SYSC326 - News (2022)

News (2022)

Links to articles and announcements on financial crime.

2024 2023 2022 2021 2020 2019

HMT - Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CTF): Supervision Report 2020-22
19-12-22 - HM Treasury (HMT) published its Annual Report for 2020 to 2022 on Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) supervision. The report provides information about the performance of the UK's AML/CTF supervisors between 6 April 2020 – 5 April 2022 and fulfils the Treasury’s obligation, under Section 51 of the The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, to publish an annual report on supervisory activity.

UK Gov - The Proceeds of Crime (Money Laundering) (Threshold Amount) Order 2022
15-12-22 - The Government approved an increase in the threshold amount specified in section 339A of the Proceeds of Crime Act 2002 (POCA), from £250 to £1,000, effective from 5 January 2023. The threshold amount is the value of criminal property below which a bank or similar firm (a deposit-taking body, electronic money or payment institution) can carry out a transaction, in operating an account for a customer, without committing one of the main money laundering offences in sections 327 to 329 of POCA.

FCA - Santander fined £107.8m for repeated anti-money laundering failures
09-12-22 - The Financial Conduct Authority (FCA) fined Santander UK Plc (Santander) £107.8m after it found serious and persistent gaps in its anti-money laundering (AML) controls, affecting its Business Banking customers. Between December 2012 and October 2017, Santander failed to properly oversee and manage its AML systems, significantly impacting account oversight of more than 560,000 business customers. Santander had ineffective systems to adequately verify the information provided by customers about the business they would be doing. The firm also failed to properly monitor the money customers had told them would be going through their accounts compared with what actually was being deposited.

FCA - Julius Baer International Limited fined £18m
30-11-22 - The FCA fined Julius Baer International Limited (JBI) £18m for failing to conduct its business with integrity, failing to take reasonable care to organise and control its affairs and failing to be open and cooperative with the FCA. The regulator also banned certain individuals associated with Bank Julius Baer (BJB) and JBI, linked to ‘Finders fees’ paid to an employee of a number of Yukos Group companies. The FCA's Press Release includes: 'There were obvious signs that the relationships here were corrupt, which senior individuals saw and ignored. These weaknesses create the circumstances in which financial crime of the most serious kind can flourish. The FCA’s decisions on the individuals whom the FCA alleges were involved in these failures will now be reviewed in the Upper Tribunal.'

JMLSG - Publishes final amendments to Part I of Guidance
23-11-22 - The Joint Money Laundering Steering Group (JMLSG) published final amendments to Part I of its Guidance following the consultation text that was published in September 2022. The revisions have been submitted to HM Treasury for Ministerial approval, and may be accessed via the JMLSG website, under the “Revisions” tab. [See entry below for 16-09-22]

HMRC - Understanding risks and taking action for money service businesses
21-11-22 - HM Revenue & Customs (HMRC) published updated guidance on the key areas that money service businesses (MSBs) should consider as they carry out supervised business activities. The guidance sets out a number of Key Risk Indicators (KRI) and identifies risks common to all MSBs, which include: (i) the widespread use of cash by criminals; (ii) organised crime groups trying to infiltrate the MSB or corrupt its employees; (iii) the use of anonymous ways to deposit cash; and (iv) criminals taking advantage of weak or inadequate policies, controls and procedures.

FCA - Final Notice to former CEO for anti-money laundering failings
18-11-22 - The FCA publicly censured the former Chief Executive Officer of Sonali Bank (UK) Limited (SBUK) for anti-money laundering (AML) failings. Mr Prodhan was the senior manager at SBUK with responsibility for the establishment and maintenance of effective AML systems and controls. Between June 2012 and March 2014, Mr Prodhan failed to take reasonable steps to assess and mitigate AML risks arising from a culture of non-compliance among SBUK’s staff. He failed to ensure that there was a clear allocation of responsibilities to oversee SBUK’s branches, and he also failed to properly oversee, manage, and resource SBUK’s Money Laundering Reporting Officer (MLRO) function.

HMT - Money Laundering Advisory Notice: High Risk Third Countries
14-11-22 - On 21 October 2022, the Financial Action Task Force ('FATF') published two statements identifying jurisdictions with strategic deficiencies in their anti-money laundering and counter terrorist financing ('AML/CTF') regimes. In response HM Treasury (HMT) updated its Advisory Notice on High-Risk Third Countries. The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 require firms to put in place policies and procedures in order to prevent activities related to money laundering and terrorist financing. Regulated businesses are also required to apply enhanced customer due diligence and enhanced ongoing monitoring on a risk-sensitive basis in certain defined situations and in any other case which by its nature can present a higher risk of money laundering or terrorist financing.

OFSI - Annual Review
10-11-22 - The Office of Financial Sanctions Implementation (OFSI) published its Annual Review, which includes additional reporting on data from 24 February to 24 August 2022 (the first 6 months of the Russian invasion of Ukraine) as well as reporting data from the financial year 2021 to 2022.

HMT - Economic Crime and Corporate Transparency Bill 2022: Factsheets
09-11-22 - HM Treasury (HMT) published a series of Factsheets with details of the different measures contained in the Economic Crime and Corporate Transparency Bill. The Bill aims to introduce Companies House reform, reduce the abuse of limited partnerships (while ensuring that limited partnerships remain attractive to legitimate investors), provide greater power to seize criminal cryptoassets, enable information sharing by businesses to tackle money laundering and other economic crime, and provide additional intelligence gathering powers for law enforcement. The Bill is at Committee stage in the House of Comons, where it is expected to undergo detailed examination.

JMLSG - Guidance Part II, Consultation
08-11-22 - The Joint Money Laundering Steering Group (JMLSG) published proposed amendments to sectoral content in Part II of its Guidance on Prevention of money laundering/combating terrorist financing. The proposed text is available in marked up format on the JMLSG website. Revisions are relevant to: Sectors 5 (Wealth management) and 6 (Financial advisers), Sector 8 (Non-life providers of investment fund products), Sector 9 (Discretionary and advisor investment management), Sector 11A (Consumer credit providers), Sector 13 (Private equity), and Sector 22 (Cryptoasset providers and custodian wallet providers). Comments on changes proposed should be submitted by 20th December 2022.

HMT – Frozen Assets Reporting (2022)
07-11-22 - In September 2022 HM Treasury (HMT) requested all persons that hold or control funds or economic resources belonging to, owned, held, or controlled by a designated person, should provide a report to HMT with the details of these assets. If you possess such information or have previously reported frozen assets (including since February 2022), you are requested to complete and submit a report to the Office of Financial Sanctions Implementation (OFSI) by Friday 11 November 2022.

SFO – Glencore to pay £280 million for ‘highly corrosive’ and ‘endemic’ corruption
03-11-22 - Serious Fraud Office (SFO) Press Release identifies Glencore Energy UK Ltd will pay £281m after an SFO investigation revealed it paid US $29m in bribes to gain preferential access to oil in Africa. Glencore pleaded guilty to seven counts of bribery, after an SFO investigation into bribes paid to maximise oil trading profits in five African countries. The financial penalty ordered by the Judge includes a fine, a confiscation order for the profit it obtained from bribes, and the SFO’s costs. The largest confiscation order for an SFO case and the highest ever ordered in a corporate criminal conviction.

Wolfsberg - Comment Letter on EU AML/CFT Legislative Package
01-11-22 - The Wolfsberg Group shared its Comment Letter on the EU AML/CFT Legislative Package (as addressed to EU officials on 28 October 2022). The Group supports proposals to strengthen and harmonise the EU’s AML/CFT framework and regulatory oversight process. The submission aligns with individual responses contributed by Wolfsberg members, who have also engaged on the EU AML/CFT Legislative Package with trade associations and international bodies.

Wolfsberg - Financial Crime Principles for Correspondent Banking
28-10-22 - The Wolfsberg Group published updated Financial Crime Principles for Correspondent Banking. The document updates the 2014 version and provides guidance and best practices for banks, draws a distinction between Correspondent Relationships and Correspondent Banking activity, addresses entities other than banks who have Correspondent Relationships, and incorporates revised Frequently Asked Questions that were previously a separate document.

FCA – Gatehouse Bank fined for poor anti-money laundering checks
14-10-22 - The Financial Conduct Authority (FCA) fined Gatehouse Bank £1.5m for poor anti-money laundering checks. Between June 2014 and July 2017 Gatehouse, a Shariah-compliant bank which offers services primarily focused on real estate, failed to conduct sufficient checks on its customers based in countries with a higher risk of money laundering and terrorist financing. Gatehouse also failed to undertake the correct checks when some of the customers were classed as Politically Exposed Persons (PEPs).

UK Finance – Proposed guidance amendments
13-10-22 - UK Finance (in association with LexisNexis) published a Fraud Report covering the first half of 2022, which indicates criminals stole a total of £609.8 million through authorised and unauthorised fraud and scams, a decrease of just under 13 per cent compared to H1 2021. Advanced security systems used by banks also prevented just under £584 million from being stolen.

JMLSG – Proposed guidance amendments
16-09-22 - The Joint Money Laundering Steering Group (JMLSG) published proposed amendments to Part I of its Guidance, to take account of The Money Laundering and Terrorist Financing (Amendment) (High-risk Countries) Regulations 2022 and The Money Laundering and Terrorist Financing (Amendment) (No. 2) Regulations 2022. The affected text is available in mark-up on the JMLSG website Consultations tab, relevant to: (i) Paragraph 5.5.11 and Annex 5-IV – as relating to high-risk third countries (HRTC) EDD; (ii) Paragraph 5.3.129A and paragraphs 5.3.258-5.3.282 – as relating to trusts; and (iii) Chapters 4 and 7 – as relating to proliferation financing. Comments on proposed revisions should be submitted to JMLSG by 17th October 2022. [See also 23-11-22 'JMLSG - Publishes final amendments to Part I of Guidance']

Legislation - Proliferation Financing risk
01-09-22 - The Money Laundering and Terrorist Financing (Amendment) (No. 2) Regulations 2022 amended The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR), one aspect of which (in MLR 16A) includes introducing a requirement for proliferation financing (PF) risk assessments - effective from 1 September 2022. In effect: (a) HM Treasury is required to make arrangements to assess PF risks affecting the United Kingdom; and (b) Relevant persons are obligated to undertake their own PF risk-assessments and to maintain policies, controls and procedures to mitigate such risk (NB: This broadly aligns with existing provisions already set out in the MLR in relation to money laundering and terrorist financing risks).

OFSI - Financial Sanctions (updated) Guidance
30-08-22 - The Office of Financial Sanctions Implementation (OFSI) updated its General guidance for financial sanctions under the Sanctions and Anti-Money Laundering Act 2018. The updated guidance outlines obligations under financial sanctions as well as OFSI’s approach to licensing and compliance issues. It also takes into account relevant case law and guidance at the date of publication.

Wolfsberg - Wolfsberg RFI Best Practice Guidance
23-08-22 - The Wolfsberg Group published guidance on Requests For Information (RFIs), which are used when a Correspondent (or any other provider of payment services) aims to improve its understanding of a transaction that has been processed through an account or relationship in its books. RFIs are directed at the customer entity that sent the payment instruction to the Correspondent, where a bank acts on an intermediary basis. The guidance incorporates a list of frequently asked questions and expected responses from a Respondent.

JMLSG publishes revisions to Part II Sector 11 (Motor Finance) Annex 11-I
17-08-22 - The Joint Money Laundering Steering Group (JMLSG) published details about revisions made to Part II Sector 11 (Motor Finance) Annex 11-I of its Guidance. The 'new text' is available on the JMLSG website and has been submitted to HM Treasury for Ministerial approval.

FCA - Delivering good outcomes for retail customers
27-07-22 - The Financial Conduct Authority (FCA) published guidance on implementing the new Consumer Duty, which identifies where a firm provides support mainly or only through one channel, such as digital-only, there are various factors for it to consider to ensure it delivers good customer outcomes. Notable items include 'Dealing with non-standard issues'. Firms should have exceptions processes in place to deal effectively with non-standard issues that could arise in the context of their business. This could include security or fraud concerns, with firms needing a real-time human interface, such as a phone service, to deal with some issues and provide effective support to customers.

FATF - Risk-based Approach Guidance for the Real Estate Sector
26-07-22 - The Financial Action Task Force (FATF) published Guidance for the Real Estate Sector, highlighting the importance for the sector to increase its understanding of the money laundering and terrorist financing risks it faces. Vulnerabilities include exploitation by politically exposed persons, the purchase of luxury real estate, the use of virtual assets, the use of anonymous companies and gatekeepers as instruments to launder the proceeds of crime.

FCA - Report and Accounts 2021/22
19-07-22 - The Financial Conduct Authority published its Annual Report and Accounts 2021/22. With regard to financial crime the report mentions: (i) the pilot of a new data led AML supervisory approach, with 643 firms identified for proactive AML supervisory work based on data suggesting they had a high turnover of Money Laundering Reporting Officers; (ii) adopting a proactive data-led approach to fraud, to prioritise and target its supervisory work on the areas and firms which pose a higher risk to customers; (iii) writing to approximately 10,000 firms reminding them of their obligations to have effective financial sanctions controls; (iv) The use of s166 powers in 38 cases during the reporting period, including 11 on Financial Crime; (v) The criminal prosecution of Natwest for money laundering failures, resulting in fines of over £264 million, underlining its renewed commitment to enforcing high standards and stopping criminal behaviour.

PSR - Annual Report and Accounts 2021/22
19-07-22 - The Payment Systems Regulator published its Annual Report and Accounts 2021/22, which mentions Authorised Push Payment (APP) scams and the PSR's 2021 proposals, to: (i) require payment service providers (PSP) to publish their APP scam performance; (ii) drive the industry to develop intelligence sharing on APP scams; and (iii) impose mandatory reimbursement for APP scam victims.

FCA - The TJM Partnership Limited fined £2 million for serious financial crime control failings in relation to cum-ex trading
15-07-22 - The Financial Conduct Authority (FCA) fined The TJM Partnership Limited (in liquidation) £2.0 million for failing to ensure it had effective systems and controls to identify and reduce the risk of financial crime and money laundering in its business. TJM also failed to adequately apply its anti-money laundering policies and did not properly assess, monitor and mitigate the risk of financial crime. Cum-ex trading involves trading of shares on or just before the last cum-dividend date. If in a suitable jurisdiction this can then allow a party to claim a tax rebate on withholding tax, sometimes without entitlement.

JMLIT - Red ALERT - Financial Sanctions Evasion Typologies: Russian Elites and Enablers
12-07-22 - Red Alert issued by the National Economic Crime Centre (NECC), a multi-agency unit in the National Crime Agency (NCA), and HM Treasury’s Office of Financial Sanctions Implementation (OFSI), working in conjunction with law enforcement and financial sector partners as part of the Joint Money Laundering Intelligence Taskforce (JMLIT). The purpose of the alert is to provide information from law enforcement and the legal and financial services sectors as to some common techniques designated persons (DPs) and their UK enablers are suspected to be using to evade financial sanctions.

HMT - Money Laundering Advisory Notice: High Risk Third Countries
04-07-22 - On 17 June 2022 the Financial Action Task Force ('FATF') published two statements identifying jurisdictions with strategic deficiencies in their anti-money laundering and counter terrorist financing ('AML/CTF') regimes. In response HM Treasury updated its Advisory Notice on High-Risk Third Countries. The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 require firms to put in place policies and procedures in order to prevent activities related to money laundering and terrorist financing. Regulated businesses are also required to apply enhanced customer due diligence and enhanced ongoing monitoring on a risk-sensitive basis in certain defined situations and in any other case which by its nature can present a higher risk of money laundering or terrorist financing

HMT - Review of the UK’s AML/CFT regulatory and supervisory regime
24-06-22 - The government published: (i) A forward-looking review of the UK’s AML/CFT regime, in response to a call for evidence launched in 2021; (ii) A post-implementation review of the Money Laundering Regulations 2017; and (iii) A post-implementation review of the OPBAS Regulations 2017. The three documents make a thorough evaluation of the role of the regulations in the UK’s anti money-laundering regime and set out the next steps to improve their effectiveness.

FCA - Ghana International Bank Plc £5.8m for failings in its anti-money laundering controls
23-06-22 - The Financial Conduct Authority (FCA) fined Ghana International Bank Plc (GIB) £5.8m for poor anti-money laundering and counter-terrorist financing controls over its correspondent banking activities. Banks are required to do extra checks on correspondent banking customers to reduce the higher risk of money laundering and terrorist financing associated with the service. Between 1 January 2012 and 31 December 2016, GIB did not adequately perform the additional checks required when it established relationships with the overseas banks and failed to demonstrate it had assessed those banks’ anti-money laundering controls. GIB also failed to undertake annual reviews of the information it held on the banks it had a relationship with, failed to give staff adequate training on how to scrutinise transactions properly and did not establish appropriate policies and procedures for staff.

FCA - JLT Specialty Limited fined £7.8m for financial crime control failings
22-06-22 - The Financial Conduct Authority (FCA) fined JLT Specialty Limited (JLTSL) £7,881,700 for financial crime control failings, which in one instance allowed bribery of over $3m to take place. Between November 2013 and June 2017, JLTSL paid $12.3m in commission to JLT Colombia Wholesale Limited, the parent company of JLT Re Colombia, which in turn paid $10.8m to a third-party introducer. The introducer then paid over $3m to government officials at a state-owned insurer in order to help retain and secure their business for JLTSL and JLT Re Colombia.

HOC - Treasury Committee / Financial Conduct Authority’s (FCA) responsibilities regarding financial sanctions
20-06-22 - The House of Commons (HOC) Treasury Committee wrote to the Financial Conduct Authority (FCA) requesting a response to eleven specific questions, to assist the Treasury Committee's understanding of FCA responsibilities regarding financial sanctions. The questions, inter-alia, include 'What is the current level of awareness and compliance at authorised firms of their obligations under UK sanctions legislation'?; How does the FCA feed into the design, implementation and enforcement of financial sanctions?; and Following the implementation of sanctions, how has the FCA engaged with firms to improve their awareness of their obligations and ensure they have adequate systems and controls in place?

JMLSG - Proposed amendments to Motor Finance Guidance
17-06-22 - The Joint Money Laundering Steering Group (JMLSG) published proposed amendments to Sector 11 (Motor Finance) Annex II-I in Part II of its Guidance.
Comments on the amendments should be submitted by 18th July 2022.

HMT - Amendments to the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017
15-06-22 - In July 2021 HM Treasury (HMT) launched a consultation on how the government intended to amend the UK's Money Laundering Regulations (the MLRs) in order to make several time-sensitive updates. The consultation closed on 14 October 2021. In June 2022 HMT published a summary of responses to the consultation and how the government intends to progress amendments to the relevant Statutory Instrument (SI).

EBA - Guidelines on role and responsibilities of the AML/CFT compliance officer
14-06-22 - The European Banking Authority (EBA) published Guidelines on the role and responsibilities of the anti-money laundering and countering the financing of terrorism (AML/CFT) compliance officer and of the management body of credit or financial institutions. The Guidelines (applicable from 1 December 2022) aim to ensure a common interpretation and adequate implementation of AML/CFT internal governance arrangements across the EU in line with requirements of the EU Directive on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing (ML/FT).

Law Commission - Corporate Criminal Liability
10-06-22 - The Law Commission published an options paper for the Government on how it can improve the law to ensure that corporations are effectively held to account for committing serious crimes. The paper presents options designed to ensure that corporations of all forms can be properly convicted of crimes, without placing an administrative burden on law-abiding businesses. These include extending “failure to prevent” offences so that they capture other economic crimes by corporations, including an offence of “failure to prevent fraud”.

OFSI - New enforcement powers
08-06-22 - A 'blog' maintained by the Office of Financial Sanctions Implementation (OFSI) highlights that for breaches of financial sanctions committed after 15 June 2022, OFSI will be able to impose civil monetary penalties on a strict civil liability basis (i.e., no requirement to prove that a person had knowledge or reasonable cause to suspect that they were in breach of financial sanctions). OFSI does not prescribe what due diligence should be undertaken to prevent breaches of financial sanctions, but will continue to take into account efforts to prevent such breaches when deciding on any enforcement action.

Wolfsberg - Negative News Screening FAQs
11-05-22 - The Wolfsberg Group published Frequently Asked Questions (FAQs) on how undertaking screening for Negative News and other forms of adverse information can enhance a Financial Institution’s awareness of potential Financial-Crime risk posed by both existing and prospective customers. The Wolfsberg Group is an association of thirteen global banks which aims to develop frameworks and guidance for the management of financial crime risks, particularly with respect to Know Your Customer, Anti-Money Laundering and Counter Terrorist Financing policies.

FCA - Financial crime controls at challenger banks
22-04-22 - The Financial Conduct Authority (FCA) issued a press release following a 2021 review undertaken by the FCA, which found that challenger banks need to improve how they assess financial crime risk, with some failing to adequately check their customers’ income and occupation. In some instances, challenger banks did not have financial crime risk assessments in place for their customers. The review focused on challenger banks that were relatively new to the market and offered a quick and easy application process, which included 6 challenger retail banks, consisting of digital banks and covering over 8 million customers. In some challenger banks the FCA noted weaknesses in the management of financial crime change programmes. This included inadequate oversight and a lack of pace in implementation, meaning the challenger banks’ control frameworks were not able to keep up with changes to their business models.

FCA - Financial sanctions
12-04-22 - The Financial Conduct Authority (FCA) issued a reminder about its expectations (Under Principle 11), for authorised firms and firms operating under the temporary permissions regime (TPR) to notify the regulator if they (or their appointed representatives (ARs) and agents) are subject to sanctions.

FCA - Business Plan 2022/23
07-04-22 - The Financial Conduct Authority (FCA) published its Business Plan for 2022/23. The plan includes a focus on protecting consumers from fraud risk, via slowing the growth in: (i) Investment fraud and (ii) Authorised Push Payment (APP) fraud. The FCA intends to develop its supervision of anti-fraud systems and controls in the firms it regulates; and carry out assessments of some firms’ anti-fraud systems and controls, to understand and evaluate how they protect consumers from fraud. The plan also mentions lowering the incidence of money laundering through the firms supervised directly by the FCA and by improving the effectiveness of supervision by professional body supervisors.

FCA - Cryptoassets: AML / CTF regime
01-04-22 - The Financial Conduct Authority (FCA) updated its position with regard to the Temporary Registration Regime (TRR) established in December 2020. Cryptoasset firms that had applied for registration before 16 December 2020, and whose applications were still being assessed, were allowed to continue trading. The FCA has concluded its assessments and the TRR is now closed, for all but for a small number of firms where it is strictly necessary to continue to have temporary registration. Only firms that are registered with the FCA or on its list of firms with temporary registration can continue trading.

HMT - Money Laundering Advisory Notice: High Risk Third Countries
17-03-22 - On 4 March 2022 the Financial Action Task Force ('FATF') published two statements identifying jurisdictions with strategic deficiencies in their anti-money laundering and counter terrorist financing ('AML/CTF') regimes. In response HM Treasury (HMT) updated its Advisory Notice on High-Risk Third Countries. The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 require firms to put in place policies and procedures in order to prevent activities related to money laundering and terrorist financing. Regulated businesses are also required to apply enhanced customer due diligence and enhanced ongoing monitoring on a risk-sensitive basis in certain defined situations and in any other case which by its nature can present a higher risk of money laundering or terrorist financing.

Real Estate - Economic Crime (Transparency and Enforcement) Act 2022
15-03-22 - The Act, which received Royal Assent on 15 March 2022, requires ‘overseas entities’ that own or seek to own qualifying property in the UK to register themselves and details of their beneficial ownership at Companies House on a Register of Overseas Entities (the 'Register'). Registration should be completed (and updated annually) before any transfer, charge or lease of over 7 years in length can be registered at HM Land Registry. After registration the relevant entity will be supplied with a unique ID number which will enable the overseas entity to deal with its interest in the land. To reduce money laundering risk overseas entities (which own qualifying property) and persons transacting with such entities (e.g., Tenants, lenders and buyers) will need evidence of the overseas entity's compliance with registration requirements to ensure their interest in the qualifying property can be properly registered with HM Land Registry.

FCA - Real estate changes in Economic Crime (Transparency and Enforcement) Act 2022on illegal crypto ATMs operating in the UK
11-03-22 - The Financial Conduct Authority ('FCA') issued a notice warning that Crypto ATMs offering cryptoasset exchange services in the UK must be registered with the FCA and comply with UK Money Laundering Regulations ('MLR'). None of the cryptoasset firms registered with the FCA have been approved to offer crypto ATM services. Consumers are advised not to use any Crypto ATM operating in the UK.

HMG - The Economic Crime (Anti-Money Laundering) Levy Regulations 2022/269
11-03-22 - These Regulations: (a) make provision about the assessment, payment, collection and recovery of the economic crime (anti-money laundering) levy (“the levy”) which is charged in accordance with Part 3 of the Finance Act 2022 (c. 3) for the financial year beginning with April 2022 and subsequent financial years (see section 66 of the Finance Act 2022); and (b) come into force on 1st April 2022, following which an appropriate collection authority is responsible for collecting and managing the levy. The appropriate collection authority is either the Financial Conduct Authority, the Gambling Commission or the HMRC Commissioners.

HMT (OFSI) - Financial sanctions, Russia
10-03-22 - The on-going situation in Ukraine has led to HM Treasury ('HMT') issuing a series of updated Financial Sanctions Notices, with updates or amendments to entries on the consolidated list of financial sanctions targets and which are now subject to an asset freeze. UK businesses, including regulated entities should monitor HMT updates for details of new designations of individuals and Russian entities. The UK Gov website outlines UK Sanctions relating to Russia. The Office of Financial Sanctions Implementation ('OFSI') also provides a blog on 'Russia: What has changed and what do I need to do?'

HoL - Fraud Act 2006 and Digital Fraud Committee: Call for evidence
09-03-22 - The House of Lords ('HoL') Committee on the Fraud Act 2006 and Digital Fraud today published a call for evidence, inviting the public to provide their views on what measures should be taken to tackle the increase in cases of fraud. The Committee is particularly keen to receive submissions from victims of fraud. The deadline for submissions is midday on Friday 22 April.

UK Gov - Fact sheet (The Register of Overseas Entities)
04-03-22 - The government is introducing a ‘Register of Overseas Entities’ to crack down on foreign criminals using UK property to launder money. The register will require anonymous foreign owners of UK property to reveal their real identities to ensure criminals cannot hide behind secretive chains of shell companies. The Register will apply retrospectively to property bought since January 1999 in England and Wales and since December 2014 in Scotland. Implementation will follow Royal Assent of the Economic Crime (Transparency and Enforcement) Bill 2022.

Gambling Commission - £9.4m fine for online operator 888
01-03-22 - The Gambling Commission published details of a £9.4m fine, following a review of the operating licence held by 888 UK Limited ('888'), which found anti-money laundering and social responsibility failings. The Commission decided to attach an additional condition to 888's operating licence, requiring a third-party audit be conducted within 12 months of the conclusion of the review, to examine whether 888 is effectively implementing its anti-money laundering and social responsibility policies, procedures and controls.

UK Gov - White Paper (Corporate Transparency and Register Reform)
28-02-22 - A White Paper setting out the Government’s position on reforms to be introduced following introduction of new legislation; including a new function for the Companies Registrar to promote and maintain the integrity of the companies register. The registrar's role will capture economic crime and other activities that may undermine the integrity of the register. The paper's content should inform awareness of the UK’s business community, law enforcement agencies and other stakeholders' of the changes to come.

FCA - Barclays fined £783,800 and agrees to make a voluntary payment to Premier FX customers
28-02-22 - The Financial Conduct Authority ('FCA') fined Barclays Bank Plc £783,800 for oversight failings in its relationship with collapsed payments firm Premier FX. Barclays was Premier FX’s sole banker in the UK. The FCA considered that Barclays did not act with due skill, care and diligence in carrying out its ongoing monitoring of Premier FX during the relevant period. FCA findings included: 'Much of the information contained in the AML/EDD review reports prepared for Premier FX by Barclays was repeated and included information cut and pasted from previous reports, which included errors that Barclays did not identify and rectify'.

Gambling Commission - £2m fine for online operator BV Gaming Limited
24-02-22 - The Gambling Commission published details of a £2m fine against BV Gaming Limited, trading as BetVictor, after a Commission investigation revealed fairness, social responsibility, and money laundering failures. Failings were identified in the implementation of anti-money laundering (AML) policies, procedures and controls. The operator – which runs betvictor.com, betvictor.mobi, hbingo.co.uk, heartbingo.co.uk and parimatch.co.uk – will pay the money as part of a settlement with the Commission.

FCA - New financial sanctions measures in relation to Russia
22-02-22 - The Foreign, Commonwealth & Development Office website includes listings of new sanctions measures against Russia. The Financial Conduct Authority ('FCA') expects firms to have established systems and controls to counter the risk that they might be used to further financial crime and this includes compliance with financial sanctions obligations. Where the FCA identifies failings in financial crime systems and controls it can impose restrictions and/or take enforcement action. Additionally, the Office of Financial Sanctions Implementation ('OFSI') has the power to levy civil monetary penalties for breaches of financial sanctions and works with law enforcement for the most egregious cases where criminal prosecution may be considered.

JMLSG - Updated guidance on People with significant control (PSCs)
17-02-22 - The Joint Money Laundering Steering Group ('JMLSG') published a revision to Part II Sector 17 (Syndicated Lending) of its Guidance, being the insertion of Paragraph 17.29A. The new text has been submitted to HM Treasury for Ministerial approval. The text includes: "If the risk of money laundering is determined to be low, and any outstanding information is not considered material from a risk perspective, a Lender may consider completing its due diligence processes as soon as practicable after it becomes a lender of record under the Facility Documentation. Particular care should however be taken in situations which by their nature present a higher risk of money laundering or terrorist financing (such as where a Borrower is established in a high risk third country)."

HOC - Politically Exposed Persons Regime
16-02-22 - The House of Commons Library ('HOC') published a briefing paper on the Politically Exposed Persons ('PEPs') Regime. The paper summarises the law on PEPs, a description of 'Who is a PEP', and the obligations to apply enhanced customer due diligence measures and enhanced ongoing monitoring when a customer (or their beneficial owner) is identified as a PEP (or a family member or known close associate of a PEP), and the requirement to manage the enhanced risks that might arise from such business relationships. The paper mentions PEPs, including British politicians, criticism of the current regime, arguing that it results in excessive due diligence requirements being imposed upon them, their families or their close associates by banks and other firms.

AML - Amending the AML regime for certain Trusts
15-02-22 - The Money Laundering and Terrorist Financing (Amendment) Regulations 2022, which enter into force on 9 March 2022, amend the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, mainly changing the time limits for registration of trusts but also adding further exclusions to the type of trusts which are required to register.

Companies House - Updated guidance on People with significant control (PSCs)
09-02-22 - Companies House updated its guidance on how to identify and record the people who own or control a company. A person with significant control ('PSC') is someone who owns or controls a company - sometimes called ‘beneficial owner’. Companies must identify their PSC and tell Companies House who they are. A company may have one or more PSCs. If a company is unable to identify a PSC, or does not have one, the company must notify Companies House.

TSC - Economic Crime
02-02-22 - The Treasury Select Committee ('TSC') issued a report identifying economic crime is on an upward trend. The executive summary includes - "Economic crime seems not to be a priority for law enforcement. The number of agencies responsible for fighting economic crime and fraud is bewildering. Each of the enforcement agencies has other crime-fighting or regulatory objectives, and the Government needs to consider whether there should be a single law enforcement agency with clear responsibilities and objectives to fight economic crime. The Government must ensure that law enforcement agencies are appropriately resourced to tackle the scale of the problem." The full report includes other detail and a number of recommendations.

FCA - Heads of compliance and MLRO applicant competency and capability
28-01-22 - The Financial Conduct Authority ('FCA') published guidance on competency and capability expectations of Heads of Compliance and Money Laundering Reporting Officers ('MLROs'); and the need for persons' in such roles to have the necessary skills and knowledge, from training and experience, to be effective. Firms are expected to take account of FCA guidance when deciding candidate suitability for these important roles.

Gambling Commission - Licence suspension and £3.8m fine for Genesis Global Limited
27-01-22 - The Gambling Commission published details of enforcement action, suspension and a £3.8m fine levied against Genesis Global Limited ('GGL') for social responsibility and money laundering failures. GGL – which runs 14 websites including genesiscasino.com, casinoplanet.com and casinocruise.com – has also been given a warning by the Commission and told it must undergo further extensive auditing.

OFSI - Updated guidance on Monetary penalties for breaches of financial sanctions
28-01-22 - The Office of Financial Sanctions Implementation ('OFSI') issued updated guidance on monetary penalties for breaches of financial sanctions. Civil and criminal enforcement options are available to remedy breaches of financial sanctions. Law enforcement agencies may consider prosecution. The monetary penalties regime is an alternative to criminal prosecution.

OFSI - UK Sanctions List: change to the list's format
10-01-22 - The Office of Financial Sanctions Implementation ('OFSI') issued guidance on changes to be implemented in February 2022, to the structure and format of sanctions list data. The guidance has been issued to help businesses and other users that regularly use the UK Sanctions List and the OFSI Consolidated List, to understand and prepare for the change.

FCA - Skilled persons reports
12-01-22 - The FCA published details of the number of skilled persons reports commissioned in Q3 2021/22 (October– December 2021) - a total of 12; of which 6 (50%) are in the category 'Lot E – Financial Crime' (i.e., Advice, skills and technical expertise in financial crime, anti-bribery and corruption, third party payments, market manipulation, insider trading, anti-money laundering and governance of these areas).

Legal Privacy Cookies Search