Banking giant UBS will buy its ailing rival Credit Suisse in a snap deal brokered by Swiss authorities to avoid further chaos in markets after a series of high-profile financial failures. Swiss market watchdog Finma approved the takeover, which came after frantic talks between bank bosses and ministers desperate to secure a deal before nervous investors return to trading on Monday morning. UBS, a Switzerland-based international investment bank, will pay 3 billion francs (£2.66bn) to acquire its smaller rival – far below the price that would have been expected in less urgent circumstances. Negotiations were being held in the wake […]

Dear CEO/Director, Firms authorised or registered under the Payment Services Regulations 2017 (“PSRs”)and the Electronic Money Regulations 2011 (“EMRs”) such as Payment Institutions (“PIs”),Electronic Money Institutions (“EMIs”) and Registered Account Information Service Providers(“RAISPs)” to help them implement and embed the Consumer Duty effectively. For many firms, meeting the Duty will require a significant shift in culture and behaviour. FCArecognises that the implementation of the Duty comes at a challenging time. However, the FCAbelieves that embedding the Duty effectively will help payments firms continue to build trustamongst consumers in using the expanding range of products and services and enable thesector to […]

Developments to the UK criminal liability regime for corporates are expected to hit the statute books in 2023, with the introduction of new “failure to prevent” offences. As we saw with the introduction of the “failure to prevent bribery” offence under section 7 of the Bribery Act 2010, any such expansion of the “failure to prevent” regime will likely have far-reaching, and potentially seismic, consequences. Reform to the UK corporate liability regime has been long discussed and promised, with prosecutors arguing that the current law – requiring them to prove that those individuals with the necessary “directing mind and will” […]

The collapse of FTX along with multiple firms accompanied by increasing levels of financial crime has provided the catalyst for the UK and other world governments to seek greater regulation of the crypto sector. The front runners on new moves to impose more robust crypto regulations are the US and UK in an attempt to curb the sector’s vulnerability to financial crime.  According to the Financial Conduct Authority (FCA) 85% of crypto firms were unable to demonstrate that they could meet the minimum standards required for registration under the FCA’s anti-money laundering and counter-terrorist financing regime. This led to the […]

The UKFIU has published the 2022 Suspicious Activity Reports (SARs) Annual Report, which features statistics covering the years 2020-21 and 2021-22. The latest report reveals another record year with 901,255 SARs received and processed (a 21% increase on the previous year). In addition, £305.7M denied to suspected criminals as a result of Defence Against Money Laundering (DAML) requests (a 120.6% increase on the £138.6M denied in 2020-21). It is worth noting that whilst the increase in seized suspected criminal funds is an improvement from last year, there is so much more to be done. I know from my own personal experience that […]

From January 05, 2023, the £250 threshold amount specified in section 339A of the Proceeds of Crime Act has increased to £1,000. The threshold amount is the value of criminal property below which a bank or similar firm (a deposit-taking body, electronic money or payment institution) can carry out a transaction, in operating an account for a customer, without committing one of the main money laundering offences in sections 327 to 329 of POCA. Further guidance on the current threshold, and submitting better quality SARs more generally, can be found here.  https://www.nationalcrimeagency.gov.uk/who-we-are/publications/446-guidance-on-submitting-better-quality-sars-1/file

As the economic outlook around the world steadily worsens, the one area that is guaranteed to see growth in 2023 is fraud. So, this paper focuses on the ever-present threat of frauds and scams from criminal elements who use deception in its many forms to dishonestly make personal gain at the expense of their victims. Fraud is not a possibility; it is a reality so financial institutions (FI) must become proficient on how to deal with several suspicious incidents on a permanent basis. Senior management must establish systems and controls to prevent or detect fraud, errors, and weaknesses of internal […]

With the deadline to have a plan on how your institution will comply with the new FCA’s Consumer Duty rules approaching next Monday, I thought it might be useful to share a summary of 7 things firms should be doing now. Firms should have finalised their implementation plan and be in the process of rolling out Board briefing on the Consumer Duty requirements and expectations. In its previous consultations, the FCA stated that Boards must review, at least annually, an assessment of whether their firm is delivering good consumer outcomes in line with the Duty and approve plans to address […]

Key Highlights The Economic Crime and Corporate Transparency Bill will aim to deliver: The bill aims to make Companies House a custodian of more reliable data concerning companies and other UK registered entities such as limited liability partnerships (LLPs) and limited partnerships (LPs). The bill will broaden the powers of Companies House to make it a more active gatekeeper over company creation. This would include new powers to check, remove or decline information submitted to, or already on, the register. The register of overseas entities will be amended to maintain consistency with changes to the Companies Act 2006. New exemptions […]

Understanding emerging risks is the single most important tip in preventing financial crime. An overreliance on process and technology without proper investment in understanding risks and people managing those risks is the root cause of most problems. Applying an effective risk-based approach will help prioritise and solve most problems; not create new ones. Stamping out “box ticking” compliance, applying bespoke compliance solutions in line with risk appetite and considering culture and operating environment is critical in mitigating risk. Artificial intelligence and machine learning tools, if properly tuned and aligned to the business will help with mitigating risks. Hands on training […]