Tag: Money laundering

Landmark US-UK Data Access Agreement Enters into Force

On 3 October 2022, the Data Access Agreement (DAA) between the UK and US (see our earlier blog here) came into force.  In this blog post we look at this landmark agreement and consider its impact. What is the US-UK Data Access Agreement? Under the new agreement, on receipt of a qualifying lawful order telecommunication … Continue Reading

EBA Guidelines on the use of remote customer onboarding solutions under Article 13(1) of 4MLD

On 22 November 2022, the European Banking Authority (EBA) published a final report on guidelines on the use of remote customer onboarding solutions under Article 13(1) of the Fourth Money Laundering Directive (4MLD). This final report sets out a strategic objective to embrace digital finance for the good of consumers and businesses and identifies EU … Continue Reading

HM Treasury published updated advisory notice on money laundering and terrorist financing controls in high-risk third countries

On 14 November 2022, HM Treasury published an updated advisory notice on money laundering and terrorist financing controls in high-risk third countries. The advisory notice identifies the following countries for which appropriate actions should be taken to minimise the associated risks and these actions may include enhanced due diligence in high risk situations: Albania Barbados … Continue Reading

Germany’s plan to legalise recreational cannabis poses anti-money laundering risks for UK business

Germany has become the latest country to agree on a plan to legalise recreational cannabis use among adults in a move that presents significant opportunities for investments in the EU’s largest economy. The Federal Cabinet has approved the key points paper for the legalisation, however a concrete draft law will only be presented once it … Continue Reading

FATF consults on guidance on beneficial ownership

On 26 October 2022, the Financial Action Task Force (FATF) launched a public consultation on its guidance on beneficial ownership. At the March 2022 Plenary, the FATF adopted amendments to Recommendation 24, and agreed to immediately start the work to update guidance on beneficial ownership with a view to help support the implementation of the … Continue Reading

FATF consults on the revision of Recommendation 25 and its interpretive note on the transparency and beneficial ownership of legal arrangements

On 26 October 2022, the Financial Action Task Force (FATF) launched a public consultation on Recommendation 25 and its interpretive note (R.25/INR.25) on the transparency and beneficial ownership of legal arrangements. The FATF is also considering amending the definition of beneficial ownership in the glossary to provide more clarity regarding legal arrangements. The FATF’s objective … Continue Reading

The new Economic Crime and Corporate Transparency Bill: its plans to reform Companies House and improve policing of cryptoassets

In this post, we summarise the new Economic Crime and Corporate Transparency Bill (the Bill) which was published on 22 September 2022 and the significant reform proposed to the role of Companies House. The Bill proposes giving Companies House improved investigation and enforcement powers and makes changes to strengthen regulators’ powers to seize and detain … Continue Reading

The New Economic Crime Bill and plans to expand the Serious Fraud Office’s investigative Powers

In recent years, the UK government has been seeking to tackle ever-growing financial crime and money laundering. In this post, we summarise the Economic Crime and Corporate Transparency Bill (the Bill) published on 22 September 2022 as well the expansion of the Serious Fraud Office’s (SFO) investigative powers under the Bill in an effort to … Continue Reading

The Economic Crime Corporate and Transparency Bill

On 22 September 2022, the House of Commons published the Economic Crime and Corporate Transparency Bill (the Bill). Background The Bill is effectively the second part of a legislative package to prevent the abuse of UK corporate structures and tackle economic crime. It follows on from the Economic Crime (Transparency and Enforcement) Act 2022, which … Continue Reading

JMLSG publishes new consultation part 1

On 16 September 2022, the Joint Money Laundering Steering Group (JMLSG) published proposed amendments to part 1 of its guidance. The proposed revisions take account The Money Laundering and Terrorist Financing (Amendment)(High-risk Countries) Regulations 2022 and The Money laundering and Terrorist Financing (Amendment)(No.2) Regulations 2022. The following text will be affected: Paragraph 5.5.11 and Annex … Continue Reading

EBA calls for more proactive engagement between supervisors in AML/CFT colleges

On 1 September 2022, the European Banking Authority (EBA) published its second report on the functioning of anti-money laundering and counter-terrorist financing (AML/CTF) supervisory colleges in the EU. The Fifth Anti-Money Laundering Directive (5AMLD) introduced an explicit requirement for competent authorities to cooperate with each other but did not provide a framework of how this … Continue Reading

Wolfsberg Group best practice guidance on transaction monitoring RFIs

On 23 August 2022, the Wolfsberg Group published best practice guidance on requests for information (RFIs) initiated as a result of transaction monitoring. An RFI is used when a correspondent (or any other provider of payment services) is seeking to understand the background of a transaction that has been processed through an account or relationship … Continue Reading

JMLSG publishes revisions to Part II Sector 11 (Motor Finance) Annex 11-I

On 12 August 2022,  the Joint Money Laundering Steering Group (JMLSG) published revisions to Part II Sector 11 Annex 11- I. This is the Finance and Leasing Association standard for the prevention of financial crime and terrorist financing in motor finance credit application processing. Appendix 1 outlines common sales channels available for obtaining motor finance … Continue Reading

Cryptoasset providers: Impact of the amendments to the MLRs 2017

In June, HM Treasury issued its response to its October 2021 consultation on amendments to the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs 2017). The response contained a number of updates to the MLRs 2017 which, for the most part, come into force on 1 September 2022. … Continue Reading

The Money Laundering and Terrorist Financing (Amendment) (No. 2) Regulations 2022

On 21 July 2022, there was published The Money Laundering and Terrorist Financing (Amendment) (No. 2) Regulations 2022. Unless otherwise stated, the Regulations come into force on 1 September 2022. The Regulations make a number of changes to The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs 2017) … Continue Reading

Upper Tribunal considers the application of the MLRs to a cryptoasset exchange provider and comments on FCA procedures

Vladimir_Consulting_Limited_v_The_Financial_Conduct_Authority.pdf (publishing.service.gov.uk) Introduction The business of Vladimir Consulting Limited (VCL) involved trading in cryptocurrency such as bitcoin on peer-to-peer exchanges which provide a market place for sellers and buyers of cryptocurrency.  The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs) were amended with effect from 10 January 2020 … Continue Reading

ECB speech at the use of AI to fight financial crime conference

On 13 July 2022, Elizabeth McCaul, Member of the Supervisory Board of the European Central Bank (ECB) delivered a speech at the conference on “The use of artificial intelligence to fight financial crime”. Key points in the speech include: Deficiencies in a bank’s anti-money laundering / countering the financing of terrorism (AML/CFT) framework are often … Continue Reading

The Money Laundering and Terrorist Financing (High-Risk Countries) (Amendment) (No.2) Regulations 2022

On 12 July 2022, there was published on legislation.gov.uk The Money Laundering and Terrorist Financing (High-Risk Countries) (Amendment) (No.2) Regulations 2022 together with an explanatory memorandum. The Regulations amend the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (the MLRs 2017) by substituting the List of High-Risk Third Countries … Continue Reading

FCA publishes decision notice regarding a fine of £5.8 million for Ghana International Bank Plc in connection with failings in its anti-money laundering controls over its correspondent banking activities

Anti-money laundering and the prevention of financial crime continues to be a key focus for the FCA, which reiterated in its most recent Business Plan its commitment to continue to use its enforcement powers to pursue those committing financial crime and their enablers.   According to the notice published on 23 June 2022, the FCA has … Continue Reading

HM Treasury updated advisory notice on money laundering and terrorist financing controls in high-risk third countries.

On 4 July 2022, HM Treasury published an updated advisory notice on money laundering and terrorist financing controls in high-risk third countries. The advisory notice explains that the Money Laundering and Terrorist Financing (High-Risk Countries) (Amendment) (No.2) Regulations will come into force on 11 July 2022. These Regulations will substitute the list of high-risk third … Continue Reading

FATF targeted update on implementation of standards on VAs and VASPs

On 30 June 2022, the Financial Action Task Force (FATF) issued a targeted update concerning the implementation of its Standards on virtual assets (VAs) and virtual asset service providers (VASPs), with a focus on FATF’s Travel Rule. The FATF has found that many countries need to strengthen understanding of money laundering / terrorist financing risks … Continue Reading

HM Treasury policy paper: Review of the UK’s AML/CFT regulatory and supervisory regime

On 24 June 2022, HM Treasury published two post-implementation reviews and a forward looking review of the UK’s anti-money laundering and countering the financing of terrorism (AML/CFT) regime. The post implementation reviews fulfill HM Treasury’s statutory obligations and cover the Money Laundering Regulations 2017 (MLRs 2017) and the Office for Professional Body AML Supervision Regulations … Continue Reading

Anti-money laundering: Regulation Around the World

In the latest instalment of our Regulation Around the World series, financial services partners in 13 jurisdictions provide an update on anti-money laundering developments. Our global updater is accompanied by further analysis and insights in our Regulation Around the World podcast which is available now to stream and download. The podcast features speakers from the … Continue Reading

Outcomes FATF Plenary, 14-17 June 2022

On 17 June 2022, the Financial Action Task Force (FATF) published the outcomes of its plenary on 14 to 17 June 2022. Delegates from over 200 jurisdictions participated in the plenary and the FATF expressed its deepest sympathies for the people of Ukraine, and as a result of Russia’s invasion, the FATF agreed to severely … Continue Reading
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