guidance
OFSI has updated its guidance on the Global Human Rights Sanctions Regulations to include guidance on how designated persons are subject to the director disqualification regime.
FCA updates crypto application stats
The FCA has updated its statistics on crypto applications. In the month to 1 July, it received 2 applications, determined none, but one was withdrawn.
FATF adds 2 countries to high risk list
Outputs from the last FATF plenary meeting to take place under Singapore’s presidency included: adding Monaco and Venezuela to its list of jurisdictions subject to increased monitoring and removing Jamaica and...
EBA welcomes new EU AML/CTF framework
The EBA has published a statement setting out its AML/CTF priorities for 2024/25. It will focus on: a methodology for selecting financial institutions for direct EU-level AML/CTF supervision; a common risk assessment...
Complaints Commissioner criticises FCA’s response to MLRs complaint
The Complaints Commissioner has criticised the FCA for refusing to review a complaint made about its legal obligations under the MLRs. The complainant had written to the FCA asserting that the regulator had been grossly...
Wolfsberg Group responds on MLR review
The Wolfsberg Group has responded to the Treasury consultation on improving the effectiveness of the MLRs. Among the key points in its detailed submission are: that an effective AML/CTF framework includes discontinuing...
FCA delays publication of PEP treatment review
The FCA had been due to publish the findings from its review of the treatment of PEPs by regulated firms at the end of June, as required by FSMA 2023. However, it does not think it appropriate to do so in the run up to...
Individual takes action against Revolut for APP fraud
Mr Larsson brought claims against Revolut, following payments it accepted that resulted from an APP fraud on Mr Larsson. Mr Larsson was a Revolut customer, but the payments in question were made by him from his account...
AFME proposes more clarification in MLRs
The response of the Association for Financial Markets in Europe to the Treasury consultation on improving the effectiveness of the MLRs. AFME draws out as particularly important: the need for greater clarity on what is...
EU adopts new AML package
The Council of the EU has adopted the new AML package, which will comprise a new Regulation which takes in and updates all AML requirements on the private sector, a new Directive which sets out both how national FIUs...
Pay.UK delighted with Fraud Detection Pilot
Pay.UK’s new fraud detection pilot has shown an average increase in detection of 40%, with over £112m of fraud detected. The pilot was confirmed a year ago and ran for 3 months. Pay.UK says the new overlay service...
PSR writes to FPS participants on APP reimbursement
The PSR has written to Faster Payments System participants to set out areas of focus for implementing the mandatory APP scams reimbursement policy. In order to ensure effective and timely implementation by 7 October...
July 4 Election: effect on current Bills?
A general election has been called for 4 July 2024. Parliament (including the House of Lords) will be dissolved on 30 May 2024. We are now therefore in the ‘wash-up’ period which will last for only 2 days...
UK Finance annual fraud report 2024
UK Finance has published its annual fraud report for 2024 which sets out the amount of payment fraud and scams UK Finance members reported in 2023. Highlights include: criminals stole £1.17 billion through unauthorised...
PSR updates on preventing APP fraud
Chris Hemsley has written to Dame Harriett Baldwin MP (Chair of the House of Commons Treasury Committee) on the PSR’s progress on implementing measures to better protect consumers from APP scams. From 7 October...
Sanctions changes take effect
Two sets of amendments to the sanctions regime have been published, one of which took effect on 16 May and the other taking effect from 5 June. They make changes to several sets of regulations in respect of various...
FCA charges 8 finfluencers with making unlawful promotions
The FCA has brought charges against 7 “finfluencers” and two other individuals in relation to an unauthorised FX trading scheme. It alleges that Emmanuel Nwanze and another used Instagram to provide advice...
FCA updates crypto registration stats
The FCA has updated its table on success rates of applications for registration under the MLRs for cryptoasset business. As at 1 May 2024, it had received 345 applications in total with 1 in the last month. During the...
PSR consults on CHAPS APP scam reimbursement
The PSR is consulting on a proposed direction to require banks and payment firms participating in CHAPS to reimburse customers who have been the victim of APP scams. The direction will support the BoE’s...
PSR consults on cycle 2 APP scam publication guidance
The PSR is consulting on its draft guidance for PSPs for publishing APP scams data for cycle 2 (the calendar year 2023). The requirement to publish the data comes under Specific Direction 18 and applies to 14 PSP groups...
A bank “retrieval duty”?
See our article on the recent CCP Graduate School Ltd v Nat West case, where the court looked at the issue of receiving banks’ liability.
AML supervision review looks forward to change
Treasury has published its 2022-23 review of AML supervision. The report contains the normal review of what each supervisor has done, but mainly looks forward to the upcoming changes to both the supervisory structure...
OFSI updates enforcement guidance
OFSI has updated its guidance on Enforcement and Monetary penalties. The main update is to say that OFSI will now always apply the most recent iteration of its guidance to cases it is looking at. It has also taken the...
OFSI publishes FAQs
OFSI has published its first set of FAQs on financial sanctions. It hopes they will be accessible and helpful to businesses. It will release new FAQs on an “as-needed” basis and does not plan generally to...
JMLSG consults on wholesale market guidance update
The JMLSG is consulting on changes to chapter 18 in Part II of its guidance, for wholesale markets. The changes generally update references, and: clarify that as market abuse is a predicate offence, settlement of...
European Parliament adopts new AML package
The European Parliament has adopted the new AML package, which, among other things, will: limit cash payments to €10,000; create a new EU-wide agency to directly supervise the highest risk businesses; allow those with a...
FCA consults on Financial Crime Guide updates
The FCA is consulting on several proposed changes to its Financial Crime Guide. It is suggesting change to: the guide generally to add references to crypto assets and the Consumer Duty; the sanctions part to reflect...
BoE/PRA update on AI approach
The BoE and the PRA have responded to requests for an update on the strategic approach they are taking to AI. The response notes that AI and Machine Learning is already in quite wide use in many parts of the financial...
APPG publishes Economic Crime Manifesto II
The All Party Parliamentary Groups for Anti-Corruption and Responsible Tax and for Fair Business Banking have published a manifesto looking at the scale of corruption and calling for significant greater transparency to...
PSR consults on APP reimbursement compliance and monitoring
The PSR has published a consultation paper seeking views on proposed reporting requirements for PSPs that are in scope of the new reimbursement requirement, so that the PSPs will report data to allow the regulator...
FCA updates perimeter report
The FCA has updated its Perimeter Report on its website. It was last updated in March 2023. Among the issues discussed are: FCA’s general approach to the perimeter; when it will take action against unauthorised...
NCA releases latest SARs report
The latest NCA SARs annual statistical report shows a decrease in the total number of SARs compared to the previous year, which is mainly because of fewer SARs being made by high street banks, although banks still...
Wolfsberg Group publishes financial crime audit principles
The Wolfsberg Group has published a set of principles for auditing a financial crime risk management programme under its three factors of: complying with financial crime laws and regulations establishing a reasonable...