Insight

Insight

We look beyond today

  • Are you ready for the FCA Consumer Duty rules coming into force?
    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 […]
  • Economic Crime and Corporate Transparency Bill
    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 […]
  • Top Tips for Financial Crime Trends in the Middle East and Africa
    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 […]
  • Is the Metaverse a cyber-sandbox for criminals?
    The crypto sector has had a rocky ride over the last few weeks. Fears that the Metaverse will prove to be fertile ground for terrorism funding; have all raised question marks about how the sector can be regulated. With the fast growing electronic and digital warfare space, we must begin to study and  understand the impact of the next “big thing” appearing on the horizon of social media platforms: the Metaverse. Metaverse is introduced as a next-generation, 3D virtual platform with new tools and technologies being developed to perform data analytics and other critical analysis on it. What exactly is […]
  • A successful financial crime regime remains elusive however, steps can be taken to address the issues
    Having worked in the industry for several years, I am aware that some senior managers take calculated risks and ignore glaringly obvious money laundering activities for profit. In some cases, relationship managers (RM), senior managers and board members deliberately ignore the MLRO’s advise and do as they wish, all in the name of profit and commission. In my view, the pressure on senior managers from shareholders to turn a profit is the single most significant driver for continuous bank failings to monitor appropriately and effectively detect and report financial crime. This is a very real and present danger to the […]
  • Can Crypto Overcome Its Reputation as a Weak Link in Financial Crime?
    The crypto sector is often painted as the weakest link in the fight against financial crime. More recently, it has been accused of posing a risk to financial stability and compromising investor security with its laissez-faire attitude toward cybersecurity. But if you take the temperature of illicit activity linked to the crypto-asset ecosphere, it throws up some sharp contradictions. It is true that crypto remains the payment mechanism of choice for narcotics and other illicit commodities on the darknet, but as law enforcement continues to reinforce its surveillance of these hawkers, such black markets are declining. Unregulated crypto-asset exchanges continue […]
  • AML in Challenger Banks
    Webinar – Please click above to watch AML in Challenger Banks. Watch the conversation on the recent review by the FCA which declared that challenger banks must improve how they assess financial crime risk. We focused on the FCA’s expectation in the upcoming months and top AML tips for challenger banks including improving how they assess financial crime risk, the adequacy of AML checks when onboarding new customers and how to write a robust Suspicious Activity Report.
  • Financial regulator cautions UK against rushing to create ‘crypto hub’
    Outgoing UK FCA head Charles Randell advises lawmakers not to rush crypto regulation. His statements come after city minister John Glen announced plans to make the U.K. a global crypto hub. Randell said that regulators should consider whether they should be backing the crypto industry at all, following bitcoin’s recent drop. Charles Randell, the 63-year-old lawyer who gained prominence advising the U.K. Treasury during the 2008 financial crisis, has cautioned against the hasty drafting of crypto regulations. Appointed as chairman of the FCA for a five-year term in April 2018, Randell said that regulators need to be realistic when estimating […]
  • FCA review unearths weaknesses in challenger banks’ financial crime controls
    A review by the FCA has declared that challenger banks must improve how they assess financial crime risk. The findings also revealed that some challenger banks were failing to adequately check their customers’ income and occupation also did not have financial crime risk assessments in place. The review, conducted over 2021, identified a rise in the number of Suspicious Activity Reports reported by challenger banks, raising concerns about the adequacy of these banks’ checks when taking on new customers. Challenger banks aim to compete with traditional high street banks using smarter technology and more up-to-date IT systems. Many are recent […]
  • Will you be ready for ‘failure to prevent economic crime’ law when it comes into force?
    The likelihood of a UK ‘failure to prevent economic crime’ (FPEC) law has risen significantly since Russia’s invasion of Ukraine and could have major implications for businesses and their anti-money laundering (AML) frameworks. In March 2022, the government fast-tracked measures to fight financial crime in response to the invasion and the FPEC law is due around June 2022. Meanwhile, the government has promised a more substantive economic crime package in June or July of this year. It’s not clear whether this package will be able to include FPEC law, but the pressure for it has been growing for some time and could […]

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