SYSC326 - News (2024)

News (2024)

Links to articles and announcements on financial crime.

2024 2023 2022 2021 2020 2019

FCA - Business Plan 2024/25
19-03-24 - The Financial Conduct Authority (FCA) published its Business Plan for 2024/25 setting out the focus of its activities for next 12 months, aligned to: (i) reducing and preventing financial crime; (ii) putting consumers’ needs first; and (iii) strengthening the UK’s position in global wholesale markets. From a financial crime perspective, the FCA intends to increase investment in systems to use intelligence and data more effectively within its financial crime work, to target higher risk firms and activities. The regulator will also continue using its powers to disrupt, pursue and sanction those committing and enabling financial crime, with a tool set that includes proactive assessments of anti-money laundering systems and controls for those firms deemed higher risk.

FCA - FIN074 returns – who needs to complete and why
18-03-24 - The Financial Conduct Authority (FCA) published guidance on FIN074 returns, linked to an Economic Crime (Anti-Money Laundering) Levy chargeable to entities regulated for AML purposes. The amount payable will be determined by reference to a firm's size based on UK revenue generated in an accounting year.

FATF - Guidance on Beneficial Ownership and Transparency of Legal Arrangements
11-03-24 - The Financial Action Task Force (FATF) leads global action to tackle money laundering, terrorist and proliferation financing. The FATF researches how money is laundered and terrorism is funded, promotes global standards to mitigate the risks, and assesses whether countries are taking effective action. FATF Recommendations set out a framework of measures which countries should implement in order to combat money laundering and terrorist financing, as well as the financing of proliferation of weapons of mass destruction. Following February 2023 revisions to FATF Recommendation 25 on Beneficial ownership and transparency of legal arrangements, the FATF has updated its risk-based guidance for this Recommendation.

HMT - Improving the effectiveness of the Money Laundering Regulations
11-03-24 - HM Treasury published a consultation on improving the effectiveness of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR), which place requirements onto a range of businesses to identify and prevent money laundering and terrorist financing. The consultation covers four core themes: (i) Making customer due diligence more proportionate and effective; (ii) Strengthening system coordination; (iii) Providing clarity on scope of the MLRs; and (iv) Reforming registration requirements for the Trust Registration Service. In parallel, HM Treasury is also running a survey on the cost of compliance with the MLRs, to better understand how regulated businesses comply with the regulations and to assess the impact of future changes to the MLRs. The closing date for responses to be submitted is 9 June 2024.

HMRC - Economic Crime Levy: increased charges for very large entities (Policy Paper)
06-03-24 - HM Revenue & Customs (HMRC) published a tax information and impact note about an increase to the Economic Crime Levy for entities with a UK revenue of more than £1 billion each year. This measure increases the amount charged under the Economic Crime (Anti-Money Laundering) Levy from tax year 2024 to 2025 onwards, impacting entities that are both: (i) regulated for anti-money laundering purposes; and (ii) have UK revenue over £1 billion each year. The amount charged for these entities will increase from £250,000 to £500,000.

FCA - Action needed in response to common control failings identified in anti-money laundering frameworks
05-03-24 - The Financial Conduct Authority (FCA) issued a Dear CEO letter to [Annex I] firms, emphasising the importance of firms having appropriate policies, controls and procedures in place to reduce and prevent money laundering, terrorist financing and proliferation financing (i.e. “Financial Crime”). The letter identifies common weaknesses observed in Annex I firms in the areas of: (a) Business Model – discrepancies between firms’ registered and actual activities, and lack of Financial Crime controls to keep pace with business growth; (b) Risk Assessment – weaknesses in Business Wide Risk Assessments and Customer Risk Assessments; (c) Due Diligence, Ongoing Monitoring and Policies and Procedures – lack of detail in policies creating ambiguity around actions staff should take to comply with obligations under the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017; and (d) Governance, Management Information and Training – lack of resources for Financial Crime, inadequate Financial Crime training and absence of a clear audit trail for Financial Crime related decision-making. The FCA expects Annex I firms to complete a gap analysis against the common weaknesses identified, within six months of receipt of the Dear CEO letter.

FCA - Cryptoasset AML / CTF regime: feedback on good and poor quality applications
04-03-24 - The Financial Conduct Authority (FCA) updated its feedback summary on good and poor quality applications made under money laundering regulations. UK cryptoasset businesses should take note of feedback content when preparing an application for registration.

Gov.UK - Economic Crime and Corporate Transparency Act 2023: Factsheets
01-03-24 - UK Government updated the factsheet library which provides details of different measures contained in the Economic Crime and Corporate Transparency Act. Additional factsheets cover: limited partnerships, the impact of corporate transparency reforms on limited liability partnerships, civil sanctions and offences relating to reform of Companies House and limited partnerships, and beneficial ownership.

HMT - Are the UK’s financial sanctions on Russia working?
29-02-24 - In the week following the second anniversary of Russia’s illegal invasion of Ukraine, the Treasury Committee is launching a new inquiry into whether the UK’s programme of economic sanctions is having the desired effect - to hamper Putin’s ability to fund Russia’s armed forces.

FMSB - Transparency Draft of Standard for Client Onboarding: Documentation and Processes
28-02-24 - The Financial Markets Standards Board (FMSB) published a Transparency Draft applicable to firms when onboarding or reviewing client files under the UK requirements for Know Your Customer (KYC) and AML. The Standard aims to improve the client experience, harmonise the documents required from clients, and also codify elements of best practice in the interaction between clients and onboarding firms. The proposal does not impact onboarding firms’ risk assessment of a client, its connected parties, or any of its attributes. Neither is the proposal intended to modify an onboarding firm’s tolerance for whom they ultimately wish or do not wish to take on as a client. The Documentation Requirements are intended only to apply where Simplified or Standard Due Diligence is deemed sufficient.

Gov.UK - Deter, disrupt and demonstrate – UK sanctions strategy
22-02-24 - The UK Government published its first Sanctions Strategy. The strategy addresses how the UK uses sanctions as a foreign and security policy tool. It sets out the cross-government architecture to deliver sanctions, the partnerships developed with the private sector, NGOs, and international partners, and the steps the UK is taking to strengthen sanctions implementation and enforcement.

HMT - Money Laundering Advisory Notice: High Risk Third Countries
26-02-24 - On 23 February 2024, the Financial Action Task Force (FATF) published an update to its lists of jurisdictions identified as having strategic deficiencies in their AML/CTF regimes, of ‘Jurisdictions Under Increased Monitoring’ and ‘High-Risk Jurisdictions subject to a Call for Action’. In response to the FATF statement, HM Treasury advised firms to consider a list of jurisdictions considered High-Risk Third Countries (HRTC), as defined by Regulation 33 of The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017; which requires the UK regulated sector to apply enhanced customer due diligence in relation to HRTCs.

UK.Gov - Response to Law Commission review of the SARs regime
12-02-24 - A Policy Paper outlines the government’s response to 19 recommendations contained in a Law Commission report. In 2017, the Home Office commissioned the Law Commission to review and provide recommendations on the suspicious activity reports (SARs) regime, and consider whether there is scope for reform. In 2019, the Law Commission published its report, titled ‘Anti-money laundering: the SARs regime’. The Home Office accepts or partially accepts 13 of the 19 recommendations in the report.

OFSI - New reporting requirements for Designated Persons under the Russia Regime
12-02-24 - A blog hosted by the Office of Financial Sanctions Implementation (OFSI) explains: In June 2023, the UK government announced that it would be introducing two new reporting measures, to strengthen transparency of frozen assets in the UK and assist HM Treasury in monitoring compliance with, and detecting evasion of, financial sanctions. These measures came into force in December 2023, through the Russia (Sanctions) (EU Exit) (Amendment) (No. 4) Regulations 2023. The blog explains what these new obligations mean in relation to the 'Immobilised Assets reporting measure' and the 'Designated Persons asset reporting measure'.

FCA - Reducing and preventing financial crime
08-02-24 - The Financial Conduct Authority (FCA) provided a progress update and a look-forward on 4 areas of focus in the coming year: (a) Data and technology - including suggested questions for firms' boards to ask; (ii) Collaboration - encouraging participation in data sharing initiatives and exploring the latest advances in data sharing technology to improve collaboration; (c) Consumer awareness - including suggested questions for firms' boards to ask; and (d) Metrics (measuring effectiveness) - Firms should be able to measure their own effectiveness at preventing financial crime through using outcomes and metrics. The FCA encourages firms to consider how their interventions could contribute towards a reduction in overall rates of financial crime.

EBA - New guidelines to extend the scope of ML/TF Risk Factors Guidelines to crypto-asset service providers (CASPs)
16-01-24 - The European Banking Authority (EBA) issued updated Guidelines on money laundering (ML) and terrorist financing (TF) risk factors, which extend to coverage of crypto-asset service providers (CASPs). The new Guidelines highlight ML/TF risk factors and mitigating measures that CASPs across the EU need to consider when implementing the risk-based approach to AML/CFT as part of their business.

UK Gov - Guidance on money laundering reporting obligations in relation to DAML exemption
10-01-24 - The Home Office issued Guidance on money laundering reporting obligations in relation to Defence Against Money Laundering (DAML) exemption provisions introduced by the Economic Crime and Corporate Transparency Act 2023. On 5 January 2023, the threshold amount specified in section 339A of the Proceeds of Crime Act 2002 (POCA) increased from £250 to £1,000 for acts in operation of an account (such as mortgage payments) maintained with a bank or similar firm. This does not apply to other actions such as returning funds when terminating a relationship with a customer.

Legal Privacy Cookies Search