Help! I’m a new MLRO – Due diligence – You should consider auditing your procedures in relation to due diligence and whether they are actually being followed. Some questions you may wish to consider include: Have you identified the areas in which due diligence investigations are required? If you allow exemptions for due diligence, are […]

Seven steps to SARs success – part VII of the Proceeds of Crime Act 2002 (POCA) imposes a reporting regime which is complex and, at times, confusing. Failure to comply may amount to a criminal offence. Solicitors trying to decipher the different disclosure obligations set out in Part VII may find it useful to remember […]

FSA fines firm and its director/compliance officer over risk management failings – The FSA has fined Accendo Markets Ltd (Accendo) £56,000 (including a 20 per cent discount) for failing to have adequate risk management systems in place when providing advice to customers on contracts for difference (CFDs) contrary to Principles 3 and 9 of the […]

Revised and enhanced identification checking process from 28 May 2012 – On the 28 May, the Criminal Records Bureau (CRB) introduced new guidelines for identity (ID) checks, which apply to all CRB applications. The new guidelines have been introduced to strengthen the checking process, making it more difficult for applicants with previous criminal records to […]

Analysis of FSA AML FINE Habib Bank & MLRO – FSA fines bank and its former MLRO for failure to comply with anti-money laundering requirements – In May 2012 the FSA issued Final Notices fining Habib Bank AG Zurich (“Habib”) £525,000 for failure to take reasonable care to establish and maintain adequate anti-money laundering (“AML”) […]

A mixed report for money laundering officers – Last week saw mixed fortunes for the individuals within financial institutions who act as Money laundering Reporting Officers (“MLROs”) and who oversee anti-money laundering (“AML”) controls. The High Court has rejected a long running challenge by former customers to a bank’s decisions to make Suspicious Activity Reports […]

SOE AND PEP CLASSIFICATION – Managing and avoiding regulatory, reputational and financial risk is a significant challenge for institutions around the world. Best practice compliance requires close scrutiny of customers, counterparties and partners, especially where these have a connection to some kind of political office. Politically Exposed Persons (PEPs) need to be subjected to a […]

Swiss SARs jump by 40 percent following Arab Spring fallout – The number of suspicious activity reports (SARs) filed by Swiss banks and other financial institutions jumped by 40 percent last year, largely prompted by the fallout from the Arab Spring. The total sums included in the reports reached a record high of CHF3 billion, […]