FCA has fined Gatehouse Bank £1.5m (after a 30% reduction for early settlement) for significant weaknesses in its AML controls which lasted for 3 years to July 2017. It found the bank generally failed to conduct...
Category - Financial Crime Prevention
Emma RadmoreFSMB Committee stage scheduled for 19 October
An update to the Parliament website shows the Committee stage for the Financial Services and Markets Bill will start on 19 October. After the line by line debate is complete, the Bill will be republished for report...
FATF publishes timetable for 4th round evaluations
FATF has published its procedures for the fourth round of mutual evaluations. The procedures include details of the notice periods and the manner in which the evaluations will take place, and the publication of reports...
FSB consults on regulation of crypto assets and markets
The Financial Stability Board has published a consultative report including some high level recommendations aimed at promoting consistent and comprehensive treatment of crypto-asset activities and markets. The 9...
TI says LLPs abused “on industrial scale” for financial crime
A Transparency International report claims that 14% of all LLPs ever incorporated (21,000) show money laundering red flags. Its report comes as the Economic Crime and Corporate Transparency Bill nears its parliamentary...
FCA fines and bans for market abuse reporting failures
FCA has fined Sigma Broking Limited and has banned and fined its former directors. The firm failed to make reports, or accurate reports, on 56,000 CfDs over a period of just over 18 months to August 2016, and also...
Market Watch focuses on transaction reporting
The latest edition of Market Watch looks at how many firms have accessed FCA’s Market Data Processor Entity Portal over the past 4 years – and there has been a gradual increase. There has however been a...
New Russian sanctions in place from 30 September
In response to the illegal annexation of 4 Ukrainian regions, the Government has imposed sweeping new sanctions the effect of which is to deny Russia access to key services including IT consultancy, architectural...
PSR sets out APP scam protection proposals
PSR is consulting on how to increase consumer support for APP scams. Following the initiatives it has taken to date, the new measures will: require reimbursement in all but exceptional cases; improve and make...
OFSI fines for sanctions breach
OFSI has published details of a monetary penalty imposed on Hong Kong International Wine and Spirits Competition Ltd. The fine, of £30,000 related to 3 payments and 78 wine bottles the company had received from a...
Economic Crime and Corporate Transparency Bill heralds Companies House reform
The Economic Crime and Corporate Transparency Bill has started its parliamentary passage. The Bill aims to crack down on money laundering and other crimes, primarily through: the long-promised Companies House reforms...
FOS publishes latest complaints data
FOS has published its latest quarterly data on complaints in relation to financial products. The data covers the period of April to June 2022, and can be accessed in full as a spreadsheet. Over the period, the average...
FIN. TeamFCA speaks on “force multiplier effect”
Sarah Pritchard, Executive Director of Markets at the FCA has recently given a speech on how the “force multiplier effect” is key to fighting financial crime. She said the role of those in the first line of...
OFSI publishes annual frozen asset request form
OFSI has published the annual frozen assets reporting notice, template and accompanying guidance notes. All persons who hold or control funds or economic resources belonging to a designated person should complete the...
OFSI updates sanctions guidance
OFSI has published a blog on who needs to make reports to it in relation to financial sanctions issues and how, and also also updated its general guidance on financial sanctions to give greater guidance on reporting.
Wolfsberg Group publishes transaction monitoring RFI guidance
The Wolfsberg Group has published a guidance paper looking at requests for information as used in AML transaction monitoring. RFIs are used when correspondents or other PSPs are looking to understand transactions that...
FCA fines for failure to have trade surveillance requirements
FCA has imposed a fine of over £12.5m on Citigroup Global Markets Limited, for failing to comply with MAR trade surveillance requirements. MAR introduced a requirement from 2016 to monitor orders and trades to detect...
PRA removes deposit taking permission from Sonali Bank
PRA has varied Sonali Bank’s permission so that it no longer has permission to accept deposits. The decision, published in a second supervisory notice, states that the firm is failing to meet the threshold...
JMLSG updates Motor Finance guidance
JMLSG has published revisions to its sectoral guidance on Motor Finance. It has submitted the new guidance to Treasury for approval. The additions to the existing guidance comprise of an FLA industry standard annex...
Companies House writes to overseas entities on register entries
Companies House has written to overseas entities who already own or leave property or land in the UK and who must register information with Companies House by the end of January 2023. Any entity that does not comply can...
FCA updates CiC requirements for crypto controllers
FCA has updated its change in control pages on its website to reflect new forms for controllers of registered cryptoasset firms. From today (11 August), any person deciding to acquire 25% of more control of a registered...
FCA publishes “alternatives” supervisory letter
FCA has published its supervisory strategy letter for “alternatives” – that is firms that are predominantly active in the alternative investment sector. Although the letter, as usual, is addressed to...
NCA and OFSI issue Russian sanction enablers alert
NCA and OFSI have issued a “red alert” sharing information on some of the common techniques that Designated Persons under Russian sanctions and their UK enablers are suspected to be using to evade sanctions...
FCA fines former NED for inside information disclosure
FCA has fined Sir Christopher Gent, former NED of ConvaTec Group, £80,000 for disclosing inside information to individuals in senior positions in two of the company’s major shareholders in advance of its...
Overseas Entities Registration Regulations made
The Register of Overseas Entities (Delivery, Protection and Trust Services) Regulations 2022 were made on 25 July. They specifically: cater for electronic delivery of documents required; list circumstances in which the...
MLR amendments made
The Money Laundering and Terrorist Financing (Amendment)(No 2) Regulations 2022 were made on 21 July. The changes implement Treasury’s conclusions following its consultation and will mainly take effect from 1...
FATF looks at DP, technology and private sector information sharing
FATF has published a report looking at how collaborative analysis and ways of bringing data together can help financial institutions to build a clearer picture of the large and complex puzzle of transactions of which...
PSR annual report focuses on “protecting people”
On the 19th July the PSR released its annual report for 2021/2022, and outlined how it has helped the public in the past year. During the year, the PSR: imposed its biggest ever fine (for cartel behaviour in the prepaid...
FCA publishes Annual Report
FCA has published its Annual Report and supporting papers. It highlighted: how nearly 600,000 people are paying less in interest and charges on credit card debt following rule changes; how further rule changes have...
FCA fines failed firm for financial crime failings
FCA has fined the TJM Partnership, which is now in liquidation, £2,038,700 for financial crime compliance failings in cum-ex trading business. This is the third fine in this area, and the largest. FCA found the firm...
FCA responds to Treasury Committee on responsibilities regarding financial sanctions
FCA has written to the Treasury Committee to respond to questions regarding its financial sanctions responsibilities. FCA confirmed that its role was to ensure that regulated firms have appropriate systems and controls...
Harshil PatelECB speaks on using tech to tackle financial crime
Elizabeth McCaul, Member of the Supervisory Board of the ECB, has delivered a speech on how technology (particularly AI) can be used in the fight against financial crime. Ms McCaul discussed the relationship between...
Emma RadmoreUpper Tribunal finds failings with crypto trader’s AML compliance
The Upper Tribunal (Tax and Chancery Chamber) has published its decision in Vladimir Consulting Ltd (VCL) v Financial Conduct Authority, in which it has analysed whether VCL’s approach to business was compliant...
Gibraltar added to High Risk Third Countries from 11 July
The latest Government advisory on High Risk Third Countries has added Gibraltar to the list with effect from 11 July, and removed Malta. The UK list continues to mirror the FATF list. The full list is now Albania...
EU reaches agreement on crypto measures
The EU has reached agreement on critical elements of crypto-asset regulation. The European Parliament and the European Council have reached a provisional deal new legislation aiming to ensure that crypto transfers can...
Joint Statement issued by the Russian Elites, Proxies, and Oligarchs Task Force
The Russian Elites, Proxies, and Oligarchs (REPO) Task Force has released a joint statement outlining how they have been able to isolate sanctioned Russians by freezing, seizure, forfeiture and/or disposal of assets...
UK sanctions more Russian oligarchs
New sanctions under the Russian regime designate more individuals within Vladimir Putin’s inner circle, including Russia’s second richest man, and a relation to Putin’s who is president of a large...
OFSI fines company for employee flight sanctions breach
OFSI has updated its table of monetary penalties for sanctions breaches. The table now reflects a fine on Tracerco Limited, a company operating in the energy sector, which has been fined £15,000 for making funds...
FCA fines Ghana International Bank for correspondent banking DD failings
FCA has fined Ghana International Bank nearly £6m for failings in its financial crime prevention controls in respect of its correspondent banking business. It found that, for a 5 year period to the end of 2016, it did...
FCA fines JLT for more bribery control failings
FCA has levied a second fine on insurance broker JLT Speciality Ltd for financial crime control failings. The £7,881,700 fine follows a previous fine of nearly £2m in December 2013 for similar failings. Following...
FCA seeks retrial in insider dealing case
Following the Court’s decision to discharge the jury after they were unable to reach a verdict following an 8-week trial, the FCA has announced that it will pursue a retrial of Stuart Bayes and Jonathan Swann for...
Outcomes of FATF plenary
The latest FATF Plenary meeting took place from 14-17 June. At it, FATF agreed to severely limit the role of Russia and its influence in FATF; approved a report to help the real estate sector better detect and prevent...
FCA update on market abuse and manipulation
Tackling market abuse is one of the FCA’s strategic priorities. Given recent press reports about the FCA’s approach, the FCA outlined the work it does to tackle insider trading and manipulation and to warn...
Treasury Committee to question OFSI on sanctions effectiveness
The Treasury Committee is to question OFSI as part of its inquiry into effective economic sanctions on Russia. The session will take place on 22 June and is likely to include discussion on the challenges of implementing...
NCA updates SAR Glossary codes
NCA has published updated guidance on SAR Glossary Codes and Reporting Routes. The booklet follows the familiar form, providing: a checklist aimed at establishing whether the circumstances require immediate attention...
Treasury feeds back on MLR changes
Treasury has published the feedback on its consultation from last summer on amendments to the MLRs. It has now analysed the responses to the consultation, made the legislative changes, and most of the changes will take...
EBA publishes MLRO role guidelines
EBA has published its final guidelines on the role and responsibilities of the officer in charge of compliance with AML and CTF and of the management body of credit and financial institutions. As ever, the Guidelines...
Law Commission sets out proposals for corporate criminal liability reform
Following a request by the government to carry out a review of the law on corporate criminal liability, the Law Commission has now published ten options for reforming how companies are convicted of criminal offences...
Post-legislative assessment of the Fraud Act 2006
The Ministry of Justice has published a memorandum on the Fraud Act 2006 which provides an updated post-legislative assessment of the Act for submission to the House of Lords Select Committee in light of rising digital...
FATF publishes UK follow up report
FATF has carried out its latest assessment of the UK’s compliance with its Recommendations, following the 2018 report. FATF says the report from the UK on the actions taken since the last evaluation has enabled it...
OFSI updates sanctions enforcement guidance
OFSI has updated its guidance on sanctions enforcement and monetary penalties, which will take effect from 15 June 2022. The changes reflect the amendments to enforcement powers created in the Economic Crime...
LMA publishes useful Counsel’s advice on Russian Sanctions
The Lloyds Market Association (LMA) has published advice received from Counsel on coverage following the recent introduction of sanctions against Russia. The questions covered included whether insurance cover can be...
Privy Council declines to extend the Quincecare duty to protect beneficial owners of funds
The Privy Council has handed down its decision in Royal Bank of Scotland International LLP (Bank) v JP SPC 4 and another [2022] UKPC 18, in which it confirmed that as a matter of law, banks do not owe a duty of care...
FRC disciplines KPMG and Partner over Rolls Royce audit
The Financial Reporting Council has issued its final decision notice after its investigation into KPMG Audit plc and the Audit Engagement Partner, Anthony Sykes, in respect of the statutory audit of Rolls-Royce Group...
FCA speaks on regulating finance in the UK
Charles Randell, FCA and PSR Chair, has delivered a speech on regulating finance for the whole of the UK. Highlights include: Importance of partnerships and policy coherence – the FCA recognises the continued importance...
FCA asks for reports of sanctions evasions
A new page on the FCA website asks for reports of sanctions evasion by firms on any of FCA’s registered or by companies with UK listed securities. The new page gives details of how: individuals can report as...
FCA highlights the risks of investing in crypto
The FCA has issued a statement following some recent social media posts regarding cryptoassets and NFTs. Whilst it cannot comment on individual products, it has warned consumers that there are no consumer protections...
Queen’s Speech 2022 – FS elements
The Queen’s Speech 2022 outlined the government’s legislative priorities for the next parliamentary session. The measures announced include two bills of particular interest to financial services...
Government sets out approach to APP scam reimbursements
HM Treasury has published a policy paper outlining how the government and PSR intend to improve the reimbursement of APP scam victims. The government intends to legislate in the Financial Services and Markets Bill to...
FCA launches latest “scam smart” campaign
FCA has launched its latest “scam smart” campaign with case studies on increasingly sophisticated scams including those involving screen sharing which enabled scammers to take £48,000 from a consumer’s...
Treasury Committee publishes response to fraud, scams and economic crime report
The Treasury Committee has published responses from the Government, FCA and PSR to its report on economic crime. The key message is that the Government is creating a second Economic Crime Plan which it will publish...
FCA speech on critical issues in financial regulation
On 26 April 2022, the FCA published a speech given by Nikhil Rathi, FCA Chief Executive, on the FCA’s view of critical issues in financial regulation. Mr Rathi sets out the challenges and opportunities confronting...
EU Council publishes note on proposal for regulation on transfer of funds and cryptoassets
On 21 April 2022, the Council of the EU has published a note to commence trilogues with a three-column table summarising and comparing the European Commission’s proposals, the European Parliament and Council’s...
FCA launches Early and High Growth Oversight initiative
Following a successful pilot, FCA are expanding their Early and High Growth Oversight initiative, to provide targeted support for 300 newly authorised firms by the end of 2023. FCA will provide enhanced supervision for...
FCA calls on challenger banks to improve financial crime controls
FCA has published a thematic review on how challenger banks assess financial crime risk, and has highlighted significant failings. Among the findings of the review, which it carried out during 2021, focussing on banks...
FATF reports on effectiveness and compliance with FATF standards
FATF has published a report based on data from mutual evaluation reports since 2013, which finds that overall countries have made huge progress. Many have enacted a range of laws and regulations, with 76% of countries...
FCA talks of a “digital regulator”
Jessica Rusu, FCA’s Chief Data, Information and Intelligence Officer, has spoken on how FCA is building its digital regulatory future. Its work will focus on fostering innovation, being intelligence led and...
MEPs vote on draft crypto legislation
MEPs from ECON and the Committee on Civil Liberties have voted to adopt their position on draft crypto legislation which forms part of the EU’s wider package of measures aimed at strengthening AML/CFT rules in the...
Wolfsberg Group publishes digital risk management guidance
The Wolfsberg Group has published guidance on Digital Customer Lifecycle Risk Management. The guidance looks at how non face-to-face customer interaction could be considered a standard or even lower-risk channel for a...
New high-risk jurisdictions list in force from 29 March
The latest amendment Regulations setting out high-risk countries for ML/TF purposes took effect on 29 March. The list is: 1. Albania 2. Barbados 3. Burkina Faso 4. Cambodia 5. Cayman Islands 6. Democratic People’s...
Regulators remind firms of crypto risks
PRA and FCA have written to firms reminding them of their obligations when interacting with or exposed to crypto-assets and related services. FCA reminds firms that crypto can offer benefits but also increased risk to...
Update on Overseas Entities Register
Read our updated article on the creation of the Overseas Entities Register under the Economic Crime (Transparency and Enforcement) Act 2022. The article highlights that the grace period given to overseas entities to...
EBA finds AML and CFT supervision of banks is improving
EBA published the findings from its assessment of competent authorities’ approaches to AML and CFT supervision of banks. Since the EBA started its reviews in 2019 and strengthened its AML/CFT guidance, national...
EP reports on crypto Regulation proposal
The European Parliament has published its report on the proposal for a Regulation of crypto asset service providers. A key change is to specify that any person providing any relevant services to EU citizens must both...
Treasury updates AML advisory
The latest AML advisory to update the list of high risk third countries has been updated to reflect FATF’s latest list. The list now comprises Albania, Barbados, Burkina Faso, Cambodia, Cayman Islands, DPRK...
Government introduces Online Safety Bill to parliament
The government has agreed to make changes to the Online Safety Bill and has now introduced the Bill into the Commons. The government has also responded to the Joint Committee on draft Online Safety Bill’s report...
FCA starts thinking about “side pockets” for Russian-exposed funds
FCA has started discussions in advance of a formal consultation on options that would allow UK authorised retail funds to make exceptional use of “side pockets” so they can separate Russian and Belarussian...
New rules on cryptocurrencies in the EU
MEPs have agreed on draft rules on supervision, consumer protection and environmental sustainability of crypto-assets, including cryptocurrencies such as bitcoins. For those issuing and trading crypto-assets, the new...
Economic Crime Act gets Royal Assent
The Economic Crime (Transparency and Enforcement) Act 2022 got Royal Assent on 15 March only 14 days after its introduction into Parliament. As noted in previous posts and articles, the main focus of the Act is: the...
Joint Statement from UK Financial Regulatory Authorities: Cryptoassets
On 11 March 2022, OFSI, the FCA and the Bank of England issued a joint statement on sanctions and the cryptoasset sector. The statement comes amid the conflict between Russia and Ukraine to ensure all firms are...
Treasury and FCA on investing in Russia
The Chancellor has called on all UK firms to think very carefully about any investments that might support the Putin regime, and has welcomed commitments to divest away from Russian assets. The Government recognises...
FCA warns on illegal crypto ATMs
FCA has warned operators of crypto ATMs that they must shut down their machines. Any firm operating a crypto ATM in the UK must be registered under the MLRs, but no firm that does operate one has yet been approved by...
FCA creates Ukraine-focussed webpage
FCA has created a new webpage to bring together its various resources and publications relating to the Russian invasion of Ukraine. It includes FCA’s notices about the effect of the invasion on financial markets...
AML Levy Regulations made
The Economic Crime (Anti-Money Laundering) Levy Regulations have been made and will take effect on 1 April. The Regulations: specify the FCA, Gambling Commission or HMRC as appropriate as the collection agencies; and...
Sanctions and Economic Crime update 11 March
Over the last couple of days: OFSI has published a blog on the evolving Russian sanctions, including calling out the intent of the Economic Crime bill to introduce a strict civil liability test, and confirming that it...
Government launches consultation on online advertising
The government has launched its Online Advertising Programme consultation which will review the regulatory framework of paid-for online advertising in a bid to improve transparency and accountability and tackle harmful...
Fraud Act Committee launches call for evidence
The House of Lords Committee on the Fraud Act 2006 and Digital Fraud has launched a call for evidence on what measures should be taken to tackle the increase in fraud cases. In particular, the Committee would like to...
Corporate transparency and Companies House reforms
Read our article on the BEIS White Paper on the plans to enhance Companies House’s role and increase transparency of UK corporate entities.
Suzanne GadoEconomic Crime Bill now in Lords as Russian sanctions further updated
The Economic Crime (Transparency and Enforcement) Bill has started its passage through the House of Lords, and the Bill as brought from the Commons has been released. Meanwhile, the Russia sanctions regulations have...
FCA gives guidance on operational and cyber resilience in light of invasion of Ukraine
FCA’s new webpage looks at points firms should consider about their operational and cyber resilience following the Russian invasion of Ukraine. It recommends that firms: review the National Cyber Security Centre...
Economic Crime Bill nears end of Commons stage
The Economic Crime (Transparency and Enforcement) Bill is nearing the end of its stage in the Commons, and is at 3rd reading. 47 pages worth of amendments have been tabled to date.
OFSI updates sanctions guidance for Russia
OFSI has published an update to its financial sanctions guidance, specifically addressing the range of sanctions now introduced against Russia. The guidance explains the scope of the sanctions and available licensing...
FATF updates recommendation 24
At FATF’s latest meeting, it adopted amendments to Recommendation 24 and its interpretive note. The recommendation now requires a multi-pronged approach to the collection of beneficial ownership information...
Sanctions and economic crime update 4 March
Late on 3 March and on 4 March: FCDO and OFSI confirmed the extension of sanctions to Russian oligarchs Alisher Usmanov and Igor Shuvalov; and BEIS published an updated factsheet on the register of overseas entities;...
Read our article on overseas entities register
We have written an article giving more detail on the proposals in the Economic Crime Bill finally to implement the registry of beneficial ownership information for foreign entities holding property in the UK, and the...
FCA publishes Consumer investments data review
The FCA has published its third Consumer investments data review. The review provides an overview of FCA’s work to protect consumers from investment harm between April and September 2021. This follows FCA’s...
UK to target provision of insurance to Russian companies with next sanctions round
The new round of UK economic sanctions will prevent Russian companies in the aviation and space industry from accessing the UK insurance sector. The measures will apply to insurance and reinsurance services accessed...
FCA notes impact of invasion of Ukraine on financial markets
FCA has noted the multiple impacts that financial markets will feel following the Russian invasion of Ukraine itself and the wide range of sanctions imposed by numerous jurisdictions on Russia, Russian individuals and...
Transparency International comments on economic crime measures
Transparency International has welcomed that publication of the Economic Crime Bill as an opportunity to be a major boost to Britain’s defences against illicit wealth. However, there are some things it thinks...
Finance Act 2022 gets Royal Assent
The Finance Act 2022 has achieved Royal Assent, and includes the economic crime levy. It sets out: the powers of FCA, HMRC and the Gambling Commission to collect it; how to assess whether a person is subject to the...