ESMA has updated its FAQs on MAR to include new questions on:
persons closely associated to a PDMR;
blanket cancellation of orders policies; and
disclosure of inside information relating to Pillar II requirements.
ESMA updates MAR FAQs
Category - Financial Crime Prevention
FCA finalises PEP guidance
FCA has published its finalised guidance on the treatment of PEPs for AML purposes. It received 43 responses to its consultation on the guidance, all but one of which was in favour of guidance being issued, but many of...
Emma RadmoreWolfsberg Group updates ABC guidance
The Wolfsberg Group has updated its guidance for financial institutions on how to construct an effective ABC compliance programme. Recent papers focus on particular issues such as PEPs. This paper focuses on how...
Benchmarks Level 2 amending Regulation published in OJ
A Regulation amending the Implementing Regulation made under the Benchmarks Regulation has been published in the OJ. The Benchmarks Regulation has been introduced to recognise that benchmarks play an important role in...
Changes to SLP PSC requirements published
The Scottish Partnerships (Register of People with Significant Control) Regulations 2017, made on 22 June and taking effect mainly from 26 June, have been published. The Regulations transpose Article 30 of MLD4 on...
FIN. TeamFATF consults on information sharing
FATF is consulting on draft guidance on private sector information sharing. The guidance considers the issues faced by financial institutions when sharing information for AML/CFT purposes both within and outside their...
TI warns on SLP risks
Transparency International has welcomed the changes the Government has made to implement the MLD4 beneficial ownership requirements in respect of Scottish Limited Partnerships. It had previously expressed significant...
FCA advises firms on MLR notification requirements
FCA has created a new page on its website to reflect the MLD4 requirement for firms that are authorised under FSMA and supervised by FCA for their MLR compliance to notify it if they undertake money services business...
ESAs publish central contact point recommendations
The ESAs have published draft RTS to help Member States work out when PSPs and E-money issuers should appoint a “central contact point” to help effective AML oversight of the activities of their networks in...
FATF holds plenary meeting
In among the publications heralding MLD4’s implementation, FATF held its latest plenary meeting. Key announcements included: continuing concern over North Korea and a continued call for members to apply effective...
PSC guidance updated for MLD4
BEIS has published updated guidance to reflect the effects of MLD4 on the PSC Register and regime.
ESAs publish MLD4 AML/CFT guidelines
The ESAs have published their final guidelines on AML and CFT required under MLD4. The guidance is intended for credit and financial institutions and should provide them with the tools they need to make risk-based...
Commission reports on ML risks
The Commission has published its report to the EP and Council on its assessment of the AML and TF risks affecting the internal market and relating to cross-border activities. It published the report, and supporting...
FCA makes new rules
FCA made 4 new rules instruments at its June Board meeting. new fees rules taking effect from 3 July, to raise fees and levies to provide funding for the FOS and MAS to meet their statutory objectives, and to raise...
Treasury makes MLR 2017 and JMLSG finalises guidance
Treasury has published the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, which were laid before Parliament late on 22 June to come into force to meet MLD4...
FCA Launches cyber security guide in wake of cyber attacks
FCA’s guide can be found here. FCA has designed the guide to help firms, particularly smaller businesses, become more resilient to cyber attacks and to respond appropriately to cyber incidents. FCA has seen a...
SFO brings fraud charges against Barclays
SFO has charged Barclays Bank and 4 individuals with conspiracy to commit fraud and providing unlawful financial assistance in relation to capital raising and loan facilities relating to Qatar during 2008.
EBA provides draft response to EC consultation on Fintech
The EBA has produced a draft response to the EC’s consultation on ‘Fintech: a more competitive and innovative European Financial Sector.’ The response sets out the EBA’s views on questions in the...
ISSA updates financial crime principles
The International Securities Services Association (ISSA) has updated its financial crime compliance principles for securities custody and settlement. The principles focus on governance and control, due diligence and...
FCA publishes quarterly consultation
FCA’s latest quarterly consultation proposes changes to: TC to update the list of appropriate qualifications; SUP to clarify how the requirement to have a client assets report applies to loan-based crowdfunding...
FCA consults on MLD4
FCA is consulting on changes to its Handbook and Guidance to ensure it is in line with MLD4 and the Fund Transfer Regulation. The draft MLRs that will replace the 2007 version give FCA greater supervisory powers over...
JMLSG publishes e-money update
JMLSG has published (on 10 June) its consultation draft of changes to the electronic money chapter within Part 2 of its guidance. It asks for comments by 20 June – justifying the short period by saying the chapter...
Council pushes forward on AML criminal laws
The Council of the EU has adopted its position on the proposal for a Directive to set minimum rules defining criminal offences and sanctions relation to money laundering. Now the EP needs to decide on its position...
Basel Committee updates AML guidance
The Basel Committee has updated its guidelines on sound management of risks relating to money laundering and the financing of terrorism to provide clearer guidance in the chapters on correspondent banking and the...
ESMA responds on Fintech
ESMA has responded to the Commission’s consultation on Fintech. It sees Fintech as a positive evolution so long as business models continue to aim to improve the customer experience and financial inclusion. It...
ECON publishes draft retail FS plan
The EP has published a draft report on the Action Plan for retail financial services. The report: says the EU retail financial services market is still underdeveloped and fragmented, but recognises that such a market...
FCA looks at dividend arbitrage
FCA’s latest MarketWatch newsletter sets out the results of its review of dividend arbitrage, a process which involves placing shares in alternative tax jurisdictions around dividend dates, with the intention of...
ESAs consult on group wide AML standards
The ESAs are consulting on RTS for firms in groups straddling the EU and third-countries, where the law of a third country prevents the implementation of group-wide AML/CTF policies in branches or majority-owned...
Presidency publishes money laundering crimes general approach
The Presidency has confirmed to the Council the general approach to the Directive on countering money laundering by criminal law. It has also published the consolidated compromise text of the proposed Directive. The...
ESMA updates MAR Q&A
On 30 May 2017, ESMA published an updated version of its Q&A on the Market Abuse Regulation.
FATF FinTech and RegTech forum 2017
On 30 May 2017, the Financial Action Task Force (FATF) published a summary of its FinTech and RegTech forum, which was held on 25 and 26 May 2017. The forum discussed developments in FinTech and RegTech, including peer...
Wolfsberg Group updates PEP FAQs
The Wolfsberg Group has updated its 2008 FAQs on PEPs. The new guidance clearly positions the PEP control framework within the risk based approach, and suggests an appropriate tailored manner of dealing with PEPs. It...
ESMA speaks on Regtech
ESMA has spoken on how the financial services industry has adopted Regtech. Patrick Armstrong looked at the changes in how we work that have been subject to almost constant change in the past 10 years. Yet, he said...
EP adopts Fintech resolution
The EP has adopted a resolution on the influence of technology on the financial sector. The provisional version of the resolution focuses on the rapid development of applications of fintech technologies and notes that...
EP rejects AML high risk list again
Unsurprisingly, the European Parliament has again rejected the Commission’s proposed list of high risk third countries under MLD4.
JMLSG consults on updated guidance parts 2 and 3
JMLSG is consulting, until 26 May, on updates to parts of its guidance within parts 2 and 3. It has already published a mark up of part 1 of the guidance for comment. Certain parts of part 2 have not been changed...
EP may reject MLD4 high risk list – again
The Economic and Monetary Affairs Committee and the Civil Liberties, Justice and Home Affairs Committee have again rejected the Commission’s list of high-risk jurisdictions under MLD4. This is maybe not...
Council does not object to MLD4 high-risk list
The Council has decided not to object to the Commission’s revised list of high-risk jurisdictions for the purposes of MLD4. This means the Regulation can enter into force unless the European Parliament objects...
Criminal Finances Act gets Royal Assent
The Criminal Finances Act got Royal Assent on 27 April, following its Parliamentary “ping pong”. We await official publication of the Act.
meps call for acceleration of eu fintech development
Economic and monetary affairs committee MEPs want the EU to accelerate the development of financial services enabled by new technologies (FinTech). Their key priorities are: Cybersecurity and data protection: the need...
Criminal Finances Bill nearly there
It looks like the Criminal Finances Bill will get Royal Assent before the snap general election. On 25 April, the House of Commons debated the House of Lords’ suggested changes in “ping pong” and...
Government considers sanctions laws post-Brexit
The Government has published a White Paper looking at what legislative changes the UK will need to make to preserve and continue the sanctions regime after Brexit. Currently, the UK implements most sanctions-related...
FCA publishes Mission Statement and Business Plan
FCA’s latest Mission and Business Plan contain few surprises, but indicate a lot of work in diverse areas. The Mission, which takes into account stakeholder views, seeks to explain to firms how and why FCA...
EP to debate new MLD4 third-countries list
The EP is to debate the Commission’s revised draft Delegated Regulation under MLD4 that identifies high-risk third countries. The Commission has removed Guyana from its list and added Ethiopia. EP has asked for...
EU sanctions breach penalties to increase
Treasury has made the Regulations which will increase the maximum penalties for breach of EU financial sanctions to mirror the maximum for breaches of sanctions under UK domestic legislation. The higher limits will...
ESAs publish MLD4 RBA translations
The ESAs have published the official translations of the guidelines on the characteristics of a risk-based approach to AML and TF supervision under MLD4. It finalised the guidelines last November, but the translation...
FCA to investigate HBOS Reading
FCA has restarted the investigation it originally commenced in 2013, into misconduct within the Impaired Assets team of HBOS based in Reading. It had stopped the investigation while the police were investigating...
HMT issues regulatory innovation plan
The government’s vision is for UK financial services to be the most competitive and innovative in the world, supplementing existing services with greater choice and value for consumers. The innovation plan covers how...
OFSI reminds on sanctions penalties
OFSI has reminded firms that it now has power to impose penalties for breaches of financial sanctions, and says it will normally publish details of cases where it imposes them. It has also published guidance on its...
FCA fines former investment banker for sharing confidential information over WhatsApp
The former Jeffries International banker (managing director (CF30)) received a 30% reduction to his penalty, still amounting to a hefty £37,198 fine. On a number of occasions between 24 January 2016 and 16 May 2016, Mr...
PSR publishes terms of reference for its role in preventing and responding to push-payment scams
Today, the payment systems regulator published its final terms of reference PSR will consider whether it would be effective and proportionate for operators of push payment systems to play a greater role in preventing...
FCA to tackle contactless card fraud
John Griffith-Jones, Chairman of FCA and Payment Systems Regulator, has written to Rt Hon. Andrew Tyrie MP, Chairman of the Treasury Committee, about contactless card fraud. In 2015 there was £2.5m of reported...
Sanctions fining regime effective from 1 April
A new commencement order under the Policing and Crime Act 2017 brings into force the new powers on financial penalties for breach of financial sanctions, from 1 April. Part 8 of the Act: sets the maximum imprisonment...
UK opts in to MLD4 data sharing
The UK has decided to exercise its right to opt-in to the proposed changes to MLD4 that would facilitate data sharing between financial intelligence units and enforcement authorities.
“Same business, same risks, same rules” – ECB comments on regulation of Fintech
In a statement made at an ECB Fintech Workshop, Sabine Lautenschläger (Member of the Executive Board of the ECB and Vice-Chair of the Supervisory Board of the ECB) told the audience how the ECB sees some of the...
Treasury Committee concerned about cyber strategy accountability
Andrew Tyrie (Chairman of the Treasury Committee) and Philip Hammond have been exchanging correspondence about cyber security in the financial services sector. Mr Hammond also chairs the National Security Council...
Parliament seeks clarity on ML allegations
An urgent question asked in the House of Commons on 21 March asked the Chancellor to comment on allegations of money laundering against British banks. Simon Kirby, Economic Secretary to the Treasury, took the question...
JMLSG consults on new guidance
JMLSG is consulting on revisions to its guidance, in light of the proposed new legislation implementing MLD4. The consultation covers changes to part 1, and includes a marked up version of each chapter. JMLSG says it...
FCA consults on PEP treatment
FCA has published a guidance consultation on treatment of PEPs under the draft 2017 MLRs. FCA is obliged to issue the guidance, which it says it has prepared using information it has on when firms have not applied CDD...
BEIS looks at cutting AML red tape
BEIS has published a summary of views and evidence submitted to the Cutting Red Tape review of the AML and CFT regime. Comments were mainly around: large, often confusing and sometimes duplicated amounts of supervisory...
Treasury consults on MLR 2017
Treasury has published its feedback to its consultation on implementing MLD4 into UK law and the draft Money Laundering Regulations 2017. We will cover the consultation in more detail in a separate article. They key...
Treasury updates AML advisory
Treasury has updated its money laundering advisory notice, following the FATF plenary in late February. North Korea and Iran remain jurisdictions in relation to which firms should apply enhanced due diligence measures...
EP Committees publish MLD5 report
The latest version of the report from ECON and the Committee on Civil Liberties, Justice and Home Affairs on MLD5 includes the following proposed amendments: a recommendation to consider setting a limit to cash...
SFO speaks on DPAs
Ben Morgan of the SFO has reflected on the use of DPAs in bribery and corruption cases. He stressed that it is not the UK’s stance merely to require corporates to give back illegal gains – there must be an...
In the FCA pipeline
FCA has updated its policy development webpage for March 2017. Key publications due before the summer include: March/Q1 2017: IDD Implementation – CP1 MAR 1 changes: inside information relating to commodity derivatives...
Emma RadmoreECON votes for consumer access to BO information
ECON and the Civil Liberties committee in the EP are pressing for further amendments to MLD4 to allow EU citizens to be able to access registers of company beneficial owners without having to show they have a...
PSR to look at push payment risks
The PSR has published draft Terms of Reference for a project looking at the potential for payment system operators (PSOs) to play a role in minimising consumer harm caused by authorised push payment (APP) scams in the...
FATF updates after plenary session
FATF has held its plenary meeting. Key issues discussed included: work on improving transparency and beneficial ownership: FATF and the Egmont Group are looking at mechanisms used to hide beneficial ownership with a...
Greater punishment for sanctions offences to take effect
Part 8 of the Policing and Crime Act 2017, which received Royal Assent at the end of January, and which is expected to come into force in April, gives powers under financial sanctions legislation to punish offences...
EU Fintech report to be debated in May
The EU legislative observatory indicates the EP’s report on Fintech is to be debated in committee session in mid-April and in plenary in mid-May. The draft opinion focuses on the benefits of Fintech for SMEs and...
ESAs warn on AML risks
The European Supervisory Authorities have warned the European Commission about the risks of money laundering and terrorist finance that affect the EU financial sector. The ESAs think many firms do not properly...
The Rolls Royce DPA
We have written an article about the Rolls Royce DPA in relation to bribery and corruption issues spanning many years and many jurisdictions.
FATF sets plenary agenda
FATF will be meeting for a week in Paris from 18 – 24 February. Among the items on its agenda are: further strengthening of measures to counter terrorist finance transparency and beneficial ownership the mutual...
FCA invites views on website
If you, like us, have views on FCA’s recently revamped website, you have a chance to let FCA know. It has invited views, in an online survey.
SFO announces new bribery investigation
SFO has announced an investigation into ABB Ltd’s UK subsidiaries and their officers and employees, for suspected bribery and corruption. The investigation forms part of the Unaoil investigation which SFO began...
PRA fines BTMU firms for failure to be open with it
PRA has fined the Bank of Tokyo-Mitsubishi UFJ Limited £17.95m and MUFJ Securities EMEA plc £8.925m. The fine relates to a failure of the firms to be open and honest with PRA in respect of a US enforcement action, in...
Government publishes Brexit White Paper
The Government has published its White Paper on building a new relationship with the EU after Brexit. The paper looks at the basis on which the Government wants to address the 12 principles Theresa May set out on 17...
TI publishes CPI 2016
Transparency International has published the Corruption Perceptions Index for 2016. The updated index shows little significant change at the top. Denmark remains the “cleanest” jurisdiction, now tying with...
FCA updates on skilled persons reviews
FCA has published the figures showing the number of skilled persons reviews it initiated in Q3 2016. Of the 15 reviews, 5 concerned asset management and 5 concerned insurers/
WMA holds financial crime conference
The WMA has held its annual financial crime conference. Much of the focus was on addressing the risks of cybercrime. JMLSG confirmed it is working on updating its guidance notes for MLD4 compliance.
FCA publishes Regulation Round-up
FCA’s latest “Regulation Round up” focuses on: some big issues FCA plans to address in 2017, such as the progress of the FAMR, the extension of the SMR and the closure of lending reviews; the interim...
FCA issues largest AML fine
FCA has fined Deutsche Bank £163 million, the largest fine it has imposed for AML failings. It found the bank failed to maintain an adequate AML framework from the beginning of 2012 to the end of 2015, the result of...
BoE looks at FinTech support
Mark Carney has spoken as the chair of the Financial Stability Board, looking at the potential FinTech has to make the financial system inclusive, effective, efficient and resilient. He said that the true promise of...
Wolfsberg Group updates trade finance principles
The Wolfsberg Group, the Banking Commission of the ICC and BAFT have published new Trade Finance Principles, updating the 2011 version. The update reflects, in particular, the more stringent regulatory expectations on...
LMA updates sanctions guidance
The Lloyd’s Market Association has published updated guidance on sanctions and briefed managing agents and brokers on the changes. The guidance, in new Market Bulletin Y5057, relates to processing requirements of...
EP rejects ML “blacklist”
The European Parliament has rejected the Commission’s “blacklist” of states at the highest risk of money laundering. As expected the EP’s vote confirms its belief that the list is too limited and...
May confirms Brexit Plan
Industry has reacted to Theresa May’s speech of 17 January, when she confirmed Britain would leave the single market. In her speech, the Prime Minister reiterated that it is for the Government alone to invoke...
SFO announces Rolls Royce DPA
SFO has announced it has entered into a a deferred prosecution agreement (DPA) with Rolls-Royce, following a 4 year investigation. The penalty is the highest yet in the UK against a company for criminal conduct, and the...
Brexit Committee calls for Parliamentary vote on Brexit deal
The first report of the committee on exiting the EU calls for the Government to publish its Brexit plan by mid-February, and says that plan should set out the Government’s position on membership of the single...
House of Commons looks at legislating for Brexit
The House of Commons Library has published a report looking at how many EU laws are directly applicable in the UK (around 5,000), and will therefore cease to apply in the UK once the European Communities Act 1972 is...
MoJ calls for evidence on corporate economic crime
The Ministry of Justice has published a call for evidence on corporate liability for economic crime. There has been much criticism for some time of the difficulties enforcement agencies have when trying to prosecute...
ICO fines RSA for DP breach
The Information Commissioner’s Office (ICO) has issued Royal & Sun Alliance Insurance PLC (RSA) with a monetary penalty notice (£150,000) because of a serious breach of the seventh principle (the requirement...
EP unsure on MLD4 high risk list
On 9 January 2017, two Committees within the European Parliament, ECON and LIBE published a motion for a resolution (dated 13 December 2016) objecting to the proposed Delegated Regulation amending the European...
FCA’s Future Mission: key themes from feedback
FCA has published initial feedback from the consultation process into its proposed mission statement. Key themes include: a desire for a clearer rationale for FCA decisions, and what FCA chooses to do and not to do;...
Treasury Committee concerned on cybersecurity
: Andrew Tyrie has written to the National Cyber Security Centre, expressing concern that there is no single point of responsibility for cyber risk in the financial services sector. The Committee thinks there needs to...
ESMA publishes MAR FAQs
ESMA has published an updated questions and answers document on MAR. New questions cover whether transactions should be aggregated for the purpose of the trigger for the notification obligation for PDMRs and their...
EU publishes MLD 5 negotiating mandate
The Presidency of the Council of the EU has published the negotiating mandate it hopes will progress MLD 5 negotiations. It wants the incoming Presidency to start talks with the European Parliament on key changes to MLD...
Article: FinTech firms navigate regulatory uncertainty
Current laws and regulations weren’t designed with FinTech or InsurTech in mind, so startups must – on top of their business proposition – implement appropriate compliance procedures and grapple with legal uncertainties...
LSB calls for data on digital
LSB is calling for evidence as part of its Standards Development project to look at firms’ digital capabilities. It asks: What are the main challenges faced when developing products and services for digital...