United Kingdom

Topic: Money laundering

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Bank forced to turn over SARs in data protection dispute

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

Money laundering and terrorist financing risks in the e-money sector

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

Council non-objection to Delegated Regulation adding Pakistan to list of high-risk third countries under MLD4

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

European Parliament adopts first reading positions on anti-money laundering instruments

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

European Commission communication on strengthening EU AML supervision for financial services

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

European Commission proposes to make EBA sole EU authority tackling money laundering

On 12 September 2018, the European Commission published an amended proposal on the amendment of the three regulations founding the European Supervisory Authorities (ESAs). The amendments proposed aim 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 proposal extends the … Continue Reading

Commission Delegated Regulation adding Pakistan to list of high-risk third countries under 4MLD

On 22 August 2018, the European Commission published a Delegated Regulation which amends Delegated Regulation (EU) 2016/1675 supplementing the Fourth Anti-Money Laundering Directive (4MLD). The Delegated Regulation adds Pakistan to the Annex of Delegated Regulation (EU) 2016/1675 which details third countries with strategic deficiencies in their anti-money laundering and counter-terrorist financing regimes. According to Article … Continue Reading

Canadian Cannabis and Money Laundering Risks for UK Business

Medical cannabis is already big business in Canada. With the production of recreational cannabis due to be legalised there in October 2018 that business is expected to continue to grow, with Deloitte estimating that the total legal cannabis market will generate some CAD4.34 billion in 2019. However, UK corporates and financial institutions wishing to invest … Continue Reading

Commission Delegated Regulation supplementing the 4MLD

There has been published in the OJ, Commission Delegated Regulation (EU) 2018/1108 of 7 May 2018 supplementing the Fourth Anti-Money Laundering Directive with regard to regulatory technical standards on the criteria for the appointment of central contact points for electronic money issuers and payment service providers and with rules on their functions. The Delegated Regulation … Continue Reading

The Law Commission consultation on reforming the SARs regime: Key takeaways for the financial sector

We have published a briefing analysing the key proposals in the Law Commission’s consultation on the SARs regime. The link can be found here: http://www.nortonrosefulbright.com/knowledge/publications/169657/the-law-commission-consultation-on-reforming-the-sars-regime-key-takeaways-for-the-financial-sector    … Continue Reading

FATF report on professional money laundering

On 26 July 2018, the Financial Action Task Force (FATF) published a report that looks at the techniques and tools used by professional money launderers (PMLs), to help countries identify and dismantle them. The report identifies the key characteristics of the individual PML, the professional money laundering organisation and the professional money laundering network of … Continue Reading

The Law Commission consults on SARs regime

On 20 July 2018, the Law Commission published a consultation paper on anti-money laundering and the Suspicious Activity Reports (SARs) regime. The Law Commission is seeking consultees for their views on a ranged of proposed solutions to remedy the detrimental impact of the SARs regime on the financial sector. The consultation paper has three principal … Continue Reading

EBA publishes final guidelines on fraud reporting under PSD2

On 18 July 2018, the European Banking Authority (EBA) published final guidelines on fraud reporting under the revised Payment Services Directive (PSD2). The guidelines require payment service providers across the EU to collect and report data on payment transactions and fraudulent payment transactions using a consistent methodology, definitions and data breakdowns. The next step is … Continue Reading

FATF papers

On 18 July 2018, the Financial Action Task Force (FATF) published its report to the July 2018 G20 Finance Ministers and Central Bank Governors’ meeting. The report sets out FATF’s ongoing work to fight money laundering and terrorist financing. Such work includes de-risking and money laundering and terrorist financing risks of virtual currencies / crypto … Continue Reading

HM Treasury publishes advisory notice on money laundering controls in overseas jurisdictions

On 11 July 2018, HM Treasury published an advisory notice on money laundering and terrorist financing controls in higher risk jurisdictions. The notice replaces previous advisory notices issued by HM Treasury on the subject. The advisory notice refers to the two statements published by the Financial Action Task Force (FATF) identifying jurisdictions with strategic deficiencies … Continue Reading

FATF Draft Guidance for life insurance and securities sectors on risk-based approaches to AML and CTF begins consultation

  The Financial Action Task Force (FATF) has published two sets of draft guidance for public consultation: The Draft Risk-based approach Guidance for the Life Insurance Sector is aimed at insurers and intermediaries providing life insurance and other investment-related insurance products, as well as countries and their supervisory authorities. The risk-based approach is pivotal to … Continue Reading

Member States’ transposition of the 4MLD

On 25 June 2018, the European Commission published the speaking points from Commissioner Jourova’s (in charge of justice, consumers and gender equality) speech in front of the Special Committee on Financial Crimes, Tax Evasion and Tax Avoidance. In her speaking points Commissioner Jourova states that the transposition by Member States of the 4th Anti-Money Laundering … Continue Reading

5MLD now published in OJ – what are the main changes to the 4MLD?

Background On 19 June 2018, there was published in the Official Journal of the EU (OJ) the Fifth Anti-Money Laundering Directive (Directive 2018/843). The Directive is part of the Commission’s Action Plan of February 2016 to strengthen the EU‘s fight against terrorist financing. It sets out a series of measures to better counter the financing … Continue Reading

Further amendments to JMLSG guidanceFurther amendments to JMLSG guidance

On 18 May 2018, the Joint Money Laundering Steering Group (JMLSG) published revised versions of two of the sectors in Part II of its Guidance – 12: Asset Finance and 17: Syndicated lending – on the prevention of money laundering and the financing of terrorism for the UK financial services industry. The JMLSG state that … Continue Reading

Council adopts 5MLD

On 14 May 2018, the Council of the EU adopted the Fifth Anti-Money Laundering Directive (5MLD). The adoption of the 5MLD follows the European Parliament’s adoption of the Directive on 19 April 2018. The text adopted by the Council is in the same form as that adopted by the European Parliament except for minor drafting … Continue Reading

Commission adopts Delegated Regulation on 4MLD central contact points

On 7 May 2018, the European Commission adopted a Delegated Regulation supplementing the Fourth Anti-Money Laundering Directive (4MLD) regarding regulatory technical standards on the criteria for the appointment of central contact points for electronic money issuers and payment service providers and with rules on their function. The Delegated Regulation is based on the draft regulatory … Continue Reading

ECB letter regarding AML risks

On 3 May 2018, the European Central Bank (ECB) published a letter from its chair, Daniele Nouy, to Sven Giegold MEP. In the letter Ms Nouy discusses money laundering incidents, information exchange regarding money laundering risks and the integration of those risks in ECB prudential supervision. Ms Nouy notes among other things that: there is … Continue Reading

European Parliament adopts MLD 5

On 19 April 2018, the European Parliament issued a press release stating that it had adopted the Fifth Anti-Money Laundering Directive (5MLD). The next step is for the 5MLD to be formally adopted by the Council. Following that it enters into force three days after its publication in the Official Journal of the EU. Member … Continue Reading
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