On 13 February 2019, the European Commission adopted a Delegated Regulation supplementing the Fourth Anti-Money Laundering Directive (MLD4) by identifying high-risk third countries with strategic deficiencies. The Delegated Regulation identifies 23 high-risk third countries with strategic deficiencies in their safeguarding against money laundering and terrorist financing. The countries are listed in an annex to the … Continue Reading
On 31 January 2019, the Joint Money Laundering Steering Group (JMLSG) published a press release announcing its work plan for 2019. The press release notes that new areas of guidance in 2019 will cover areas such as virtual currency exchanges, digital identities, and payment initiation services, alongside further work on the implementation of the Fifth … Continue Reading
On 31 January 2019, the European Commission adopted a Delegated Regulation supplementing the Fourth Anti-Money Laundering Directive (MLD4) with regard to regulatory technical standards (RTS) for the minimum action and the type of additional measures credit and financial institutions must take to mitigate money laundering and terrorist financing risk in certain third countries. The RTS … Continue Reading
On 23 January 2019, the Council of the EU published a press release of its meeting of 22 January 2019 on economic and financial affairs. The first item of discussion listed in the press release is the European system of financial supervision (ESFS). The EU Presidency has proposed to prioritise the provisions relating to the … Continue Reading
On 10 January 2019, the Joint Money Laundering Steering Group (JMLSG) published a webpage noting that certain amendments to the Money Laundering, Terrorist Financing and Transfer of Funds (Information of the Payer) Regulations 2017 came into effect on 10 January 2019. These amendments have resulted in minor changes to the JMLSG guidance in Part I paragraphs … Continue Reading
On 27 December 2018, there was published in the Official Journal of the European Union (OJ) Council Decision (EU) 2018/2059 of 29 November 2018 on the position to be adopted, on behalf of the European Union, within the EEA Joint Committee concerning the amendment of Annex IX (Financial Services) to the EEA Agreement. Annex IX … Continue Reading
Earlier this year, the Financial Action Task Force (FATF) together with the Asia Pacific Group on Money Laundering (APG) published a report analysing the financial flows associated with human trafficking. The report: summarises indicators of financial transactions that are laundering the proceeds of human trafficking (e.g. multiple wages being paid into one account, rapid in/out … Continue Reading
On 13 December 2018, there was published on the legislation.gov.uk website The Money Laundering and Terrorist Financing (Miscellaneous Amendments) Regulations 2018 together with an explanatory memorandum. The statutory instrument amends the: Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (the MLRs) in order to implement minor amendments the Fourth … Continue Reading
The production of recreational cannabis was legalised in Canada in October 2018. As a consequence, UK corporates and financial institutions wishing to invest or be involved in activity relating to Canadian cannabis businesses face a real obstacle: doing so could technically constitute a criminal offence under UK money laundering legislation (see our previous blog here). … Continue Reading
On 12 September 2018, we blogged that the European Commission had published an amended proposal on the amendment of the three Regulations founding the European Supervisory Authorities (ESAs). The amendments seek to centralise the tasks relating to the prevention and combatting of money-laundering and terrorist financing (AML/CTF) into the European Banking Authority (EBA). The amended … Continue Reading
On 7 December 2018, the Financial Action Task Force (FATF) published the results of its assessment of the UK’s anti-money laundering and counter terrorist financing (AML/CTF) regime. The assessment was a comprehensive review of the effectiveness of the UK’s measures and their level of compliance with the FATF Recommendations. Key findings from the FATF’s assessment … Continue Reading
On 4 December 2018, the Council of the EU published a document containing the outcome of proceedings with regards the anti-money laundering (AML) action plan. In the context of money laundering, the Council: urges the swift implementation in Member States of the fourth Anti-Money Laundering Directive and invites the transposition of the fifth Anti-Money Laundering … Continue Reading
On 13 November 2018, the FCA published a report entitled Financial crime: analysis of firms’ data. The report follows on from the FCA’s 2016 annual financial crime data return – in which over 2,000 firms (including all UK based banks and building societies), had to provide intelligence on the threats and trends they are facing. … Continue Reading
On 12 November 2018, there was published in the Official Journal of the EU (OJ) Directive (EU) 2018/1673 of the European Parliament and of the Council of 23 October 2018 on combating money laundering by criminal law. The Directive provides a harmonised list of 22 predicate offences, which include cybercrime, aiding and abetting, inciting and … Continue Reading
The last couple of months have been busy on the anti-money laundering (AML) front. In case you missed them here are the AML related blogs we have published since September: September European Commission proposes to make EBA sole EU authority tackling money laundering (13 September 2018); European Commission communication on strengthening EU AML supervision for … Continue Reading
On 8 November 2018, the Joint Committee of the European Supervisory Authorities published a consultation paper on draft guidelines on cooperation and information exchange for the purposes of the Fourth Anti-Money Laundering Directive (4MLD) between competent authorities supervising credit and financial institutions. The draft guidelines set out the rules that govern the establishment and operation … Continue Reading
On 14 October 2018, the Financial Action Task Force (FATF) published its annual report 2017-18. Among other things the annual report notes that during the year the FATF: completed its two-year terrorist financing operational plan and adopted a new plan to continue its focus on the evolving threat; revised its standards to respond to the … Continue Reading
On 25 October 2018, the Financial Action Task Force (FATF) published the final version of their guidance for a risk-based approach (RBA) for the securities sector (the Guidance). The RBA is key for businesses to understand the money laundering and terrorist financing (ML/TF) risks to which they are exposed; the Guidance offers specific advice for … Continue Reading
On 25 October 2018, HM Treasury updated its advisory notice on money laundering and terrorist financing controls in higher risk jurisdictions. The advisory notice briefly sets out the requirement to apply Enhanced Due Diligence for higher risk jurisdictions and attaches two statements that the Financial Action Task Force (FATF) published on 19 October 2018 identifying … Continue Reading
In a judgment recently published by the High Court (available here), a claimant has been granted the right to inspect suspicious activity reports (SARs) filed by his bank. The Court made the order in interlocutory proceedings brought in the course of an individual’s claim against his bank for breach of contract, breach of the Data … Continue Reading
On 3 October 2018, the FCA published Thematic Review 18/3: Money laundering and terrorist financing risks in the e-money sector (TR18/3). TR18/3 sets out the FCA’s findings following visits to 13 authorised Electronic Money Institutions and registered small Electronic Money Institutions (collectively EMIs) to assess their anti-money laundering (AML) and counter-terrorist financing (CTF) controls. EMIs … Continue Reading
On 18 September 2018, the Council of the EU published the minutes of its meeting on general affairs (the Minutes). On page 13 of the Minutes, the Council provides a non-objection to the Commission Delegated Regulation adding Pakistan to the list of high-risk third countries under the Fourth Anti-Money Laundering Directive (the Delegated Regulation). The … Continue Reading
On 12 September 2018, the European Parliament adopted its first reading positions on two measures to counter money laundering within the EU: Regulation (EU) 2018/… of the European Parliament and of the Council on controls on cash entering or leaving the Union and repealing Regulation (EC) No 1889/2005 (the Regulation). Directive (EU) 2018/… of the European … Continue Reading
On 12 September 2018, the European Commission published a communication: Strengthening the Union framework for prudential and anti-money laundering (AML) supervision for financial institutions (the Communication). The Commission is concerned that gaps remain in the Union’s AML supervisory framework. In particular, concerns have arisen that there is no clear articulation between the prudential and AML … Continue Reading
