A new “Office of Trade Sanctions Implementation” will act to strengthen enforcement on companies that are evading Russian sanctions. Following recent announcements, one of its jobs will be to look at...
Category - Financial Crime Prevention
Emma RadmoreNCA warns of circumvention tactics on Russian sanctions
NCA has issued an alert warning financial and other businesses that Russia is trying to procure UK sanctioned goods through intermediary countries, but using complex supply chains and routes. The UK, with the US, EU and...
PSR publishes cycle 2 APP fraud reporting guidance
PSR has published its finalised reporting guidance for firms required to provide it with APP scam data, the second batch of which will cover the calendar year 2023. This cycle will be a 12 month report, rather than the...
IRSG highlights importance of transparent beneficial ownership
The International Regulatory Strategy group has published a report which makes 7 recommendations around how a globally transparent and effective beneficial ownership regime can be achieved. The recommendations focus on...
PSR speaks on preparing for APP scam reimbursement
Chris Hemsley has spoken of the preparatory work that both sending and receiving PSPs should be doing ahead of the mandatory reimbursement requirement for APP frauds coming into effect next year. The new rules will mean...
Treasury updates AML list of high-risk countries
Treasury has made the second set of amendments this year to its list of high-risk countries for AML/CTF purposes. The updated schedule was made on 4 December and took effect on 5 December. The changes mean that...
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...
FIN. TeamOFSI 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...
SAR reporter booklet highlights recent cases
The November edition of NCA’s SARs Reporter Booklet summarises the outcome of several DAMLs which led to further enforcement action for fraud, money laundering and in raising safeguarding concerns about a...
Basel Committee publishes discussion paper on digital fraud
The Basel Committee on Banking Supervision has issued a discussion paper on digital fraud and banking. The paper is a high-level assessment of the supervisory and financial stability implications of digital fraud for...
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...
FCA portfolio letter to wealth managers and stockbrokers
FCA has published its Dear CEO letter to wealth management and stockbroker firms setting out its supervisory priorities and expectations for the sector. The letter focuses on financial crime prevention and Consumer Duty...
FCA calls for better treatment of fraud victims
FCA has carried out a review of firms’ fraud controls and complaints handling, and is disappointed with the way some firms support fraud victims. While it did find some examples of good practice, it found many...
PSR releases first APP scam performance figures
PSR has released figures showing how the largest 14 banking groups performed during 2022 in tackling APP scams and reimbursing victims. The data covers 95% of payments made via Faster Payments. PSR had collected data...
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...
Lords gives way on FTP… and Bill gets Royal Assent
The saga of the debate on scope of the proposed new failure to prevent fraud offence. The Commons (Kevin Hollinrake, Under-Secretary of State for Business and Trade) urged both houses not to “risk the safe...
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.
Wolfsberg Group updates payment transparency standards
The Wolfsberg Group has replaced its Payment Transparency Standards originally drafted in 2017 with a new set of standards designed to reflect the operational and financial crime risks posed by innovation in payment...
FCA publishes money mule prevention review
FCA has published the findings from its views of the adequacy of PSP systems and controls against money mule activity. As now seems to be standard, it found that some firms are using innovative solutions such as facial...
Lords continue to battle on FTP fraud
The ping pong between the Houses on the scope of the proposed failure to prevent fraud offence continues. In the debate on 18 October, the Government continued to refuse to give way on its belief that it is...
FCA updates on skilled persons reports
FCA has published the numbers of skilled persons reports commissioned in the first two quarters of 2023: From April to June it commissioned 11 reports, of which 4 related to retail investments and 3 to wholesale...
JROC welcomes OBL data collection frameworks
The Joint Regulatory Oversight Committee has welcomed the publication of two data collection frameworks by Open Banking Limited, one on levelling up availability and performance and the other on mitigating the risks of...
JMLSG finalises discrepancy reporting changes
JMLSG has published the final version of its changes to Chapter 5 of Part 1 in relation to discrepancy reporting, and has submitted them to Treasury for approval.
FCA fines Equifax £11m for cyber-security breach failings
FCA has fined Equifax Ltd for £11,164,400 for failing to manage and monitor the security of UK consumer data it had outsourced to its US parent, in breach of Principles 3, 6 and 7. In 2017, cyber-hackers caused Equifax...
Emma RadmoreSFO investigates funeral plan provider
SFO has written to authorised firms asking for information to help its criminal investigation into suspected fraud by a pre-paid funeral planner, Safe Hands Plans Limited and its parent company. Nearly 50,000 plan...
FCA stops firm from approving crypto promotions
On 10 October, FCA imposed restrictions on rebuildingsociety.com Ltd to stop it from approving crypto financial promotions. The firm, which is authorised to operate an electronic system in relation to lending, was also...
FCA updates crypto application stats
FCA has updated the statistics on applications for registration by crypto firms, and its feedback on good and poor applications. As at 1 October, it had received 326 applications since registration began in January...
FCA issues first alerts under new crypto marketing regime
FCA has issued 146 alerts about financial promotions in the first 24 hours of the new crypto marketing regime. These alerts contain the names of companies which may be illegally communicating cryptoasset promotions. The...
FCA fines broker for fin crime control failings
FCA has fined ADM Investor Services International Limited, an investment broker, nearly £6.5m for inadequate AML systems and controls. The firm’s business model made it subject to high risks of money laundering...
OFSI publishes Correspondent Banking General Licence
OFSI has published a general licence for correspondent banking payments. The licence permits certain payments to be made in respect of sanctions imposed under the Russian and Belarussian sanctions regimes. It allows...
PSR consults on FPS reimbursement Direction
PSR is consulting, as promised, on a Specific Direction on FPS participants which will underpin the faster payments reimbursement rules and will require participants to follow the rules and reimburse APP scam victims in...
UK Finance respond to ban on cold calling
UK Finance has responded to HM Treasury’s proposals to ban cold calling in financial services and is supportive of the proposals. The measures aim to protect consumers, particularly elderly and vulnerable...
FCA and CoLC launch APP scam project tool
FCA and the City of London Corporation have launched the promised APP synthetic dataset which is designed to develop products and services to minimise fraud. The dataset will allow analysis of rare patterns of behaviour...
Lords may compromise further on FTP fraud
A 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”...
FCA issues final warning on crypto promotions
FCA has published a final warning to crypto firms stressing the breadth of the definition of “financial promotion” and how it will affect crypto promotions going forwards. The communication is aimed at...
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.
UK Finance comments on account access and closure
UK Finance has commented on FCA’s report on account access and closure – noting that the main reason for account closure is not because of political beliefs or other lawfully held views, but because of...
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...
JMLSG 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.