United Kingdom

Topic: Money laundering

Subscribe to Money laundering RSS feed

FMLC response to changes to the Trust Registration Service under 5MLD

On 21 February 2020, the Financial Markets Law Committee (FMLC) published its response on two particular aspects of HM Treasury’s and HM Revenue and Custom’s joint consultation on the Fifth Money Laundering Directive (5MLD) – trusts in financial markets and legal entity identifiers (LEIs). The FMLC notes that questions 1 and 2 of the joint … Continue Reading

Commission sends AML letters of formal notice to 8 member states

On 12 February 2020, the European Commission (Commission) published a press release outlining the key infringement decisions it has taken in February 2020. Among other things, the Commission has sent letters of formal notice to 8 member states urging them to transpose the Fifth Anti-Money Laundering Directive (5MLD). The member states are: Cyprus, Hungary, the … Continue Reading

Commission consults on strengthening AML framework

On 12 February 2020, the European Commission (Commission) published a roadmap for a proposed communication highlighting the areas in which it intends to focus on to address deficiencies in the EU’s anti-money laundering (AML) framework. The Commission published an analysis of money laundering scandals in July 2019 which illustrated the cross-border nature of money laundering, … Continue Reading

EBA report on competent authorities approach to AML/CTF banking supervision

On 5 February 2020, the European Banking Authority (EBA) published a report on competent authorities’ approaches to anti-money laundering and countering the financing of terrorism (AML/CFT) supervision of banks. The report summarises the findings from the first year of ongoing reviews of all competent authorities responsible for AML/CFT supervision of banks in the EU. In … Continue Reading

EBA to update AML and CTF risk factor guidelines

On 5 February 2020, the European Supervisory Authorities (ESAs) jointly published a consultation paper seeking to revise the guidelines that set out factors that firms should consider when assessing the money laundering and terrorist financing (ML / TF) risk associated with their business, and with a business relationship or an occasional transaction with any natural … Continue Reading

JMLSG consults on changes to anti-money laundering guidance

On 4 February 2020, the Joint Money Laundering Steering Group (JMLSG) published the text of proposed revisions to Parts I, II and III of its guidance on the prevention of money laundering and the financing of terrorism for the UK financial services. The proposed revisions take account of The Money Laundering and Terrorist Financing (Amendment) … Continue Reading

HM Treasury responds to consultation on implementing MLD5

Introduction On 24 January 2020, HM Treasury (HMT) published its response to the feedback it received on its consultation on the transposition of the EU Fifth Money Laundering Directive (5MLD). For further information on the consultation, please see our previous blog here. Points to note in the HMT response include: Cryptoassets The 5MLD definition of … Continue Reading

5MLD – Infringement proceedings on the horizon

On 21 January 2020, the European Commission published the opening remarks of Executive Vice-President Valdis Dombrovskis at the ECOFIN press conference. Among other things, Mr Dombrovskis notes that by 10 January 2020, Member States should have transposed the Fifth Anti-Money Laundering Directive. However, there are concerns that some Member States have not yet transposed the … Continue Reading

Global anti-money laundering and sanctions compliance survey

An increasingly globalised business environment, together with technological innovation, political uncertainty and ongoing regulatory change, present a number of challenges for financial institutions when it comes to protecting themselves against financial crime. Our global anti-money laundering and sanctions compliance survey will explore how financial institutions across the globe are managing their compliance programs in light of the … Continue Reading

FCA webpage on the Money Laundering and Terrorist Financing (Amendment) Regulations 2019

On 23 December 2019, the FCA published a new webpage highlighting the changes that the Money Laundering and Terrorist Financing (Amendment) Regulations 2019 (2019 Regulations) make to the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017). The FCA webpage notes in particular that the 2019 Regulations amend: … Continue Reading

Money Laundering and Terrorist Financing (Amendment) Regulations 2019

On 20 December 2019, there was published on the legislation.gov.uk website, the Money Laundering and Terrorist Financing (Amendment) Regulations 2019 (the Regulations), together with an explanatory memorandum. The Regulations are being made to amend the UK’s existing anti-money laundering and counter-terrorist financing (AML/CTF) legislation, namely the Money Laundering, Terrorist Financing and Transfer of Funds (Information … Continue Reading

ESAs final report on joint guidelines on cooperation and information exchange between national supervisors under 4MLD

On 16 December 2019, the Joint Committee of the European Supervisory Authorities (ESAs) published a final report containing joint guidelines on cooperation and information exchange between national competent authorities (NCAs) supervising credit and financial institutions under the Fourth Anti-Money Laundering Directive (4MLD). The guidelines establish colleges of anti-money laundering/counter terrorist financing (AML/CTF) supervisors for the … Continue Reading

Updated FCA webpage – crypto-assets and AML / CTF regime

On 12 December 2019, the FCA updated its webpage on the new anti-money laundering (AML) and counter-terrorist financing (CTF) regime for crypto-assets. From 10 January 2020, the FCA will become the AML / CTF supervisor of UK crypto-asset businesses under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, … Continue Reading

FATF speech

On 12 December 2019, the Financial Action Task Force (FATF) published a speech by its Executive Secretary, David Lewis, at the 7th International Anti-Money Laundering and Compliance Conference. Key messages in the speech include: evaluation and follow-up processes will continue to be at the centre of what the FATF does. This year the FATF started … Continue Reading

New FCA webpage – cryptoassets and AML / CTF regime

On 25 October 2019, the FCA published a new webpage concerning its future role as the anti-money laundering and counter terrorist financing (AML / CTF) supervisor of UK cryptoasset businesses under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, as amended (MLRs). The new webpage describes the scope … Continue Reading

FATF best practices on beneficial ownership for legal persons

On 24 October 2019, the Financial Action Task Force (FATF) published a paper setting out best practices on beneficial ownership for legal persons. The paper identifies the most common challenges that countries face in ensuring that the beneficial owner(s) of legal persons is identified, and suggests key features of an effective system. The paper also … Continue Reading

FMLC paper on issues of legal uncertainty regarding exchange tokens

On 23 October 2019, the Financial Markets Law Committee (FMLC) published a paper on issues of legal uncertainty in respect of exchange tokens. In the paper, the FMLC provides an overview of the latest regulatory and non-legislative developments with regards to virtual currencies. The paper also explores the possible characterisation of exchange tokens as property, … Continue Reading

Updated HMT advisory notice on money laundering and terrorist financing controls in higher risk jurisdictions

On 21 October 2019, HM Treasury updated its advisory notice regarding the risks posed by unsatisfactory money laundering and terrorist financing controls in certain overseas jurisdictions. The advisory notice provides that: the Democratic People’s Republic of Korea should be considered as high risk and firms should apply counter measures and enhanced due diligence measures in … Continue Reading

FATF public statement DPRK and Iran

On 18 October 2019, the Financial Action Task Force (FATF) issued a statement concerning: Democratic People’s Republic of Korea (DPRK). The FATF reaffirms its 25 February 2011 call on its members and urges all jurisdictions to advise their financial institutions to give special attention to business relationships and transactions with the DPRK, including DPRK companies, … Continue Reading

FATF update

On 18 October 2019, the Financial Action Task Force (FATF) issued a statement confirming that as part of its mutual evaluations of its members anti-money laundering and counter terrorist financing (AML / CFT) regimes it will assess the implementation of its standards to address the money laundering and terrorist financing of virtual assets. FATF members … Continue Reading

FCA consults on recovery of costs of supervising cryptoassets firms under AML regulations

On 15 October 2019, the FCA published Consultation Paper 19/29: Recovery of costs of supervising cryptoasset businesses under the anti-money laundering regulations – fees proposals (CP19/29). From 10 January 2020, the FCA will become the anti-money laundering and counter terrorist financing (AML/CTF) supervisor for cryptoassets businesses. In CP19/29 the FCA sets out its proposals for … Continue Reading

HM Treasury approves the latest amendments to Chapter 17 of the JMLSG Guidance

On 10 October 2019, the Joint Money Laundering Steering Group (JMLSG) announced that HM Treasury had approved the revised guidance on syndicated lending set out in Part II, Chapter 17 of the JMLSG guidance. The amendments to the JMLSG guidance clarify that market participants entering into a syndicated loan transaction, whether in the capacity of … Continue Reading

Commission issues non-paper on key elements of a refined methodology for identifying high-risk third countries under Directive (EU) 2015/849

On 1 October 2019, the General Secretariat of the Council of the EU (the Council) published a European Commission (Commission) non-paper on key elements of a refined methodology for identifying high-risk third countries under Directive (EU) 2015/849 (the Fourth Anti-Money Laundering Directive). Following the rejection by the Council of the most recent Delegated Regulation identifying … Continue Reading

ESAs highlight money laundering and terrorist financing risks in the EU financial sector

On 4 October 2019, the Joint Committee of the European Supervisory Authorities (ESAs) published its second opinion on the risks of money laundering and terrorist financing affecting the EU’s financial sector. In drafting the opinion, the ESAs took into account the views expressed by Member State competent authorities (NCAs) through a questionnaire related to money … Continue Reading
LexBlog