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...
Category - Financial Crime Prevention
Emma RadmoreEP 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...
FIN. TeamFATF 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...
Laura WilesFCA 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...
Regulators publish CBEST 2022 conclusions
BoE, PRA and FCA have written to firms with the results of the 2022 CBEST stress test. In a letter to the SMF holders with responsibility for cyber, the letter aims to: inform firms of perceived weaknesses; enable...
FSMB second day of Lords’ Committee hearing
The second day of debate in the Lords’ Grand Committee consisted of a lively debate on several proposed amendments, none of which have been taken forward. Topics debated were: creating offences for abuse of...
Economic Crime and Corporate Transparency Bill goes to Lords
The Economic Crime and Corporate Transparency Bill has now completed its passage in the Commons and moved to the Lords, where it had its first reading on 30 January and is due to have its second reading on 8 February.
Failure to prevent fraud offence debated in Economic Crime Bill
A clause has been introduced for debate in the Economic Crime Bill, which is now on its third reading in Parliament, to create an offence of “failure to prevent fraud, false accounting or money laundering”...
FSM Bill Grand Committee stage starts
The first day of the Lords Grand Committee hearing on the FSM Bill took place on 25 January. There are now 6 dates scheduled in total, with sittings taking place now on 30 January, then 1, 6, 8 and 20 February. 195...
FCA feeds back on crypto applications
FCA has published its feedback on good and poor quality applications made by crypto firms under the MLRs. FCA has seen and refused so many bad quality applications it has now provided guidance to firms on what they have...
NCA publishes SARs report 2020-22
NCA has published its SARs annual report, which covers a 2 year period since it did not publish one in 2021. Key statistics are: a record over 900,000 SARs received and processed in the last financial year – 21%...
Economic Crime and Transparency Bill at Report stage
The Economic Crime and Corporate Transparency Bill has completed the Committee stage in the Commons and moves to the Report stage on 24 January. Sittings are scheduled for both 24 and 25 January.
Further FSMB amendments for Lords Grand Committee
Further amendments, and an updated running list of amendments, to the FSM Bill to be discussed in the Lords Grand Committee have been published. Among the latest additions are changes which would: remove short selling...
Treasury Committee publishes FCA information request
The Treasury Committee has published a letter sent to Nikhil Rathi on 1 December, asking for details on: total vacancies FCA has in specific areas, by grade, job and which ones require data or technology skills; how FCA...
Lords publishes FSMB amendments for Committee
The House of Lords has published a set of amendments to the FSMB for discussion in the Grand Committee, which is now scheduled to sit on 25 and 30 January and 1 February. The amendments include several amendments that...
FCA feeds back on OPBAS rulebook update
FCA has published the feedback it received on its consultation on updating the OPBAS Rulebook, and the revised rules, which took effect from 10 January 2023. FCA wanted to include a new chapter outlining OPBAS’...
FCA updates on Skilled Persons reports
FCA has published the figures for its Skilled Persons reports commissioned in the period from July to October 2022. 11 were commissioned in total, with 4 in the retail investments area, none for general insurance and...
FSMB completes second reading in Lords
The FSMB had its second reading in the Lords on 10 January. Baroness Penn, leading for the Government, summarised the importance of the Bill and its overarching aims, which she described as: implementing the outcomes...
Market Watch looks at DRSP service
Edition 72 of FCA’s Market Watch looks at the quality of service that Data Reporting Services Providers give. Given the importance of DSRPs to the functioning of wholesale markets and promoting transparency and...
FCA fines Al Rayan Bank for AML failings
FCA has fined Al Rayan Bank PLC £4m for failing to have in place proper AML controls over 2.5 years to the end of November 2017. The bank is a subsidiary of a Qatar-based Islamic bank, and provides Sharia compliant...
Stanford v HSBC – further analysis of the Quincecare duty
We reported on this judgment before Christmas. Now read our more detailed analysis of the judgment and its effects.
FCA fines Guaranty Trust Bank again for AML failings
FCA has fined Guaranty Trust Bank (UK) Ltd, the UK subsidiary of Guaranty Trust Nigeria Bank Limited, over £7.5m for AML systems and controls weaknesses spanning a period of nearly 5 years to July 2019. It had...
Treasury publishes AML and CFT supervision report
HM Treasury has published its “Anti-money laundering and countering the financing of terrorism: Supervision Report 2020-22“. The report addresses the performance of anti-money laundering (“AML“)...
Stephen WilsonSupreme Court judgment in Stanford/HSBC case looks at recoverable losses
The Supreme Court has held that, where HSBC actioned instructions that may have been part of a fraud, but which resulted in creditors being repaid, then regardless of whether it had a Quincecare duty and, if it did, had...
Onerous or essential: banks’ duties and APP fraud
Read our article by Stephen Dilley and Rasmita Roy Chowdury, looking at the history and case law relating to banks’ duties and APP fraud reimbursement.
Government raises POCA ‘exemption’ threshold
The Government has published the Proceeds of Crime (Money Laundering) (Threshold Amount) Order 2022 and an accompanying explanatory memorandum. The Order will amend section 339A of the Proceeds of Crime Act 2002...
The Edinburgh reforms – and more
See our article, summarising various FIN posts over the past week on the state of play of the FSM Bill and the Edinburgh reforms.
Latest Market Watch focuses on insider lists
FCA’s Market Watch Issue 71 concentrates on changes to advisory firms’ insider lists since the guidance FCA gave in edition 60, when it criticised firms for having unnecessarily large numbers of insiders. It...
Treasury puts in place Haiti sanctions
The Haiti (Sanctions) Regulations 2022 will take effect from 28 December, following a UN Security Council Resolution. OFSI has published guidance to accompany the Regulations which will, among other things, include on...
FCA fines Santander for AML failings
FCA has fined Santander UK plc £107.7m for serious and persistent gaps in its AML controls that related to its business banking customers. It found that over a period of nearly 5 years from the end of 2012, the banks...
“Edinburgh” reforms highlight ring-fencing, CCA and post-Brexit changes
The Chancellor has announced a set of so called “Edinburgh reforms” to the financial services regulatory framework. At an industry roundtable, he will set out plans to repeal and replace “hundreds of...
PSR updates on APP scam data
The PSR has published an update on its plan to publish data on how banks and building societies are responding to APP scams. PSR will require the 14 largest PSPs in the UK to provide 6 monthly data on APP scam...
FCA fines brokers for market abuse detection failings
FCA has fined 3 firms within the BGC and GFI group a total of £4,775,200 for failure properly to implement the MAR trade surveillance requirements, which meant there was an increased risk that the firms would not detect...
Tribunal backs FCA on crypto-refusal decision
The Upper Tribunal has published its decision made in September on an application by Moneybrain Limited. Moneybrain had created a type of cryptocurrency called BiPS tokens and had applied to FCA to be registered as a...
FSM Bill – Lords dates announced
The FSM Bill as amended after its passage through the Commons has now had its first (routine) reading in the Lords. The Lords’ second reading has been set for 10 January 2023.
FSM Bill report stage
As scheduled, the FSM Bill had its report stage on 7 December and, eventually, at nearly 7pm, the Third Reading of the Bill took place and was agreed to. The Bill now moves to the Lords. While we still await the new...
European Council agrees strengthened AML rules
The European Council has agreed its position on both an AML regulation and a new directive (AMLD6). These regulations aim to improve risk mitigation, detect criminal activity and ensure the EU’s financial system...
EBA consults on guidelines to address de-risking
EBA has opened a consultation on two new sets of guidelines which look to address the effective management of money laundering and terrorist financing risks when providing access to financial services. The aim of the...
JMLSG publishes revisions to Guidance
JMLSG has published amendments to several parts of its guidance, and has submitted the updated versions to Treasury for approval. The revisions update: Chapter 5 of Part 1 (5.5.11) to update provisions on high-risk...
FSM Bill report stage on 7 December
The FSM Bill is to have its report stage and third reading in Parliament on 7 December, after receiving the Bill with amendments from the Public Bills Committee. It is possible for Parliament to make amendments at...
FCA fines JBI for breaches of Principle
FCA has fined Julius Baer International £18,022,500 for breaches of Principles 1, 3 and 11 at various times between 2007 and 2014. It has also decided to ban 3 individuals – all of whom have taken their case to...
EBA finalises remote onboarding guidelines
EBA has published its final guidelines on the steps credit and financial institutions should take to ensure safe and effective remote customer onboarding. The guidelines include: expectations for policies and procedures...
Emma RadmoreHMRC updates MSB guidance
HMRC has published updated guidance for MSBs on understanding risks and taking action. It confirms that MSBs are seen as attractive vehicles for criminals and gives examples of how MSBs have been used for money...
FCA publicly censures former Sonali Bank CEO
FCA has at last issued its final notice which publicly censures Mohammed Ataur Rahman Prodhan, former CEO of Sonali Bank UK. FCA had already taken regulatory action against both the bank and its MLRO in relation to AML...
LSB and PSR sign MoU
The LSB and PSR have signed and published a memorandum of understanding. setting out how the bodies will co-operate and communicate. The accompanying press release note who LSB champions the CRM Code and wants to work...
FCA reacts to FTX failure
FCA has noted that UK customers of FTX may be alarmed following its provisional liquidation in the Bahamas and filing for bankruptcy in the US. It had previously warned customers that FTX is not regulated in the UK and...
Lords Committee disappointed with UK fraud response
The House of Lords Fraud Act 2006 and Digital Fraud Committee has published a report called “fighting fraud: breaking the chain”, which expresses its disappointment at how the UK is reacting to the...
Final day of FSMB debate published
In the morning and afternoon of the final day of the Public Bills Committee debate on the FSM Bill, the remaining tabled new clauses were discussed: that the Chair of the PSR should be a member of the FCA board: this...
LSB reports on progress of CRM code in tackling APP scams
The LSB has published a review of the progress that has been made by signatories to the Contingent Reimbursement Model Code (CRM Code) in tackling APP scams. The LSB concluded that the firms which have signed up to the...
Andrew Griffith letters on FSMB
The House of Commons has published a letter from Andrew Griffith on the FSM Bill dated 10 October to Tulip Siddiq and Abena Oppong-Asare. The letter followed the second reading of the Bill and addresses: the...
FCA prosecutes individuals for investment fraud
Following FCA application, there will be a trial of 4 defendants in February 2023 for alleged investment fraud. FCA alleges the 4 individuals were involved with a London-based company called Bespoke Markets Group...
OFSI updates Russian sanctions guidance
The FCDO, OFSI and the ECJU have updated its guidance on the scope of the sanctions against Russia and when a licence might be available. The update caters for the most recent regulations (Amendment number 15), which...
Economic Crime and Corporate Transparency Bill continues Committee stage
The Economic Crime and Corporate Transparency Bill has had its 3rd, 4th and 5th sittings in the Public Bill Committee. It heard evidence from several regulators, industry organisations, financial institutions and...
Wolfsberg Correspondent Banking Principles updated
The Wolfsberg Group has published its finalised updated financial crime principles for correspondent banking. The update from the 2014 version: looks at the differences between correspondent relationships and...
Economic Crime and Corporate Transparency Bill starts Committee stage
The Economic Crime and Corporate Transparency Bill has started its Committee stage in Parliament. On 25 October, it heard from a number of witnesses including UK Finance and the BVCA, the NCA and Companies House. The...
Highlights of FSMB debates from 25 October
The 3rd and 4th sittings of the Public Bill Committee debate on the FSM Bill took place on 25 October. After the evidence sessions from witnesses on 19 October, the line-by-line scrutiny of the Bill has now started...
FATF consults on BO guidance
FTAF is consulting on updates to its guidance on Recommendation 24, following the amendments to the Recommendation that it adopted in March. The draft guidance explains the purpose of gathering beneficial ownership...
Court finds mortgage adviser had no duty to investigate underlying investment
The High Court has ruled on a case brought by investment fraud victims in a clarification of mortgage advisers’ duties. The judgment in Taylor & Anor v Legal and General Partnership Services Ltd [2022] EWHC...
Further FSMB revisions released
Parliament has published the latest raft of proposed amendments to the FSM Bill. These include: a change to the very first sub-clause, replacing the revocation of the EU and EU-derived legislation in the schedule so...
Call for evidence on Economic Crime Bill
The Public Bill Committee has invited written evidence on the Economic Crime and Corporate Transparency Bill, which is due to start its scrutiny in the Public Bill Committee on 25 October, and to conclude by 24 November...
ML threshold amount to be increased to £1000
A draft statutory instrument has proposed the increase of the “threshold amount” above which banks suspicious of money laundering cannot deal without appropriate consent from the current £250 to £1000. The...
OFSI and OFCA announce enhanced partnership
OFSI and OFAC held a multi-day technical exchange designed to aid collaboration between the agencies in future. In practice, this means that OFAC and OFSI officials will more often exchange best practices and pool...
FSMB Committee stage timetable published
Following the announcement that the Committee stage in the Commons will begin on 19 October, a timetable for the sessions has now been published. Key witnesses scheduled to appear on that day include BoE, PRA, FCA and...