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Topic: Money laundering

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Commission adopts MLD4 Delegated Regulation on high risk third countries

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

JMLSG announces 2019 workplan

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

Commission adopts Delegated Regulation containing RTS under MLD4

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

Council of EU prioritising AML component of ESFS reform package

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

JMLSG revisions to AML and CTF guidance

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

Council of EU Decision incorporating MLD4 into EEA Agreement published in OJ

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

Link between money laundering and human trafficking (estimated to generate c.US$150bn of criminal proceeds annually) explored in new report by FATF and APG

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

The Money Laundering and Terrorist Financing (Miscellaneous Amendments) Regulations 2018

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

Lloyd’s of London announces that it does not consider insuring Canadian cannabis risks a breach of UK money laundering legislation

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

ECB opinion on amended proposal making the EBA the sole EU authority tackling money laundering

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

UK’s measures to combat money laundering and terrorist financing

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

Council of the EU outcomes on AML action plan

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

Combating Money Laundering Directive published in OJ

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

AML update: what you may have missed

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

ESAs consult on guidelines for cooperation between authorities under 4AMLD

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

FATF Annual Report 2017-18

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

FATF guidance on risk-based approach for securities sector

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

HMT advisory notice regarding money laundering and terrorist financing controls in overseas jurisdictions

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

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
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