NCA is to conduct a pre-investigative evidential review into allegations of fraud, money laundering and corruption in relation to the business of the then HBOS Impaired Assets Division in London and the South East, that...
Category - Financial Crime Prevention
Emma RadmoreGovernment publishes Sanctions and AML Bill: exceptions and licenses Policy Note
In support of the Sanctions and Anti-Money Laundering Bill, the FCO has published out a Policy Note which describes the government’s intended approach to: licensing applications in relation to asset freezes...
BEIS consults on SLP reform
BEIS is consulting on reforms to the laws governing Scottish Limited Partnerships to address the illegitimate uses to which some SLPs have been put. The Government has found evidence that SLPs have been exploited by...
FATF discusses FinTech and RegTech
FATF has updated on recent discussions with the FinTech and RegTech sectors. It has recently focused on: using digital IDs for CDD. Institutions increasingly use this, and discussions focused on whether there is any...
TI writes to SFO on DPAs
Robert Barrington, Executive Director of Transparency International, has written to David Green at the SFO warning that DPAs, while a useful tool that TI supports must nevertheless be used properly, so as not to become...
Claims Management regulations published for consultation
As part of the proposed process of transferring the regulation of Claims Management Companies to the FCA, HM Treasury is consulting on draft regulations that will form part of a final statutory instrument creating a...
Emma RadmoreChancellor calls for international approach to tackling corruption
Philip Hammond is to use the G7 and IMF meetings in Washington this week to call for: international agreement on denying North Korea access to finance. He wants all jurisdictions to push their banks and insurance...
Financial crime prevention breakfast briefing 16 May
We are pleased to be hosting and speaking at a breakfast briefing for MLROs.com, giving an update on financial crime prevention laws and regulations and related developments. Attendance is free, but please register...
FCA looks at confirmation of payee development
FCA has published an insight article looking at the ongoing problems for victims of APP scams. The article looks at initiatives to minimise the risks of falling victim to these scams and, in particular, how the advent...
Updating the Financial Crime Guide
We have written an article on FCA’s proposals for updating the Financial Crime Guide.
ESAs report on key risks for H2 2017
The Joint Committee of the European Supervisory Authorities has published its report for the second half of 2017. This report highlights the following potential sources of instability: repricing of risk premia...
FCA and PRA publish business plans
The FCA and the PRA have both published their business plans for 2018/2019. The FCA’s business plan shines a spotlight on consumer protection, including in relation to pension products and high-cost credit, as an...
UK Finance looks at DLT and identity validation
A paper published by the Whitechapel Think Tank, supported by UK Finance, looks at how technology can help the safe validation of identity and verification. It examines how distributed ledger technology can provide a...
FIN. TeamTreasury 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...
FCA PUBLISHES GUIDANCE CONSULTATION ON FINANCIAL CRIME SYSTEMS AND CONTROLS
The FCA has published a Guidance Consultation on amending the FCA’s guidance on financial crime (GC18/1). The proposed changes include the addition of a chapter on insider dealing and market manipulation, and...
Complaints Commissioner concerned about information sharing between FOS and FCA
In a recent report the Complaints Commissioner expressed concern about the absence of published information about how and in what circumstances information about live ombudsman cases may be shared between the FOS and...
FCA sets out supervision and enforcement approach
FCA has published a draft of its approach to enforcement and supervision. The documents follow its publication of its Mission, in which it committed to publishing a series of documents setting out how it carries out its...
FATF reports to G20
FATF has reported on its work and priorities to the G20 Finance Ministers and Central Bank Governors meeting. The report covers its recent and future work on key initiatives, including improving transparency in...
SFO speaks on DPAs and investigations
Camilla de Silver of the SFO has spoken on prosecutors’ priorities. She started by noting the role of her audience in getting in place policies and procedures that would be adequate to provide a defence to an...
FPC updates financial stability outlook
In its latest meeting, the Financial Policy Committee focused on: the outlook for UK financial stability generally: it thought these were standard, excepting the Brexit risks, with risks from global vulnerability still...
Treasury calls for evidence on digital payments
Treasury has published a call for evidence on the role of cash and digital payments in the new economy. It asks for views by 5 June to help it explore how it can support digital payments, support transition from cash...
JMLSG publishes proposed sector revisions
The JMLSG has published proposed revisions to the text of sector 12 (Asset Finance) and sector 17 (Syndicated Lending). The proposed revisions update the descriptions of how the sectors work, how to assess the risks in...
Wolfsberg updates Correspondent Banking DDQ
The Wolfsberg Group has published the updated version of its Correspondent Banking Due Diligence Questionnaire and related guidance material. It also notes that it has become aware that institutions have been using the...
Treasury approves JMLSG amendments
Treasury has approved the revised JMLSG Guidance that the JMLSG submitted in December 2017.
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...
FCA fines and bans former trader for benchmark manipulation
FCA has fined Guillaume Adolph, a former short-term interest rate derivatives trader with Deutsche Bank, £180,000 and banned him. It had originally issued its warning notice in early 2014 but proceedings were stayed...
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...
FCA makes new rules
FCA’s latest Handbook Notice confirms changes to: FEES to ensure the life and pensions intermediation class can still benefit from support from the retail pool SUP to align the Financial Crime Annual Return to the...
Sanctions and AML Bill progresses
The Sanctions and AML Bill has heard its second reading in the Commons and now passes to the Public Bill Committee stage on a date not yet announced.
Further SFO charges in Barclays case
The Serious Fraud Office (SFO) has charged Barclays Bank Plc (Barclays) with unlawful financial assistance contrary to s151(1) and (3) of the Companies Act 1985. This relates to the financial assistance Barclays gave to...
Illegal money lender imprisoned
An illegal money lender has been sentenced to imprisonment of 3.5 years for offences under FSMA and the CCA. In addition to bringing the successful prosecution against Dharam Gopee, FCA also successfully obtained a...
Book your place on financial crime prevention course!
We are hosting and presenting the morning session of the Financial Crime Compliance Certification course on 14 March. Suitable for senior managers needing a broad understanding of financial crime prevention laws and...
FCA sends “Dear CEO” letter on APP fraud
FCA has published a “Dear CEO” letter emphasising the work required to combat authorised push payment (APP) fraud. This follows the Which? super-complaint in September 2017, and the Payment Systems...
FCA fines online broker £1,049,412 for poor market abuse controls and failure to report suspicious client transactions
The FCA has fined online broker, Interactive Brokers (UK) Limited (IBUK), £1,049,412 for failings in its post-trade systems and controls for identifying and reporting potential market abuse between 6 February 2014 and...
Unexplained Wealth Orders provisions take effect
The provisions of the Criminal Finances Act introducing unexplained wealth orders as a new investigatory tool take effect from 31 January.
Sanctions and AML Bill progresses
The Sanctions and AML Bill is due to finish its Lords stages this week with a “tidy up” reading in the Lords on 24 January. It will then pass to the Commons.
EP updates on MLD5 and IDD votes
The EP’s Legislative Observatory has been updated to indicate:
a date of 16 April for a hearing on MLD5; and
a date of 28 February for a hearing on the IDD extension.
EU updates North Korea sanctions
The EU has added to its list of designated persons in relation to North Korea to align its list with UN measures. The EU has already autonomously listed several others. The Council now intends to ensure swift...
TI criticises UK role in laundering
Transparency International has highlighted and criticised the role London plays in international money laundering. It comments on a new investigation focusing on structures used to help sell frozen assets of the former...
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...
JMLSG updates guidance
JMLSG has published further amendments to its Guidance, most recently updated in June 2017, and submitted the entire revised Guidance to Treasury for approval. Atlhough the amended Guidance will have legal status only...
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...
FCA publishes distributed ledger technology feedback statement
Following the publication of its discussion paper regarding the risks and opportunities, and characteristics of distributed ledger technology (DLT) in April 2017, the FCA’s feedback statement FS17/4 sets out...
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...
FCA highlights transaction reporting and MAR issues
The latest edition of Market Watch looks at: a reminder that an investment firm’s transaction report must reflect the transaction from its own perspective, reporting its immediate counterparty or client (whether...
Home Secretary announces new national economic crime centre to tackle high level fraud and money laundering
The Home Secretary Amber Rudd has announced plans to tackle economic crime to the assist in preventing fraud, money laundering and corruption. The measures include a new national economic crime centre within the...
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...
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...
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...
FCA succeeds in investment scheme prosecution
Two individuals have been found guilty of various offences relating to carrying on regulated activities without authorisation, false and misleading impressions and being a company director contrary to the Theft Act, in...
FCA publishes quarterly consultation
FCA’s latest quarterly consultation proposes minor changes to: DEPP due to a change in FCA’s governance structure LR, in the meaning of Premium Listing Principle 6 and, to DTR, on where diversity reporting...
Commission adopts PSD2 authentication RTS
The European Commission has finally adopted the RTS under PSD2 on strong customer authentication (SCA) and common and secure open standards of communication. The key purpose of the RTS is to create stringent security...
Initial coin offerings: regulation and the risks
We’ve written a briefing on recent regulatory warnings about ICOs, and how they may fall within the UK’s regulatory perimeter.
FCA updates on wholesale banks compliance review
FCA has published a note summarising the results of its review of the compliance function in wholesale banks. It had asked 22 wholesale banks (including global banks, medium-sized banks focusing on specific areas or...
FCA fines former BAML trader for market abuse
FCA has fined Paul Walter, a bond trader formerly with Bank of America Merrill Lynch International, £60,090 for market abuse. It found Mr Walter created a false and misleading impression about the supply and demand in...
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...
FCA speech on effective compliance with the Market Abuse Regulation
On 14 November 2017, the FCA published a speech delivered by Julia Hoggett, Director of Market Oversight at the FCA, at the ‘Recent Developments in the Market Abuse Regime’ conference. The speech focused on effective...
ESMA warns investors and firms on dangers of ICOs
ESMA has become the latest body to denounce initial coin offerings (ICOs), issuing statements directed at investors and firms highlighting the distinct risks involved. Echoing FCA’s previous warnings , ESMA has...
FCA publishes latest Market Watch
FCA’s latest Market Watch newsletter highlights: the fast approach of the deadline for ensuring all entities that need an LEI have one; ESMA’s reference data files that are available to download; the...
FCA publishes MLR Annex 1 individual form
FCA has published the form “Annex 1” institutions must complete in respect of the relevant senior individual and nominated officer within their firms. FCA says it now requires this form to be completed...
FATF updates on NCCTs and developments
FATF has held its plenary meeting in Buenos Aires. Outcomes from the meeting include: an update on the list of NCCTs. FATF’s stance remains unchanged on North Korea and Iran. Countries with Strategic Deficiencies...
Sanctions and AML bill
We have written a summary of the Sanctions and Anti-Money Laundering Bill as it starts its Parliamentary process.
New date for financial crime compliance course
We have agreed with the Compliance Register a new date for our popular Financial Crime Compliance Professionals Certificate Course. We will host this on 14 March 2018. Bookings are already open. Please contact the...
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...
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...
HM Treasury publishes national risk assessment of Money Laundering and Terrorist Financing Regulations 2017
HM Treasury has published the 2017 national risk assessment (NRA) of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (SI 2017/692) (MLRs). In 2015, the...
Sanctions and Anti-Money Laundering Bill introduced in Parliament
The new Sanctions and Anti-Money Laundering Bill (the Bill) was introduced in Parliament on 18 October, following the announcement of the Bill in August. This Bill seeks to enable the UK to continue to comply with the...
FCA’s first Financial Lives Survey: 50% of UK adults potentially vulnerable
After collecting responses from over 13,000 UK consumers, FCA has revealed the results of its largest tracking survey of consumer behaviour and use of retail financial products and services. Aiming to tell the financial...
Commission consults on central bank account registry access
The European Commission has opened a public consultation on broadening law enforcement access to centralised bank account registries, with a view to increasing the speed and effectiveness with which authorities can...
CFA moratorium provisions to take effect
The second commencement order for the Criminal Finances Act 2017 brings into force several new provisions, including those on the potential extension of the moratorium period following a SAR and the new procedure for...
Wolfsberg Group updates standards
The Wolfsberg Group has updated: its Correspondent Banking Due Diligence Questionnaire. The Questionnaire has been around for some years, but this is its first significant and substantial overhaul; and its Payment...
Bond Dickinson financial services team ranked in Legal 500
The Bond Dickinson financial services team is delighted to have achieved a Legal 500 ranking. The new directory described the team as providing ‘responsive, practical, commercial and cost-effective’ advice to a wide...
Financial Crime Compliance Course rescheduled
The Financial Crime Compliance Professionals Certificate course, hosted by us, will now be on 14 March 2018. For details, please see the Compliance Register’s website.
Square Mile judicial complex receives backing from City of London Corporation
In a bid to bolster the capital’s reputation for financial and legal services post-Brexit, the City of London Corporation (CLC) has announced its backing for the development of a new court complex on Fleet Street...
Failure to prevent facilitation of tax evasion
The new corporate offence under the Criminal Finances Act trips off the tongue! It takes effect from 30 September, and “relevant bodies” must have considered their exposure to it and put in place reasonable...
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...
FCA speaks on investigations and meeting MiFID 2 deadlines
Mark Steward has spoken on the increase in FCA investigations into market conduct over the past year. He said the 75% increase results from: more investigations into capital market disclosure issues the extension of...
OFSI publishes quick guide to sanctions
OFSI has published a quick guide to UK business’ obligations under financial sanctions requirements. The material is not new, but repackages some existing guidance on: complete general guidance – including...
Lloyd’s sets out CFA expectations
Lloyd’s has published a market bulletin on the Criminal Finances Act, focussing on its expectations of managing and members’ agents – in particular the need for senior management appreciation of the...
Government makes CFA guidance
The Facilitation of Tax Evasion Offences (Guidance about Prevention) Regulations 2017 were laid before Parliament on 6 September and take effect on 30 September alongside the relevant parts of the Criminal Finances Act...
OFSI updates frozen assets reporting forms
OFSI has published an updated webpage with a new template for the annual frozen asset review and reporting form.
SFO speaks on DPAs
Alun Milford has spoken on SFO’s use of deferred prosecution agreements for dealing with “certain co-operative and reformed corporate offenders”. He noted that SFO has now secured 4 DPAs, of which 3...
Criminal Finances Act – are you ready for 30 September?
We have updated our article on the Criminal Finances Act, to reflect the decision to bring into force the offence of failing to prevent facilitation of tax evasion on 30 September. Have you considered how this affects...
Financial Crime Compliance Course
Bond Dickinson will be hosting and speaking at the 2017 Financial Crime Compliance Professionals Certification Course on 4 October. Attendance is limited to only 30 delegates, so book soon!
Commission consults on bank account registry impact
The European Commission has published for comment an inception impact assessment on broadening the access of centralised bank account registries under the MLD5 proposals.
It asks for comments by 6 September.
Sanctions guidance updated
Treasury and OFSI have updated their guidance on financial sanctions to bring the general guidance and guidance on the relatively new monetary penalties for breach together.
Treasury updates sanctions guidance
HM Treasury and OFSI have updated their guidance on what to do in the case of a suspected breach of financial sanctions. It has published its suspected breach form, and says firms should report suspected breaches as...
Government publishes post-Brexit sanctions plans
Treasury, the FCO and the Department for International Trade have announced the publication of the Sanctions Bill, which will ensure the UK has the necessary powers to implement sanctions post-Brexit and also give it...
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...
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...
FCA makes new rules
At FCA’s July Board meeting it made several new rulebook instruments. Key changes are: to make minor changes to approved persons application forms with effect from 12 September; to set the fees payable to the PSR...
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...
Council suggests high-risk jurisdiction methodology
In an attempt to solve the current problems around the Commission’s proposals for a list of high-risk jurisdictions for the purposes of MLD4, the Council is now proposing a methodology the Commission should use...
Failure to prevent tax evasion offences taking effect in September.
The first commencement order under the Criminal Finances Act 2017 has been made. It brings the corporate offences of failure to prevent facilitation of tax evasion into force on 30 September. The provision enabling...
Brexit: European Union (Withdrawal) Bill presented to Parliament
The Government presented the European Union (Withdrawal) Bill to Parliament on 13 July for its first reading. The Bill seeks to repeal the European Communities Act 1972 on the day when the UK leaves the European Union...
FATF Presidency updates on priorities
FATF has taken the opportunity of a new president (from Argentina), to update on its objectives. Key objectives will include: deepening knowledge and understanding of terrorist methodology and encouraging information...
FCA updates its webpage to reflect application of Benchmarks Regulation
FCA is consulting on proposed changes to its Handbook to accompany the application of the EU Benchmarks Regulation (BMR) from 1 January 2018. FCA is proposing to amend and remove some Handbook rules to ensure they are...
ISSA publishes financial crime compliance questionnaire
ISAA has published a financial crime compliance questionnaire to accompany its revised financial crime compliance principles it recently published.
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...
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...