Emma RadmoreA motion to be moved when the Lords next considers the Economic Crime and Corporate Transparency Bill will propose a further compromise with the Commons by exempting from the offence newly defined “small”...
Category - Financial Crime Prevention
JMLSG travel rule guidance approved
Treasury has approved the addition to the JMLSG Guidance that provides guidance on implementation of the travel rule for crypto business. An updated Sector 22 and its annex are now approved.
FCA reports on bank account access and closures
FCA has published its initial findings in its review of bank account access and closures. It has based its conclusions on information provided for the year to June 2023 by 34 firms. The key conclusion is that no firm...
Lords urges Government to change stance on FTP
The “failure to prevent fraud” provisions in the Economic Crime and Corporate Transparency Bill continue through parliamentary “ping pong”. On 11 September, the Lords again rejected the...
OFSI publishes frozen assets reporting requirements for 2023
Treasury has published a notice requiring firms to report any new, or changes in previously held, frozen assets, to OFSI by 10 November 2023.
SFO speaks on new powers
Michelle Crotty, Chief Capability Officer at the SFO, has spoken on its successes since Lisa Osofsky became its Director and looking ahead to Nick Ephgrave’s upcoming tenure. She also noted the increased powers...
Economic Crime and Corporate Transparency Bill back in Lords
As expected, when the Economic Crime and Corporate Transparency Bill was discussed in the Commons on 4 September, it disagreed with some of the Lords’ amendments, so the Bill has been returned to the Lords for...
FCA speaks on financial crime controls
Sarah Pritchard has spoken on the importance of firms calibrating their financial crime fighting systems to the right level. She stressed the importance of firms understanding who their clients are, identifying the...
FCA publishes Russian sanctions controls results
FCA has published the key findings, and examples of good and poor practice, following its assessment of the sanctions systems and controls firms have in place specifically in relation to the increased sanctions...
FCA launches PEP review
FCA has published a paper setting out the issues it will consider as part of its review on the treatment of PEPs under s78 FSMA 2023. FCA notes that it does not have the power to change the law relating to the PEPs...
OFSI uses disclosure power for first time
OFSI has used its disclosure enforcement power for the first time to highlight a breach of the Russia (Sanctions) EU Exit Regulations 2019. This power allows OFSI to publish notices of breaches where it has decided not...
Lucy HadrillJMLSG publishes crypto transfer guidance
JMLSG has published its final revisions to Section 22 (Cryptoasset providers and custodian wallet providers) in Part II of its AML/CTF guidance. The update includes a new Annex 1 on crypto transfers which relates to the...
FCA sets out expectations for travel rule compliance
FCA has set out its expectations for UK cryptoasset businesses subject to the so-called ‘travel rule’, which will require them to collect, verify and share information about cryptoasset transfers from 1...
Laura WilesPSR consults on APP fraud reimbursement limit and consumer standard of caution
PSR has launched two consultations relating to the implementation of its new APP fraud reimbursement requirements, which mean that the vast majority of victims will be reimbursed within 5 days of the fraud being...
FCA invites PEPs to share their experiences with financial services firms
FCA is currently reviewing how financial services firms have applied the PEPs regime and whether changes to its guidance is required. It has now written a letter to PEPs directly inviting them to share their...
FCA and COLC to hold APP data launch briefing
FCA and the City of London Corporation will hold an event on 27 September to launch FCA’s APP fraud synthetic dataset. At the event, FCA will introduce the dataset and share details of the engagement behind it...
UK Finance updates FTR guidance
UK Finance has published a “how to” interpretative guide to the Funds Transfer Regulation. The FTR was one of the pieces of legislation onshored after Brexit, and UK Finance had previously produced guidance...
FCA warns consumers on loan fee fraud
FCA has issued a consumer warning to help customers avoid loan fee fraud as they look to cover the costs of summer spending. This type of fraud, which involves customers paying for a loan they never receive, typically...
Government consults on financial product cold call ban
The Government is consulting on how to ban cold calls offering any financial products. It says that once the ban is in force, it will be clear to anyone receiving a call for a financial product that the call is a scam...
JMLSG finalises change to impersonation fraud mitigation
JMLSG has submitted for ministerial approval a change to Paragraph 5.3.89 in Part I of its guidance. The change relates to additional measures firms should consider taking when identity is verified electronically, copy...
HMRC updates MLR registration guidance
HMRC has updated its guidance for firms needing to make changes to their money laundering registrations or deregistering their business. The guidance summarises what changes should be reported to HMRC and notes that any...
JMLSG consults on travel rule
JMLSG is consulting on changes to its guidance in respect of the travel rule for cryptoasset transfers. The changes will add a new Annex 1 to Chapter 22 in Part 2 and will reflect the requirements in Part 7A of the MLRs...
OFSI updates sanctions guidance
The latest update to OFSI’s guidance on complying with the financial sanctions regime focuses on updates to the licensing process.
PRA fines Credit Suisse record £87m for risk management and governance failures
PRA has imposed a record fine of £87m on Credit Suisse for serious risk management and governance failures between 1 January 2020 and 31 March 2021 in connection with its exposures to Archegos Capital Management. This...
FCA fines Bastion Capital London for financial crime control failings
FCA has fined Bastion Capital London Limited (in liquidation) £2,452,700 for serious financial crime control failings in relation to cum-ex trading. The firm had failed to manage the risk of being used to facilitate...
Supreme Court rules in favour of Barclays in APP fraud case
The Supreme Court has handed down its decision in the case of Philipp v Barclays Bank UK PLC [2023] UKSC 25. Barclays had appealed a decision from the Court of Appeal that it owed the customer a contractual duty not to...
Economic Crime Bill goes back to Commons
The House of Lords completed its scrutiny of the Economic Crime and Corporate Transparency Bill on 4 July. The Bill now returns to the Commons for consideration of the Lords’ amendments. At third reading...
Government consults on AML supervision reform
Treasury is consulting on reform to the AML and CTF supervisory system, in line with commitments in the Economic Crime Plan 2023-6. Treasury’s 2022 review of the UK’s AML/CTF regime identified that there had...
Government concede on FTP.. maybe
A new version of the Economic Crime and Corporate Transparency Bill, published at the end of the Lords Report stage, contains some good news for those who opposed the narrow scoping of the proposed “failure to...
FSM Bill gets Royal Assent
As expected, the Financial Services and Markets Act 2023 got Royal Assent on 29 June. Heralding it, Treasury described its key features as: bringing the ability to tailor financial services regulation to fit UK markets...
FOS warns of “hybrid” scam increase
FOS has noted that the number of complaints it receives about scams generally is increasing – with a 17% increase in APP fraud complaints, but also a higher proportion of “complex” scam complaints, for...
FSM Bill completes Parliamentary process
The FSM Bill returned to the Lords for consideration of the few amendments the Commons had made. These were agreed, and so the Bill has completed its Parliamentary passage and now awaits Royal Assent. It is expected to...
Treasury approves JMLSG guidance changes
Treasury has approved 3 recent sets of changes to JMLSG guidance – submitted in August 2022, November 2022 and March 2023.
Treasury updates AML high risk third countries
Treasury has published an advisory on high risk third countries for money laundering and terrorist financing purposes following FATF’s latest meeting. The list of jurisdictions, which mirrors the FATF list, will...
FCA and SFO publish MoU on enforcement co-operation
FCA and SFO have published their MoU setting out their intentions to cooperate in relation to new investigations, intelligence developments, investigations and prosecutions. The ‘Principles of Co-operation’...
FSMB back in Commons on 26 June
The FSMB will return to the Commons on 26 June, for the House to consider the version as amended in the Lords.
BoE updates on CHAPS APP plans
The Deputy Governor of BoE has written to the Treasury sub-committee on Financial Regulation to update on progress on protection from APP fraud within the CHAPS system. The letter confirms the BoE’s intention to...
Lords passes FSM Bill
The FSM Bill has had its third reading in the Lords, and has been passed and returned to the Commons as amended in the Lords. The Commons now needs to consider the Lords’ amendments, and, if all is agreed, the...
Government adds identification doctrine reform to Economic Crime Bill
The Government has added a new proposal to the Economic Crime and Corporate Transparency Bill which will address the long-overdue reform of the identification doctrine. Following significant criticism of many aspects of...
EBA not pleased with ML/TF risk management in payments firms
EBA is concerned that, despite the high inherent risk of money laundering and terrorist finance in the payments sector, PIs generally do not manage their risks adequately. This is exacerbated by supervisors often not...
FSM Bill: Lords Report stage day 3
Day 3 of the debate on the FSM Bill at Lords Report stage included: a debate on forest risk commodities, which was approved on a vote; a proposal for a number of amendments relating to liability of PSPs for fraudulent...
Tribunal disagrees with FCA on JBI individual bans
The Upper Tribunal has published its decision in relation to FCA’s decision to ban 3 individuals working for Julius Baer International for lack of integrity, following its finding that JBI had breached its rules...
HMRC publishes list of non-MLR compliant businesses
HMRC has published an updated list of businesses that are not compliant with the MLRs. All but one were fines on mainly estate agencies and accountancy service providers that had failed to register, but one, a fine of...
PSR confirms new APP scam reimbursement rules
PSR has confirmed new rules following its proposals to bring in measures to clarify how mandatory reimbursement for APP scams will work in practice. It says the requirements will prompt a “step change” in...
NCA publishes updated SARs guidance
NCA has updated its guidance on submitting better quality SARs. As a reminder, the guidance: explains how to make online SARs and the advantages of SAR online; notes when reports should be made to other agencies;...
FCA urges “do the right thing”
Therese Chambers has spoken on the importance of people in the financial services sector doing the right thing on a day to day basis, and how well run firms will achieve better outcomes for their clients. She noted some...
FCA updates information on WealthTek administration
FCA has updated its website with details of the progress of the investigations into WealthTek LLP and its principal partner, John Dance. FCA continues its regulatory and criminal investigation into both, including into...
JMLSG consults on discrepancy reporting changes
JMLSG is consulting on changes to Part I of its Guidance to: take account of amendments to the law relating to discrepancy reporting: the changes include specifying information firms should obtain and sets out a risk...
New podcast on APP fraud
In the second of Rashmita Roy Chowdhury and Stephen Dilley’s podcasts on APP fraud, they look at recent judgements where the Quincecare duty and banks’ liaiblity under it are being put in the limelight.
FCA publishes authorisations metrics Q4 2022/23
FCA has published its authorisations metrics for the quarter ended March 2023. The metrics show that FCA is continuing to make progress towards meeting its targets, and that it has improved on the significant delays...
UK and EU publish draft MoU on FS cooperation
The UK and EU Commission have published their draft MoU on regulatory cooperation in financial services. The draft is still subject to the internal processes of the EU, but both parties intend to sign it shortly. The...
FSMB: Lords report stage scheduled for 6 June
The report stage in the Lords for the FSM Bill will start on 6 June. There is no set length of time for it to last, although further sittings have already been scheduled for 8 and 13 June.
FCA speaks on regulatory response and changing threats
Sarah Pritchard has spoken on the future of non-financial risk and control across the 3 Lines of Defence. She discussed: FCA’s campaign to warn finfluencers against promoting illegal or inappropriately risky...
FCA and police act on more illegal crypto ATMs
Following previous initiatives, FCA and relevant police units have inspected sites in Exeter, Nottingham and Sheffield suspected of housing illegal crypto ATMs.
FCA publishes Decision Notices on bank and employees
FCA has published Decision Notices in respect of Banque Havilland and 3 of its employees for acting without integrity by creating and disseminating a document which contained manipulative trading strategies aimed at...
Home Office publishes Economic Crime Survey 2020
The Home Office has published its findings from the 2020 Economic Crime Survey. It surveyed businesses in selected sectors and found that around 1 in 5 businesses had been a victim of fraud in the 3 years running up to...
Home Office publishes fraud strategy
The Government has announced the creation of a new National Fraud Squad as part of the Fraud Strategy. The strategy includes: new measures to ban cold calls on all financial products; working with Ofcom to further clamp...
Lords Committee debates “failure to prevent fraud”
The Lords Committee has debated the Government amendment to create a new “failure to prevent fraud” offence. Lord Sharpe said the offence would drive change and facilitate prosecutions without duplicating...
Market Watch reports on CFD market abuse review
FCA’s latest edition of Market Watch looks at the results of FCA’s market abuse peer review into firms that offer CFDs and spread bets. These products are particularly vulnerable to being used for insider...
FCA sets out measures to reduce cash money laundering risks
FCA has worked with other organisations such as the National Economic Crime Centre, to work on a package of guidance for banks to strengthen controls against the risk of criminals looking to launder money through the...
Raconteur feature on crypto exchanges – see our thoughts
WBD’s Andrew Parsons has been featured in a Raconteur article looking at the evolving risks of crypto exchanges and approaches to regulation.
OFSI publishes high value dealer guidance
OFSI has updated its suite of guidance materials to include specific guidance for high value dealers, luxury goods markets and art market participants. The guidance includes information on popular circumvention...
EP ready for discussion with Council on new AML measures
The European Parliament and Council are about to open talks on reforms to EU AML legislation and the creation of a new AML Authority. Talks on the package that includes a Directive and Regulation on updating AML and CDD...
Wolfsberg Group publishes ABC guidance
The Wolfsberg Group has published updated ABC Compliance Programme Guidance. The guidance updates the 2017 version and sets out the critical elements to a good compliance programme to mitigate ABC risks. The update...
Government outlines new FTP offence
The Government has finally set out its proposals and published a fact sheet about its proposals for the new “failure to prevent” offence. It will be introduced in the Economic Crime and Corporate...
Government publishes Economic Crime Plan 2
The Home Office and Treasury have published “Economic Crime Plan 2“, a 3 year plan to build on existing and create new initiatives in fighting economic crime. Key initiatives and plans include: getting 475...
BoE and PRA feed back on cyber stress test results
The BoE and PRA have written to FMIs and PRA-regulated firms setting out the thematic findings from the 2022 Cyber Stress Test. The test looked at a hypothetical data integrity scenario in retail payments in which a...
NCA updates SARs reporter booklet
NCA has published a March 2023 edition of its SARs reporter booklet. The update includes a snapshot of examples of the work enforcement agencies do in using SAR intelligence, using sanitised examples.
Treasury and FCA to update criminal market abuse regime
Treasury and FCA have completed their review of the criminal market abuse regime and have concluded that there are a number of areas in which it would benefit from an update. The criminal regime has barely been updated...
PSR confirms APP scam data publication plans
PSR has confirmed that it will direct 14 large UK PSPs to collect and provide APP scam data to it which will cover 95% of transactions. The data will show: the proportion of APP scam victims who do not get reimbursed...
APP fraud podcast
Listen to the first in our series of podcasts on APP Fraud.
The podcast discusses APP fraud’s scope and growth, banks’ duties and legislative proposals to tackle it.
FSM Bill 9th Grand Committee session
The 9th Lords Grand Committee session on the FSM Bill took place on 21 March. Topics debated were: the proposal to limit the powers of PRA to prevent a matching adjustment being applied to a portfolio of high risk or...
Parliament debates AML levy proposals
A delegated legislation Committee in Parliament debated the draft Economic Crime (Anti-Money Laundering) Levy (Amendment) Regulations 2023, which Andrew Griffith described as the final step in implementing the levy by...
LSB updates CRM Code
The LSB has updated the CRM Code, by making amendments that require signatory firms receiving scam payments to play a greater role in protecting the customer by trying harder to stop any money actually changing hands...
OFSI updates penalties guidance
OFSI has updated its guidance on assessing sanctions breaches to include how it assesses penalties where there has been an incorrect assessment of ownership and control of an entity. The additions to the guidance...
FCA priorities for payments firms
The FCA has published a portfolio letter setting out its priorities for payments firms. The FCA raised concerns that many payments firms do not have sufficiently robust controls, and it considers this an increased risk...
Jasmine ZacherFATF publishes Countering Ransomware Financing report
FATF has published its report on countering ransomware financing, which analyses the methods criminals use to carry out ransomware attacks and how payments are made and laundered. It reveals that criminals predominantly...
FSM Bill Committee day 8
On 13 March 2023, the House of Lords Grand Committee continued its line by line examination of the FSM Bill, which took place during the eighth day of committee stage. The amendments that were discussed covered clauses...
FCA issues Supervisory Notice to Roark Holdings Ltd
FCA has issued a Supervisory Notice to Roark Holdings Ltd varying the firm’s authorisation under the PSRs 2017 by imposing restrictions on its business due to the firm’s failure to inform the FCA of a major...
FCA publishes its Perimeter Report 2023
The FCA has published its latest annual Perimeter Report. It highlights some of the challenges faced within the current financial services regulatory perimeter and signposts desired future action the FCA would like to...
FATF publishes international standards on combating money laundering and the financing of terrorism & proliferation
FATF has published its international standards on combating money laundering and the financing of terrorism & proliferation. The recommendations contain a comprehensive and consistent framework of measures for...
Government responds on Fraud
The Government has published its response to the House of Lords Fraud Act 2006 and Digital Fraud Select Committee report on “fighting fraud: breaking the chain”. Among its responses to the recommendations...
FCA to collect economic crime levy from July
FCA is to collect the Treasury’s economic crime levy from the firms for whom it is responsible (that is, relevant regulated firms and those registered with FCA for AML supervision). This year’s levy will...
FCA takes further action on crypto ATMs
FCA has undertaken an exercise with the Metropolitan Police which has resulted in the discovery of several illegally operating crypto ATMs in East London. FCA is now working with the National Economic Crime Centre to...
House of Lords updates on FSM Bill
Ahead of the seventh day of debate on the FSM Bill in the Grand Committee, the House of Lords has published: a new list of amendments; a letter promised by Baroness Penn to all members on matters raised at the second...
JMLSG updates guidance
JMLSG has submitted several updates to its guidance to Treasury for approval. There is one update to Part I, relating to Chapter 6, and highlighting the ability of FOS to effectively handle complaints with a money...
Treasury Committee unimpressed with scam reimbursement proposals
The Treasury Committee has described the proposals for the PSR to require banks and building societies to fully reimburse victims of APP scams where the loss is over £100 as “half baked”. The Treasury Sub...
Regulators update Regulatory Initiatives Grid
The Financial Services Regulatory Initiatives Forum has published the sixth edition of the Regulatory Initiatives Grid. The edition was due last November, but has been held back to allow the regulators to consider how...
Conclusions from FATF plenary
FATF held its latest plenary session from 22-24 February. Key decisions and updates were: To suspend the membership of the Russian Federation; Adding South Africa and Nigeria to the list of jurisdictions under increased...
PSR speaks on tackling APP fraud
Chris Hemsley has spoken of PSR’s role in regulating all UK payment systems and the importance of collaboration in tackling fraud. His speech focussed on APP fraud, noting the significant problem it poses and...
Court requires FOS to review decision
The High Court has taken the relatively rare step of ordering FOS to review a decision. The complainant, Mr Moniak, had been a customer of Barclays. Following an inheritance in 2010, a total of £500,000 was paid into...
New AML guidance for art market participants
The British Art Market Federation has published guidance for its members on compliance with AML requirements. Treasury has approved the guidance, which is to be read alongside HMRC guidance. The guidance explains who...
FCA cracks down on crypto ATMs
No crypto ATM operators are currently registered with FCA for AML supervision, so FCA is cracking down on all unregistered machines and their operators. Following a joint operation with West Yorkshire Police, it has...
Wolfsberg Group updates DDQ materials
The Wolfsberg Group has updated various documents: the new version of the Correspondent Banking DDQ includes a new section on fraud, sanctions policies, additional questions and formatting changes; the new version of...
PSR consults on reporting of APP scams
PSR has issued a consultation on guidance to help PSPs to provide the right data when reporting APP scams to the regulator. The first collection is coming soon, with firms’ submissions due in May, with the first...
Economic Crime Bill continues Lords progress
The Economic Crime and Corporate Transparency Bill is continuing its progress through the House of Lords, with its second reading on 8 February. During the reading, there was significant discussion about fraud...
FSMB 4th session in Grand Committee
The 4th sitting of the Grand Committee on the FSM Bill took place on 6 February. The Committee discussed: financial inclusion, both as a general principle and in terms of the reality of retail investors being excluded...
Treasury Committee critical of scam reimbursement plans
The Treasury Committee has published a report criticising both the “painfully slow” implementation of mandatory reimbursement for fraud victims and the PSR’s proposals that banks and building societies...
Treasury publishes collection of G7 cyber docs
Treasury has published a set of papers from the G7 Cyber Expert Group, looking at various cyber security issues in the finance sector. The group has been active since 2016, but Treasury is now publishing a collection...
NCA updates SAR guidance for new Portal
NCA has published a suite of documents comprising documents giving guidance on the new SAR Portal, together with FAQs on its use and new guidance for firms within the regulated sector on submitting SARs.
Treasury feeds back on cryptoasset promotions
Treasury has published its response to consultation on cryptoasset promotions. In summary, and in line with the decision to regulate crypto-related activities, the Government will bring promotions of cryptoassets within...
UK criticised in CPI 2022
The 2022 Corruption Perceptions Index has been published. There is little significant change, with Scandinavian countries taking 4 of the top 6 spots, and most of the top 20 being European countries. The UK is in...