United Kingdom

Topic: Money laundering

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Upcoming webinar: Investigations in EMEA – Horizon scanning

On Tuesday 16 April 2024, please join us for a webinar where our team from across EMEA will discuss the key recent and upcoming trends in financial crime legislation and regulatory enforcement in the EU, UK and Singapore. This webinar will highlight important changes to anti-money laundering regulation and wider financial crime legislation in the … Continue Reading

Status of implementation of Recommendation 15 by FATF Members and jurisdictions with materially important VASP activity

On 28 March 2024, the Financial Action Task Force (FATF) published a table setting out the status of the implementation of Recommendation 15 by FATF members and other jurisdictions with the most materially important virtual asset service provider activity. The table follows a stocktake of current levels of implementation across the global network. FATF notes … Continue Reading

Wolfsberg Principles for Auditing Financial Crime Risk Management

On 27 March 2024, the Wolfsberg Group (Group) published Principles for Auditing Financial Crime Risk Management (FCRM) using the Wolfsberg Factors (Factors) which were published in 2019. The Group notes that internal audit (IA), an independent function within a financial institution (FI), constitutes the third line of defence and plays an important role in assessing … Continue Reading

Wolfsberg Group statement on countering terrorist financing

On 20 March 2024, the Wolfsberg Group published a statement on countering terrorist financing (CTF).  The statement replaces the Wolfsberg Group’s first statement on the topic published in 2002. It describes the role of financial institutions in CTF and the key controls which seek to mitigate and manage the risk of a financial institution being … Continue Reading

Upper Tribunal refuses e-money firm’s application for suspension of FCA requirements

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

Changes to the list of high-risk countries under 4MLD – Kenya and Namibia added and Barbados, Gibraltar, Panama, Uganda and the UAE removed

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

FCA Dear CEO letter warning firms about common failings identified in AML frameworks

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

FATF guidance for a risk-based approach for beneficial ownership and transparency of legal arrangements

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

HMT consults on improving the effectiveness of the Money Laundering Regulations

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

Government publishes post-legislative scrutiny memorandum on the Sanctions and Anti-Money Laundering Act 2018

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

New briefing note – Financial Crime Spotlight: Money Laundering Controls in the Real Estate Sector

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

The Economic Crime and Corporate Transparency Act 2023 (Commencement No. 2 and Transitional Provision) Regulations 2024

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

FMSB transparency draft – Standard for client onboarding documentation and processes

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

FATF consults on Recommendation 16 on Payment Transparency

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

New Regulation Tomorrow Plus podcast: Submitting better SARs – A guide for MLROs and in-house teams

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

The Money Laundering and Terrorist Financing (High-Risk Countries) (Amendment) Regulations 2024 are published

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

Treasury Commission publishes oral evidence transcript from Sexism in the City inquiry

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

Council of the EU and European Parliament strike deal on stricter AML rules

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

EBA extends guidelines on ML/TF risk factors to crypto-asset service providers

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

Anti-money laundering: Council and Parliament agree on procedure to select seat for new authority

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

The Money Laundering and Terrorist Financing (Amendment) Regulations 2023 are published

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

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

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

Council and European Parliament agree to create new money laundering watchdog

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

HMT publishes the Money Laundering and Terrorist Financing (High-Risk Countries) (Amendment) (No.2) Regulations 2023

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
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