SYSC326 - News (2020)

News (2020)

Links to articles and announcements on financial crime.

2024 2023 2022 2021 2020 2019

HMT/OFSI - Consolidated List – Change Notice
31-12-2020 - 'Change Notice' issued by the Office of Financial Sanctions Implementation (OFSI) mentions: (i) Regimes have been implemented under the Sanctions and Anti-Money Laundering Act 2018 (SAMLA) and updated in line with the UK Sanctions List, with some regime names changing; (ii) A number of entries are not designated in regulations made under SAMLA and are not subject to an asset freeze or listed on the Consolidated List; (iii) Several entries have moved to other regimes; and (iv) Additionally, some information has been merged into other listings.

FATF - Covid-19-related money laundering and terrorist financing risks
23-12-2020 - Financial Action Taskforce (FATF) analysis on criminals exploiting the global pandemic, linked to the counterfeiting of medical goods, investment fraud, adapted cyber-crime scams, and exploiting economic stimulus measures put in place by governments. Also mentions online child exploitation, increased property crime due to properties being left uninhabited and corruption in relation to contracts for medical supplies.

Gambling Commission - Updated risk assessment
19-12-2020 - The Gambling Commission released an updated version of its Risk Assessment of Money Laundering and Terrorist Financing in the British gambling market 2020. Relevant licensees must: ‘ensure that such policies, procedures and controls are implemented effectively, kept under review, revised appropriately to ensure that they remain effective and take into account any applicable learning or guidelines published by the Gambling Commission from time to time.’

HMT & Home Office - National risk assessment of money laundering and terrorist financing 2020
17-12-2020 - HM Treasury and the Home Office published the 2020 National Risk Assessment (NRA) of Money Laundering and Terrorist Financing. Described as a stock-take of collective knowledge of money laundering and terrorist financing risks in the UK, which regulated firms should take account of when conducting their own risk assessments.

FCA - Temporary Registration Regime established for cryptoasset businesses
16-12-2020 - Press Release issued by the Financial Conduct Authority (FCA) announcing a Temporary Registration Regime has been established to allow existing cryptoasset firms, who have applied to be registered with the FCA, to continue trading. Firms that did not submit an application by 15 December 2020 will be ineligible for the temporary registration regime. They should return cryptoassets to customers and stop trading by 10 January 2021; or be at risk of the FCA’s criminal and civil enforcement powers.

HMRC - Civil measures for money laundering supervision
09-12-2020 - Updated guidace on HMRC powers under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017). Civil measures listed within the guidance could be used if a business is in breach of 'relevant requirements' as listed in Schedule 6 to the MLR 2017. HMRC may treat any breach of the regulations as a criminal matter.

FATF and the Egmont Group - Trade-based money laundering
09-12-2020 - The report is a companion piece to earlier Financial Action Taskforce (FATF) and FATF-style Regional Body (FSRB) documents focusing on trade-based money laundering (TBML). Report conclusions include - "The overarching theme of the report is one of vigilance, with competent authorities, private sector institutions, and other participants in global supply chains encouraged to use the report as a guide."

House of Commons Library - Politically Exposed Persons Regime
02-12-2020 - House of Commons Library briefing paper (Number 7376) on the UK's Politically Exposed Persons Regime. Mentions criticism of the regime by PEPs, including British MPs, focusing on two points: (i) the relatively recent requirement to treat domestic and foreign PEPs alike, even for domestic PEPs without formal executive power; and (ii) perceived overly-cautious approaches taken by some risk-averse firms, which it has been argued resulted in disproportionate due diligence measures taken against PEPs, their families or their close associates.

National Crime Agency: Illicit finance risks faced by independent schools
02-12-2020 - The National Economic Crime Centre (NECC), in conjunction with the Independent Schools Council (ISC) and the Independent Schools' Bursars Association (ISBA), has published an alert on the money laundering risks faced by independent schools.

OFSI - Get ready for the end of the transition period
01-12-2020 - A reminder from the Office of Financial Sanctions Implementation (OFSI) that from 11:00pm on 31 December 2020, the UK will no longer apply EU sanctions regulations and all sanctions regimes will be implemented through UK regulations. Tho OFSI blog explains: (i) what you need to know about these changes; (ii) what OFSI has already implemented, and (iii) what you need to do now.

National Crime Agency: 2020 Annual Report on SARs regime
19-11-2020 - The annual report identifies the UK Financial Intelligence Unit (UKFIU) handled a record number of Suspicious Activity Reports (SARs), received and processed 573,085 (a 20% increase on the previous period of 478,437), and dealt with an 81% increase in requests for a defence against money laundering or terrorist finance (62,408).

Gambling Commission: Revised AML Guidance
13-11-2020 - The Gambling Commission published a revision to the 5th Edition of the guidance for non-remote and remote casino operators on the Prevention of money laundering and combating the financing of terrorism.

JMLSG: The Money Laundering and Terrorist Financing (Amendment) (EU Exit) Regulations 2020
11-11-2020 - The Joint Money Laundering Steering Group ('JMLSG') highlights changes introduced by the Regulations, include provisions relating to trusts (e.g. updating the trust register and reporting discrepancies in beneficial ownership). JMLSG Guidance will be amended as appropriate and where relevant. Other changes noted with effect from 6th October: (i) Regulation 33 (obligation to apply EDD) has been amended to specify duties on insurance firms in relation to beneficiaries of life insurance policies; (ii) Regulation 34 has been amended to clarify that firms must apply certain enhanced due diligence measures to correspondent relationships only if they involve the execution of payments; and (iii) Regulation 28 (19)(b) has been amended to replace “an appropriate level of assurance” with “assurance to a degree that is necessary for effectively managing and mitigating any risk of money laundering and terrorist financing.”

Law Commission: Corporate Criminal Liability
03-11-2020 - The Government has asked the Law Commission to investigate the laws around corporate criminal liability and provide options to reform them. Concerns have been raised over the effectiveness of current laws in criminalising corporate entities when they commit economic crime. Without action to reform this area of law, there is a risk that the UK will fall behind international standards in the prosecution of economic crime.

FATF: Updated standards on combating money laundering and the financing of terrorism & proliferation
30-10-2020 - FATF Recommendations set out a comprehensive and consistent framework of measures for countries to implement in order to combat money laundering and terrorist financing, as well as the financing of proliferation of weapons of mass destruction. The October 2020 version is the latest updates to the standards which have been in place since 2012.

Treasury Committee: Inquiry to review progress made in combatting economic crime
23-10-2020 - The Treasury Committee launched an inquiry to review progress made in combatting economic crime, in two strands: (i) Anti-money laundering systems and the sanctions regime, including the FinCEN papers and the work of the Office for Professional Body Anti-Money Laundering Supervision (OPBAS); and (2) Consumers, including emerging trends as a result of coronavirus and Authorised Push Payment Fraud.

SFO: Guidance on Deferred Prosecution Agreements
23-10-2020 - The Serious Fraud Office (SFO) published a chapter from its handbook which offers guidance on how the SFO approaches Deferred Prosecution Agreements (DPAs), and how it engages with companies where a DPA is a prospective outcome. The SFO is the only UK law enforcement agency to have negotiated DPAs and has entered into eight to date.

FCA & PRA: Goldman Sachs International fined £96.6m
22-10-2020 - The Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) fined Goldman Sachs International (GSI) a total of £96.6 million for risk management failures connected to 1Malaysia Development Berhad (1MDB) and its role in three fund raising transactions for 1MDB, involving clients and counterparties in jurisdictions with higher financial crime risk. GSI failed to assess and manage risk to the required standard. GSI also failed to address allegations of bribery in 2013.

TI: Exporting Corruption 2020
13-10-2020 - Transparency International’s 2020 report, Exporting Corruption, rates the performance of 47 leading global exporters, including 43 countries that are signatories to the Organisation for Economic Co-operation and Development (OECD) Anti-Bribery Convention, in cracking down on bribery of foreign public officials by companies operating abroad.

FAP: Civil Fraud and Asset Recovery
06-10-2020 - The Fraud Advsiory Panel issued an updated briefing note on how fraud is usually dealt with under the civil law in England and Wales. The Fraud Advisory Panel is a registered charity and membership organisation. It is also is a respected and independent voice of the anti-fraud community.

SME News: FCRM wins UK Enterprise Award
30-09-2020 - We are pleased to acknowledge FCRM has been awarded 'Best Financial Crime Risk Management Specialists' in the 2020 UK Enterprise Awards. To read more about the 2020 awards see the special edition of 'UK Enterprise Awards' magazine.

NCA: SARs in Action
30-09-2020 - The National Crime Agency published the seventh edition of the UK Financial Intelligence Unit (FIU) magazine, a publication aimed at all stakeholders in the Suspicious Activity Reports (SARs) regime. The publication includes examples of UKFIU engagement, SAR case studies and updates from some industry AML groups.

HoC: Economic crime in the UK: a multi-billion pound problem
28-09-2020 - The Executive Summary of this House of Commons research paper identifies the precise scale of economic crime in the UK is unknown, but it could run to tens or hundreds of billions of pounds per year. The extent of these crimes - which include money laundering, fraud and corruption - led the Intelligence and Security Select Committee in its July 2020 report on Russia to note that London is considered a 'laundromat' for corrupt money.

CCAB - Draft AML guidance
08-09-2020 - The Consultative Committee of Accountancy Bodies issued draft guidance on the prevention of money laundering and the countering of terrorist financing. It is intended to be read by anyone who provides audit, accountancy, tax advisory, insolvency, or trust and company services in the United Kingdom and has been approved and adopted by the UK accountancy AML supervisory bodies. Content is based on law and regulation as of 10 January 2020 and is pending approval from HM Treasury.

OFSI - Annual frozen asset review and reporting
03-09-2020 - Through the Office of Financial Sanctions Implementation, HM Treasury requests all persons that hold or control funds or economic resources belonging to, owned, held, or controlled by a designated person, to provide a report to the OFSI with details of assets. If you possess covered information you are requested to complete a report and submit it to OFSI by Friday 16 October 2020.

HMT - The Money Laundering and Terrorist Financing (Amendment) (EU Exit) Regulations 2020 (Draft)
24-08-2020 - The Explanatory Memorandum indicates main changes relate to provisions introduced by Directive (EU) 2018/843 concerning the UK’s register of express trusts: in particular, expanding the register scope, and requiring information to be available in certain circumstances to those with a legitimate interest. Other changes concern correspondent banking, reporting of discrepancies in beneficial ownership information, customer due diligence on publicly listed companies, the use of confidential information, registration deadlines for some firms and directions to cryptoasset businesses. Prior to being 'laid' in Parliament, the draft has to go through a sifting process involving a committee in the House of Commons and the Secondary Legislation Scrutiny Committee in the House of Lords.

FCA - CP20/17: Extension of REP-CRIM Annual Financial Crime Reporting Obligation
24-08-2020 - The Financial Conduct Authority ('FCA') is considering extending the scope of its annual financial crime reporting obligation to include firms that carry on regulated activities that potentially pose a higher money laundering risk, irrespective of a firm’s revenue threshold. The FCA is seeking views on proposals set out in its Consultation Paper by 23 November 2020.

JMLSG - Ministerial approval of JMLSG Guidance
18-08-2020 - The JMLSG received HM Treasury ministerial approval for its guidance material published in June/July 2020 (includes Sector 22 Cryptoasset exchange providers and custodian wallet providers, Annex 5-V Pooled Client Accounts, and other revisions within Part I and Part II). See: JMLSG Current Guidance.

HMRC - Purplebricks Group PLC - estate agency business
18-08-2020 - Purplebricks Group PLC fined £266,793 for failing to have the correct policies, controls and procedures, conducting due diligence and timing of verification. An article in The Times includes: "A Purplebricks spokesman said that it had improved its practices since the fine. “This is a retrospective and historical fine that dates back to activity in 2018. We have since conducted a full review of our processes and have significantly improved our compliance procedures.”

Wolfsberg - Developing an Effective AML/CTF Programme
12-08-2020 - A Wolfsberg Group paper suggests Financial Institutions should take the following steps to evolve their AML/CTF programmes: (1) Assess Risk in Defined Priority Areas; (2) Implement/Enhance Controls; (3) Prioritise Resources; (4) Engage with Law Enforcement; and (5) Demonstrate AML/CTF Programme Effectiveness.

HMT - Anti-money laundering and counter-terrorist financing: supervision report, 2018/2019
06-08-2020 - HM Treasury's eighth annual report on AML/CTF supervision. Highlights include the FCA took formal action on c.57% of the firms reviewed and c.52% of the firms visited. The number and value of fines issued by the FCA increased when compared to the previous reporting period; and the FCA made 5 referrals to law enforcement for ML/TF related matters in 2018-19.

EU - Imposes first ever sanctions against cyber-attacks
30-07-2020 - The Council of the European Union impose restrictive measures against six individuals and three entities responsible for or involved in various cyber-attacks. These include the attempted cyber-attack against the OPCW (Organisation for the Prohibition of Chemical Weapons) and those publicly known as 'WannaCry', 'NotPetya', and 'Operation Cloud Hopper'. The sanctions imposed include a travel ban and an asset freeze. In addition, EU persons and entities are forbidden from making funds available to those listed.

JMLSG - Updated Guidance
27-07-2020 - The JMLSG published two new pieces of Guidance. The Board approved text includes a new annex within Part I: Annex 5-V on Pooled Client Accounts, and a new sectoral piece within Part II: Sector 22 Cryptoasset exchange providers and custodian wallet providers. There is also a minor amendment to paragraph 5.3.53 within Part I. The new text has been submitted to HM Treasury for approval. The latest Guidance can be accessed under “Current Guidance”.

FCA - Updated Financial Services Register
27-07-2020 - The FCA launched its updated Financial Services Register ('FSR') to help consumers avoid scams and enable firms to cross-check references and make their key staff known to customers. (NB: Under the Senior Managers and Certification Regime ('SM&CR'), the FCA intends to provide a directory of certified and assessed persons on the FSR. This enhanecement is expected later in 2020).

OFSI - Financial sanctions (Maritime sector guidance)
27-07-2020 - The Office of Financial Sanctions Implementation ('OFSI') published new financial sanctions guidance for entities and individuals which operate in, or with, the maritime shipping sector, especially those involved in areas that may be subject to UK financial sanctions restrictions. The new guidance is supplementary to, and not a replacement for, OFSI’s general guidance document.

NCA - Annual Report and Accounts (2019/20)
21-07-2020 - The Annual Report and Accounts published by the National Crime Agency, identifies the UK Financial Intelligence Unit (which operates the system for reporting suspicious activity and money laundering activity) encountered an increasing workload. In 2019-20 it received over 570,000 Suspicious Activity Reports (an increase of 22% from the previous year) and over 62,000 Defence Against Money Laundering applications (an increase of 94%).

HMRC - Technical consultation: Fifth Money Laundering Directive and Trust Registration Service
15-07-2020 - HMRC published a summary of responses received to its technical consultation on draft regulations and expansion of the Trust Registration Service, as required to transpose the Fifth Money Laundering Directive into national law. The government received 124 written responses.

OFSI - Global Human Rights Sanctions
13-07-2020 - A post, “Global Human Rights Sanctions” has been published on a blog maintained by the Office of Financial Sanctions Implementation ('OFSI'). All listings under the Global Human Rights ('GHR') sanctions regime will be published by the FCO on the UK Sanctions List. Any listings with asset freezes or other types of financial restrictions will continue to be added to OFSI’s consolidated list as well as the UK Sanctions List.

FCA - Portfolio strategy letter for payment services firms and e-money issuers
09-07-2020 - The FCA issued a 'Dear CEO letter' following its engagement with the sector, which included a review of anti-money laundering processes. The regulator found some firms were failing to manage financial crime risk. CEOs should discuss the letter with their fellow directors and/or Board. Principal firms should ensure appointed agents comply with relevant aspects of the letter's content.

FAP - The Calm Before the Storm: UK counter fraud in 2019
08-07-2020 - The Fraud Advisory Panel released its report 'The Calm Before the Storm' - The report highlights: (a) the first national economic crime plan since the 2006 Fraud Review; (b) a promised consultation on the vulnerabilities of Companies House (a serious FAP concern for many years); and (c) official attention at last being paid to pensions, investment and authorised push payment frauds.

OFSI - Financial Sanctions, Global Human Rights
06-07-2020 - OFSI published the first sanctions to operate under the United Kingdom's Sanctions and Anti-Money Laundering Act 2018. The Global Human Rights Sanctions Regulations 2020 ensure UK sanctions relating to serious violations of human rights are implemented effectively. The regulations impose asset freezes to deter those who are, or have been, involved in human rights’ violations.

JMLSG - COVID-19 update
19-06-2020 - The JMLSG reminds firms to ensure that whilst operating within the legislative framework, they are satisfied that their policies, procedures and processes continue to reflect their risk based approach, including any temporary adjustments required for COVID-19. Also references the FCA’s statement in this regard.

HMRC - Deductions: main types of expense: criminal payments, bribes and similar items
19-06-2020 - HMRC updated its Property Income Manual: A deduction cannot be claimed for payments that are: criminal in themselves - for example, a bribe to secure a contract; or made in response to a blackmail threat. This is made clear in section 55 of the Income Tax (Trading and Other Income) Act 2005 (applied to property businesses by section 272 and 272ZA) and section 1304 of the Corporation Tax Act 2009.

FCA - Commerzbank fined £37.8m over anti-money laundering failures
17-06-2020 - The FCA fined Commerzbank AG (London Branch) £37,805,400 for failing to put adequate anti-money laundering ('AML') systems and controls in place between October 2012 and September 2017. The FCA Press Release includes "...These weaknesses also persisted during a period when the FCA was publishing guidance on steps firms could take to reduce financial crime risk as well as taking enforcement action against a number of firms in relation to AML controls. Despite these clear warnings, the failures continued..."

Details of deliberate tax defaulters
15-06-2020 - HMRC updated its published details of deliberate tax defaulters - people who have received penalties either for: deliberate errors in their tax returns; or deliberately failing to comply with their tax obligations.

HMRC - Money service business guidance for money laundering supervision
02-06-2020 - Updated HMRC guidance to help money service businesses meet their requirements for money laundering supervision, including customer due diligence, record keeping and reporting suspicious activity.

JMLSG - Revised Guidance
01-06-2020 - The JMLSG published final amendments to Parts I, II and III of its Guidance. The Board approved revisions take account of comments received on consultation text published in February 2020, and have been submitted to HM Treasury for Ministerial approval. The Guidance sets out what is expected of firms in relation to the prevention of money laundering and terrorist financing.

NCA - SARs in Action
31-05-2020 - As part of the agency's feedback and support to reporters of suspicious activity reports ('SARs'), the National Crime Agency ('NCA') published issue 5 of its SARs in Action briefing papers. Coverage includes: Reporters’ approaches to fighting fraud; SARs analysis on COVID-19; SARs value in combating NHS crime and 'Modern slavery and human trafficking'.

JMLSG - Proposed guidance on Pooled Client Accounts
14-05-2020 - The JMLSG published Consultation text of proposed new piece on Pooled Client Accounts ('PCAs') in Part I Chapter 5 of its Guidance (i.e. PCA is a bank account opened with a firm by its customer, for example a legal practitioner or letting agent, to administer funds that belong to their own clients. Their clients’ money will be co-mingled but the customer’s clients will not be able to directly instruct the firm to carry out transactions). Comments are invited on the proposed content, which should be submitted by 10 June 2020.

HM Treasury & Home Office - Government statement on cross-border information-sharing within corporate groups
12-05-2020 - A statement advising regulated entities when it is acceptable to share information within corporate groups. The statement mentions Financial Action Task Force ('FATF') standards for anti-money laundering and counter-terrorist financing, and FATF guidance on private sector information-sharing. The Statement also highlights personal data from the UK should only be shared in a way that is consistent with the General Data Protection Regulation ('GDPR') and the Data Protection Act 2018 ('DPA').

HMT/BoE/PRA/FCA/CMA/PSR - Financial Services Regulatory Initiatives Grid
07-05-2020 - The Financial Services Regulatory Initiatives Grid is aimed at helping firms and other stakeholders to plan for initiatives that may have significant operational impact. The Grid covers three periods: (a) near-term (i.e. from now through the summer); (b) medium-term (i.e. from the end of the summer to March 2021); and (c) longer-term (i.e. April 2021 and beyond). Multiple topics are covered including transposition of the 5th Money Laundering Directive (Expansion of the scope of HMRC’s Trust Registration Service) and Fraud (e.g. Strong Customer Authentication and Specific Direction 10 (Confirmation of Payee)).

European Commission - Third countries with strategic deficiencies in their AML/CFT regimes
07-05-2020 - The European Commission adopted a new delegated regulation in relation to third countries which have strategic deficiencies in their AML/CFT regimes that pose significant threats to the financial system of the Union ('high-risk third countries'). The delegated regulation amends delegated Regulation (EU) 2016/1675 and is scheduled to enter into force on the twentieth day following that of its publication in the Official Journal of the European Union. However Article 2 shall apply from 1 October 2020.

European Commission - Steps up fight against money laundering and terrorist financing
07-05-2020 - The Commission published an Action Plan setting out measures it intends to take over the next 12 months to improve the EU's overall fight against money laundering and terrorist financing, as well as strengthening the EU's global role in this area.

NCA - Suspicious Activity Reports (Guidance & FAQ)
06-05-2020 - Guidance and Frequently Asked Questions published by the National Crime Agency ('NCA') which aims to provide reporters of SARs with guidance on how to submit better quality reports to the NCA.

FCA - Financial crime systems and controls during coronavirus situation
06-05-2020 - The FCA set out its expectations on how firms it supervises should apply their systems and controls to combat and prevent financial crime during the coronavirus crisis. These include: "While we recognise that the current climate may give rise to operational challenges in relation to financial crime systems and controls, firms should not seek to address operational issues by changing their risk appetite"; and "Where firms need to amend their controls in response to the current circumstances, decisions should be clearly risk assessed, documented and go through appropriate governance."

FATF - COVID-19-related Money Laundering and Terrorist Financing Risks and Policy Responses
04-05-2020 - The Financial Action Task Force ('FATF') issued an information paper identifying challenges, good practices and policy responses to new money laundering and terrorist financing threats and vulnerabilities arising from the COVID-19 crisis. The paper does not amend FATF Standards, but highlights key findings where criminals may use the COVID-19 pandemic to further their money laundering or terrorist financing activity.

FCA - Strong customer authentication and coronavirus
30-04-2020 - FCA announcement allowing the industry (including card issuers, payments firms and online retailers) an additional 6 months to implement Strong Customer Authentication ('SCA') for e-commerce. The SCA rules aim to reduce fraud. The new timeline of 14 September 2021 replaces the 14 March 2021 date. The announcement includes: "After 14 September 2021, any firm that fails to comply with the requirements for SCA will be subject to full FCA supervisory and enforcement action".

FCA - Business Plan for 2020/21
07-04-2020 - The FCA Business Plan identifies the regulator's 2020/21 priorities - On Financial Crime these include: (i) Making greater use of data to identify firms or areas that are potentially vulnerable; (ii) Take enforcement action where serious misconduct is uncovered, particularly where there is a high risk of money laundering; (iii) Consult on extending the Financial Crime Data Return to more firms; (iv) Test how well professional body supervisors in the legal and accountancy sectors have embedded AML strategies; (v) Ensuring firms meet FCA requirements to have effective systems and controls to detect, disrupt and reduce the risk of financial crime.

FCA & PRA - SM&CR and coronavirus (Covid-19): Furloughed staff and Reallocating Prescribed Responsibilities
03-04-2020 - Individuals performing required functions, including the Money Laundering Reporting Officer (MLRO) function, should only be furloughed as a last resort. See: (i) FCA guidance on expectations of solo-regulated firms; and (ii) FCA and PRA joint statement on expectations of dual-regulated firms.

NCA - National Strategic Assessment of Serious and Organised Crime (2020)
03-04-2020 - The National Crime Agency ('NCA') published the National Strategic Assessment of Serious and Organised Crime 2020, providing an authoritative picture of the threat to the UK from serious and organised crime. NCA priorities remain tackling the high harm, high impact offenders who: exploit the vulnerable through modern slavery, human trafficking, people smuggling and child sexual abuse; dominate communities through wholesale drugs supply networks and the illegal firearms trade, and undermine the UK’s economy and infrastructure through their criminality, seeing money syphoned off through illicit transactions and cyber-crime.

FCA - Skilled persons reports
31-03-2020 - The FCA published details of the number of skilled persons reports commissioned in Q4 2019/20 (January – March 2020) - a total of 24; of which 9 (38%) are in the category 'Lot E – Financial Crime'.

PSR - Annual Plan and Budget 2020/21
31-03-2020 - The Payment Systems Regulator published its Annual Plan and Budget 2020/21. The document acknowledges Authorised push payment ('APP') scams are a growing problem (i.e. where fraudsters trick people into transferring money to them by posing as a legitimate payee). The PSR intends to monitor and assess the extent to which the Contingent Reimbursement Model ('CRM') Code and Confirmation of Payee ('CoP') prevents APP fraud and protects victims.

OFSI - Imposes multimillion-pound monetary penalties
31-03-2020 - The OFSI published details of £20.4m in penalties imposed on Standard Chartered Bank (SCB) in February 2020. The fines relate to financial sanctions breaches in the period April 2015 to January 2018, where SCB made a series of loans to Denizbank A.Ş., a majority owned subsidiary of Sberbank, the target of restrictive measures under the EU Ukraine (Sovereignty and Territorial Integrity) regime.

Egmont - Customs-FIU Cooperation Handbook
27-03-2020 - The 'Customs – FIU Cooperation Handbook' highlights common AML challenges and recommendations to Customs services and Financial Intelligence Units ('FIUs') on topics including: (i) smuggling and concealment of currency, currency equivalents, gems and precious metals; (ii) trade-based money laundering and; (iii) money or value transfer systems and alternative remittance systems.

Details of deliberate tax defaulters
19-03-2020 - HMRC updated its published details of deliberate tax defaulters - people who have received penalties either for: deliberate errors in their tax returns; or deliberately failing to comply with their tax obligations.

JMLSG - Proposed guidance re Cryptoasset Exchange Providers and Custodian Wallet Providers
17-03-2020 - The JMLSG published proposed guidance considered by its Editorial Panel and the Board, which takes into account The Money Laundering and Terrorist Financing (Amendment) Regulations 2019. Comments on the proposed sector guidance should be provided by 18th May.

FMCL - Response to European Commission Consultation: Framework for Markets in Cryptoassets
17-03-2020 - The Financial Markets Law Committee response in two complementary reports (submitted as appendices to questionnaire). Part I comments on the classification of cryptoassets. Part II comments in response to the section of the Consultation dealing with cryptoassets which fall within the E.U. regulatory perimeter.

HMT - Budget 2020 - Economic crime levy
11-03-2020 - The government's Budget Report includes an intention to introduce a levy to be paid by firms subject to the Money Laundering Regulations, to help fund action to tackle money laundering and delivery of reforms in the Economic Crime Plan. A consultation is expected to be published in the Spring.

FATF - Guidance on Digital ID
06-03-2020 - In any financial transaction, knowing your customer is essential to ensure that the funds involved are not linked with crime and terrorism. In a digital context, the FATF has developed 'Guidance' to help governments, financial institutions, virtual asset service providers and other regulated entities determine whether a digital ID is appropriate for use for customer due diligence.

FCA - STORs received in 2019
28-02-2020 - FCA data for 2019 indicates the number of suspicious transaction and order reports ('STORs') is on the decrease. FCA observations note there may be several reasons for the decrease, including some firms taking more robust steps to tackle financial crime risk following publication of Chapter 8 of the Financial Crime Guide in December 2018 and the FCA's associated supervisory activity.

EBA - Factsheet on its AML/CFT responsibilities across the EU financial sector
28-02-2020 - The Factsheet describes how the European Banking Authority leads development of EU-wide AML/CFT policies and standards, monitors risk to the integrity of the single market and coordinates supervisory actions at Union level to ensure that financial institutions apply effective and robust AML/CFT controls wherever they operate in the single market.

HMT Advisory Notice - Money laundering and terrorist financing controls in higher risk jurisdictions
25-02-2020 - On 21 February 2020 the FATF published two statements identifying jurisdictions with strategic deficiencies in their AML/CTF regimes. HM Treasury published an updated Advisory Notice on Money Laundering and Terrorist Financing controls in higher risk jurisdictions.

EU - List of non-cooperative jurisdictions
18-02-2020 - Adding to the jurisdictions listed on the EU list of non-cooperative jurisdictions for tax purposes, the EU decided to include Cayman Islands, Palau, Panama and the Seychelles in its list of non-cooperative tax jurisdictions; for failing to implement tax reforms by an agreed deadline.

NCA - Alert to the Money Service Business Sector
12-02-2020 - Alert issued by the National Crime Agency on behalf of the National Economic Crime Centre. Includes high risk indicators and a warning about serious organised criminals who may try and access services offered by a Money Service Business (MSB).

BIS - Operational and cyber risks in the financial sector
11-02-2020 - A Paper issued by the Bank for International Settlements includes: "Fraud and employee misconduct have contributed to operational losses and have come under scrutiny from regulators, often resulting in sizeable financial penalties" and " Internal fraud events and failures due to improper business practices are less likely to be discovered than other events, especially when the size of the financial firm is small."

EBA - Improving AML/CFT supervision in Europe
05-02-2020 - The European Banking Authority (EBA) published its first Report on competent authorities’ approaches to the anti-money laundering and countering the financing of terrorism (AML/CFT) supervision of banks. The EBA’s role is to lead, coordinate and monitor the fight against money laundering and terrorist financing (ML/TF) in EU Member States (also see - factsheet).

EBA - Consultation on revised guidelines on money laundering and terrorist financing risk factors
05-02-2020 - A consultation on revised ML/TF risk factors, with detail on terrorist financing risk factors and customer due diligence (CDD) measures, such as, the identification of beneficial owners, the use of innovative solutions to identify and verify customer identity, as well as regulatory expectations of firms’ business-wide and individual ML/TF risk assessments.

JMLSG - Proposed amendments to Guidance
04-02-2020 - Revisions proposed take account of The Money Laundering and Terrorist Financing (Amendment) Regulations 2019 and some refinement of the Guidance to improve clarity of other minor issues. A new sector is being created in Part II to provide specific guidance for cryptoasset exchanges and custodian wallet providers. JMLSG hopes to publish this for consultation by the end of February.

OFSI - Financial Sanctions: guidance, FAQs and information on monetary penalties
31-01-2020 - EU sanctions continue to apply in the UK until 31 December 2020 (i.e. Brexit Transition Period). The Office of Financial Sanctions Implementation will update its website if legislation or guidance changes during the transition period.

Transparency International - Corruption Perceptions Index ('CPI') 2019
23-01-2020 - The 2019 CPI shows corruption is more pervasive in countries where big money can flow freely into electoral campaigns and where governments listen only to the voices of the wealthy or well-connected individuals.

HM Treasury - Technical consultation on ‘Transposition of the Fifth Money Laundering Directive’ ('5MLD')
23-01-2020 - HMT issued a technical consultation on 'Trust Registration Services', along with proposals on the types of express trusts that will be required to register, data collection and sharing, and penalties. This is further and in addition to previous consideration per Chapter 9 of HMT's April 2019 consultation. HMT now invites further comments and evidence, before 21 February 2020.

HM Treasury - Transposition of the Fifth Money Laundering Directive ('5MLD'): Consultation response
23-01-2020 - In April 2019 HMT issued a consultation paper on how government intended to implement 5MLD. The consultation closed in June 2019. 5MLD transposed into domestic law before HMT published the consultation response (i.e. The Money Laundering and Terrorist Financing (Amendment) Regulations 2019 entered into law on 10 January 2020).

EBA updates guidelines on fraud reporting under PSD2
22-01-2020 - The European Banking Authority ('EBA') published amendment to its 2018 guidelines on fraud reporting under the revised Payment Services Directive ('PSD2. Changes reflect consequential amendments to reporting templates under the guidelines as a result of clarifications provided by the European Commission on application of strong customer authentication ('SCA') to certain transactions.

Details of deliberate tax defaulters
21-01-2020 - HMRC updated its published details of deliberate tax defaulters - people who have received penalties either for: deliberate errors in their tax returns; or deliberately failing to comply with their tax obligations.

SFO - Updated Guidance on evaluating a Compliance Programme
17-01-2020 - The Serious Fraud Office updated its 'Operational Handbook' which includes a chapter on evaluating a Compliance Programme. The chapter considers the relevance of compliance programmes for SFO cases (e.g. linked to Bribery & Corruption investigations) and how the SFO will investigate the effectiveness of a compliance programme.

Dentons Sanctions Year-in-Review
17-01-2020 - A useful paper from Dentons. An annual Sanctions Year-in-Review with global developments and policy updates from Canada, Europe, United Kingdom and the United States. Includes summaries of major regulatory developments and guidance, with a recap and analysis of 2019 and a look ahead to 2020.

Details of deliberate tax defaulters
13-01-2020 - HMRC updated its published details of deliberate tax defaulters - people who have received penalties either for: deliberate errors in their tax returns; or deliberately failing to comply with their tax obligations.

FCA - Becomes AML and CTF supervisor of UK cryptoasset activities
10-01-2020 - The FCA confirms it is now the anti-money laundering and counter terrorist financing (AML/CTF) supervisor for businesses carrying out certain cryptoasset activities under the amended MLR 2017. The article includes a link for UK cryptoasset businesses to access the registration process.

5MLD - Implementation go-live in UK regulated sector
10-01-2020 - The Money Laundering and Terrorist Financing (Amendment) Regulations 2019 (‘MLR 2019’) 'go-live' today, implementing the Fifth EU Money Laundering Directive (‘5MLD’) into UK law. See our special FAQ which highlight key elements of new and enhanced obligations relevant to regulated firms’ and their internal compliance arrangements.

Companies House - New reporting requirement for obliged entities comes into force
10-01-2020 - A Companies House Notice describes: "From 10 January 2020, all obliged entities must tell Companies House if there’s a discrepancy between the information that they hold about a beneficial owner and information on the Companies House people with significant control (PSC) register. The requirement extends to any obliged entity required to carry out customer due diligence under anti-money laundering regulations. These entities include banks, financial institutions and credit reference agencies, among others."

Bloomberg - U.K. Law to Combat Dirty Money in Art Market Set to Take Effect
08-01-2020 - The Bloomberg article describes: "Starting Friday, art businesses registered in the country, including galleries, auction houses and freeport operators storing high-value items, will have to verify client identities on transactions exceeding 10,000 euros ($11,000), according to the regulations approved by Parliament shortly before Christmas. The veracity of such deals also will have to be confirmed to ensure they aren’t part of money-laundering schemes."

HMRC - Transparency Busted! HMRC reveals biggest criminal cases of year 2019
02-01-2020 - HMRC webpage describing: "HMRC’s fraud investigations have led to more than 600 individuals being convicted for their part in tax crimes and commenced new criminal investigations into more than 610 individuals during the last 12 months. The Fraud Investigation Service continues to bring in around £5 billion a year through civil and criminal investigations." Also provides a summary of some 'top criminal cases' from 2019.

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