On 8 February 2024, the FCA published a statement confirming that the Upper Tribunal (UT) had decided not to suspend restrictions that the Financial Conduct Authority (FCA) has placed on e-money firm Nvayo Limited (Nvayo). These restrictions, which appear on the FCA’s register, include restrictions on the business the firm can do. They were imposed … Continue Reading
On 14 March 2024, the European Commission (Commission) adopted a Delegated Regulation amending Delegated Regulation 2016/1675 as regards adding Kenya and Namibia to the table in point I of the Annex and deleting Barbados, Gibraltar, Panama, Uganda and the United Arab Emirates from that table. Article 9(2) of the Fourth Anti-Money Laundering Directive (4MLD) empowers … Continue Reading
On 5 March 2024, the Financial Conduct Authority (FCA) issued a warning to firms about common failings it has identified in firms’ financial crime controls. It wrote to CEOs of Annex 1 firms, setting out the findings from its recent assessments of how firms are complying with anti-money laundering (AML) regulations. The letter warns that … Continue Reading
On 12 March 2024, the Financial Action Task Force (FATF) published guidance on beneficial ownership and transparency of legal arrangements. The guidance, which is non-binding, aims to assist stakeholders from public and private sectors that regulate, supervise, enforce, form, manage, or administer trusts or similar legal arrangements. It focuses on the Recommendation 25 requirements and … Continue Reading
On 11 March 2024, HM Treasury (HMT) published a consultation on improving the effectiveness of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (the MLRs), which place requirements onto a range of businesses to identify and prevent money laundering and terrorist financing. HMT committed to consulting on changes … Continue Reading
On 5 March 2024, the Foreign, Commonwealth and Development Office published a post-legislative scrutiny memorandum on the Sanctions and Anti-Money Laundering Act 2018 (SAMLA). The memorandum provides a summary and preliminary assessment of the provisions and implementation of the SAMLA. SAMLA, which received Royal Assent on 23rd May 2018, was enacted to provide new legal … Continue Reading
Money laundering is a significant risk for many firms that conduct business in the UK, but the way this risk materialises and crystalises differs depending upon, amongst other things, the nature of a firm’s business. Due to the differing risk profiles across sectors, firms must tailor their systems and controls to be able to identify, … Continue Reading
On 29 February 2024, the Economic Crime and Corporate Transparency Act 2023 (Commencement No. 2 and Transitional Provision) Regulations 2024 were made. These Regulations are the second commencement regulations made under the Economic Crime and Corporate Transparency Act 2023. They commence certain provisions in Parts 1 to 5 of that Act.… Continue Reading
On 28 February 2024, the Financial Markets Standards Board (FMSB) published for consultation a transparency draft of a standard for client onboarding documentation and processes. The draft identifies current inefficiencies within the UK’s regulatory requirements and guidance for ‘Know Your Client’ (KYC) due diligence. The shortcomings highlighted include: To remedy the inefficiencies, the FMSB suggests: … Continue Reading
On 26 February 2024, the Financial Action Task Force (FATF) announced it is considering revisions to Recommendation 16 (R.16), its Interpretive Note (INR.16) and the related glossary of specific terms, to adapt them to the changes in payment business models and messaging standards. In the press release, the FATF outlines how R.16 and INR.16 must … Continue Reading
In our latest Regulation Tomorrow podcast, Senior Knowledge Lawyer Catherine Pluck is joined by Senior Associate Rebecca Dulieu and Associate Lizzie Cox, both of whom specialise in regulatory investigations and enforcement, to discuss reporting obligations under the Proceeds of Crime Act 2002 (POCA), in particular how to draft and submit good quality suspicious activity reports. … Continue Reading
On 23 January 2024, the Money Laundering and Terrorist Financing (High-Risk Countries) (Amendment) Regulations 2024 (the statutory instrument (SI)) was published along with an explanatory memorandum. The purpose of the SI is to amend regulation 33(3)(a) of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (the MLRs) to … Continue Reading
On 22 January 2024 the House of Commons Treasury Committee published the transcript from a meeting on 17 January at which it heard oral evidence to form part of the ‘Sexism in the City’ inquiry. This inquiry is examining the barriers faced by women in financial services and the progress made in removing gender pay … Continue Reading
On 17 January 2024, the European Parliament and Council of the EU (Council) reached a provisional agreement on parts of the anti-money laundering (AML) package that aims to protect EU citizens and the EU’s financial system against money laundering (ML) and terrorist financing (TF). Under the new package, all rules applying to the private sector … Continue Reading
On 16 January 2024, the European Banking Authority (EBA) released a final report containing guidelines which amend its existing guidelines on money laundering / terrorist financing (ML/TF) risk factors so that they extend to crypto-asset service providers (CASPs). The guidelines will provide a common understanding of ML/TF risks associated with CASPs and the steps CASPs … Continue Reading
On 18 December 2023, the Council of the EU issued a press release stating that it had reached a common understanding on the process for selecting the seat of the future European authority for countering money laundering and terrorist financing (AMLA). The co-legislators have agreed on the principle of organising joint public hearings to allow … Continue Reading
On 14 December 2023, statutory instrument 2023 No. 1371 (SI 2023/1371) – the Money Laundering and Terrorist Financing (Amendment) Regulations 2023 (the SI) – was published, along with an explanatory memorandum. The SI amends the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (the MLRs) to clarify the explicit … Continue Reading
On 13 December 2023, the European Commission (Commission) published Commission Delegated Regulation (EU) of 12.12.2023 amending Delegated Regulation (EU) 2016/1675 as regards the deletion of the Cayman Islands and Jordan from the table in point I of the Annex. Delegated Regulation 2016/1675 is provided for under the Fourth Money Laundering Directive (4MLD) and identifies in … Continue Reading
On 13 December 2023, the Council of the EU announced that it had reached provisional agreement with the European Parliament as regards a proposed Regulation establishing a new EU anti-money laundering authority (AMLA). On 20 July 2021, the European Commission issued legislative proposals designed to strengthen the EU’s rules on anti-money laundering and countering the … Continue Reading
On 5 December 2023, HM Treasury (HMT) published the Money Laundering and Terrorist Financing (High-Risk Countries) (Amendment) (No.2) Regulations 2023 (SI 2023/1306). This statutory instrument amends the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (S.I. 2017/692) (the MLRs) by substituting the List of High-Risk Third Countries (in respect … Continue Reading
On 27 November 2023, the European Banking Authority (EBA) published a final report containing updated guidelines on risk-based supervision. The guidelines have been amended so that they extend to anti-money laundering and countering the financing of terrorism (AML/CFT) supervisors of crypto-asset service providers (CASPs) as defined in the Regulation on markets in crypto-assets (MiCA). Article … Continue Reading
On 24 November 2023, the European Banking Authority (EBA) issued a public consultation on new guidelines on preventing the abuse of funds and certain crypto-asset transfers for money laundering and terrorist financing purposes. Regulation (EU) 2023/1113 on information accompanying transfers of funds and certain crypto-assets recasts Regulation (EU) 2015/847 and extends its scope to the … Continue Reading
Introduction As anticipated in our previous horizon scan (see here), the end of 2023 has brought about significant developments in financial crime enforcement and a real focus on fraud. Looking ahead to 2024, we predict that developments affecting organisations doing business in the UK will include: a focus from organisations on fraud, in particular preparing … Continue Reading
On 16 November 2023, the Financial Action Task Force (FATF) updated its best practices on combating the abuse of non-profit organisations (NPOs). The update follows the revisions that the FATF made earlier this year to Recommendation 8 that aim to protect NPOs from potential terrorist financing abuse through the effective implementation of risk-based measures. For … Continue Reading