FIN.

Category - Financial Crime Prevention

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...

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...

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...

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...

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...

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 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...

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...

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...

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...

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...

NCA updates SAR portal

The NCA has updated its website in respect of: overview of the SAR Portal: this includes an overview of the whole process and of the type of questions that the system will ask when a SAR is being submitted; registering...

Wolfsberg group updates CTF statement

The Wolfsberg Group has updated its 2002 statement on the Suppression of Financing of Terrorism. The updated statement reflects changes in laws and also public-private cooperation in the fight against terrorist...

FCA publishes Business Plan 2024/2025

The FCA’s 2024/25 Business Plan highlights the work carried out to date, and what it plans to do in the coming year, the final year of its 3 year strategy. The strategy continues a focus on delivery of the...

FCA confirms FIN074 return requirement

The FCA has confirmed that it sends firms the FIN074 return so that it can work out whether the firm needs to pay the Economic Crime Levy – not all firms that receive the return will need to do so. The FCA also...

FATF updates beneficial ownership guidance

FATF has updated its risk based guidance for its Recommendation 25 on Beneficial Ownership and transparency of legal arrangements. The guidance focuses on understanding trusts, and the risks associated with them. It...

Treasury consults on MLR improvements

The Treasury is consulting on how to make the Money Laundering Regulations more effective. The paper follows previous consultations on changes to the MLRs and picks up on comments about how many of the provisions of the...

FCA updates on skilled persons reports

The latest statistics for skilled persons reports FCA commissioned in Q3 2023/24 show: 24 reports in total 7 related to the retail banking and payments sector, 6 to retail investments, 5 to wholesale markets and 4 to...

Government reviews SAMLA

The FCDO has carried out a preliminary post-legislative assessment of SAMLA 2018. The analysis looks at the background to the legislation and sets out the powers it contains. It is divided into sections, focusing mainly...

FCA warns Annex I firms on AML issues

FCA has written to CEOs of the 1,000 Annex I firms it supervises (firms which do not need FSMA authorisation but which carry on activities subject to the MLRs for which FCA is the appropriate supervisor). It has carried...

FMSB publishes onboarding standard

The Financial Markets Standards Board has published a draft standard which would apply to firms onboarding clients or reviewing client files for UK AML and KYC compliance. The standard would apply to FMSB members in all...

SFO speaks on faster case resolution

Nick Ephgrave, SFO Director, has spoken on SFO’s history and his plans for the future.  He wants to solve cases more quickly, and spoke of a number of tactics he plans to use. These include a more rigorous and...

OFSI updates guidance

OFSI has updated its guidance on financial sanctions and licensing to include detail on licensing principles and framework in the general guidance section of its main guidance, and to move its travel guidance to a...

High risk third country list update

Treasury has updated its website to reflect the list of high risk third countries for MLR purposes. The list now comes directly from FATF. Following FATF’s plenary meeting on 23 February, it has removed Barbados...

OFSI publishes ransomware guidance

OFSI has published financial sanctions guidance for ransomware. The guidance explains that the government uses the financial sanctions regime to target the ransomware threat actors who cause the highest harm to the UK...

Market Watch focuses on organised crime

The latest edition of FCA’s Market Watch looks at actions firms can take to mitigate the risks of being used by Organised Crime Groups. It says suspicious trading by members of OCGs forms a large proportion of the...

OFSI updates guidance

2024 will see OFSI move to digital guidance which it says will enhance accessibility and user experience. It will not be making fundamental content changes as it starts to make the changes. As a start, it has updated...

Home Office responds on SARs regime review

The Home Office has published its response to the 2019 Law Commission report and recommendations on the SARs regime. The report had made 19 recommendations, of which the Home Office accepts 13. The uncontended...

Tribunal backs FCA on EMI

The Upper Tribunal has agreed not to suspend the restrictions FCA placed on EMI Nvayo Limited last year.  The wide restrictions stop the firm carrying on EMR business or disposing of assets. FCA welcomed the decision...

FCA publishes blockchain research

FCA has published a research note entitled ‘Review of Maximal Extractable value (MEV) and Blockchain Oracles’ in collaboration with Futuresight Business Intelligence Ltd, the Financial Industry Regulatory...

PSR heralds priorities for 2024

Chris Helmsley has looked ahead to a busy year ahead for payments. He spoke on: implementation of the mandatory APP reimbursement rules which will be a real step-change in the way the industry approaches fraud...

ML High Risk countries re-defined

From 22 January, a change to the MLRs means that Treasury will no longer periodically update Schedule 3ZA to the MLRs.  The definition of “High risk third country” is now a country named on the FATF lists of...

OFSI updates guidance

OFSI has updated several pieces of guidance.  There are December 2023 versions of: general guidance on financial sanctions; guidance on enforcement and financial penalties; and guidance specific to the Russian sanctions...

FCA reflects on 2023

Nikhil Rathi has reflected on some of FCA’s key achievements and milestones from 2023. He highlighted: the implementation of the Consumer Duty and changes firms have already made as a result; FCA telling GAP...

Regulators publish 2023 cyber findings

The BoE, PRA and FCA have published their latest annual CBEST thematic report. The report, which has been published in full for the first time, contains cyber resilience good practice, lessons learned and insight...

MLR changes address domestic PEPs

Changes to the MLRs will take effect from 10 January 2024, which meet the requirements of s77 FSMA 2023 and provide that the starting point for EDD assessments where a customer is a domestic PEP or is a family member or...

New Russian sanctions take effect

The Government has introduced a new set of financial and trade sanctions against Russia. Taking effect from 14 December, the package includes broadening the existing sanctions in respect of correspondent banking and...

OFSI publishes Annual Review

OFSI has published its annual review for 2022-23. The review looks at how OFSI has expanded to meet its increased workload and how it has transformed its practices to deliver more effective implementation and...

MoU between FCA and OFSI

On 1 December 2023,FCA published a Memorandum of Understanding (MoU) (dated 21 November 2023) between it and OFSI. The MoU sets out the collaboration and information exchange between FCA and OFSI. It replaces the...

OFSI defends licence refusal

The High Court has supported OFSI’s decision to refuse to grant licence requests relating to a Designated Person. Mikhail Fridman had filed the first claim under s38(2) of SAMLA (and also the first challenge to...

FCDO and OFSI clarify “control”

FCDO and OFSI have given guidance on their approach to what “ownership and control” means when a public official is designated.  The guidance confirms that any entity which is owned or controlled by a...

ECCTA starts to take effect

The first commencement order under the Economic Crime and Corporate Transparency Act 2023 brings into force on 15 January 2024 several parts of the Act, including the provisions on: the change to POCA to create...

NCA issues gold sanctions abuse warning

NCA has warned financial institutions to be aware of deliberate attempts to breach UK sanctions and launder sanctioned gold and hide it in supply chains. Several individuals and entities operating in and supporting...

Market Watch updates on market soundings

The latest edition of Market Watch updates FCA’s views on market soundings, following on from previous editions. FCA says it has recently found cases where recipients of soundings have traded between receiving the...

FATF holds plenary

FATF has held its latest plenary session. It agreed several reports, including on crowdfunding for terrorist financing, and revisions to Recommendation 8 to clarify measures applying to NPOs. It will also be consulting...

PSR publishes APP fraud data guide

PSR has published guidance for PSPs on the content of the data on APP fraud that PSPs are now required to provide. The guide also looks at the required format for the data and the timescales for its provision.