Tuesday, October 20, 2020

UK Regulator Publishes Thematic Review of Money-Laundering Risks in Capital Markets

-

The U.K. Financial Conduct Authority has published a report on its thematic review assessing money-laundering risks posed to capital markets.

The review involved 19 participants including investment banks, recognised investment exchanges, trade bodies, a custodian bank, clearing and settlement houses, inter-dealer brokers and trading firms.

The report sets out what the FCA found in its review, the AML risks that were identified and fictitious case studies identifying different AML scenarios that firms may use to inform their own procedures.

Read MoreFCA Reveals Money Laundering Probe Into 75 Firms

- Advertisement -

The FCA expects firms to review their AML systems, taking this report into account. It is considering its supervisory approach, including the possibility of utilising data supplied under MiFID II to mitigate money-laundering risks.

Key money laundering risks (and possible mitigating actions) identified in capital markets include:

  • Customer-based risk (as opposed to risks inherent to particular products or asset classes) and lack of visibility up through the customer chain, which may be mitigated through effective customer due diligence;
  • Failures in ongoing monitoring of transactions for potential money-laundering activity that may be improved by, for instance, the convergence of AML and market abuse monitoring systems;
  • Lack of suspicious activity reporting in relation to suspicions of money laundering; and
  • Failures within firms to instill good AML practices amongst staff and provide adequate training; the introduction of the Senior Managers and Certification Regime may improve individual accountability by assessing fitness for certain roles and imposing conduct requirements upon certain employees.

View the FCA’s thematic review.

- Advertisement -
- Advertisement -

MUST READ

Goldman to pay over $2 billion in DOJ’s 1MDB Probe

Goldman Sachs Group Inc. has reached a long-awaited pact with the U.S. Department of Justice to pay more than $2 billion for the bank’s...

Ex-managers of Security firm pleads guilty in Santa Clara County concealed gun permit bribery scandal

Two former managers of a Silicon Valley international security firm pleaded guilty Monday to charges related to a bribery scheme to obtain concealed firearms...

Ohio former House Speaker Larry Householder to stand for reelection amid bribery charges

Republican Rep. Larry Householder’s name will be on the ballot Election Day as the disgraced Ohio lawmaker intends to serve his district for another...

Billionaire Robert Smith to Pay $140 million after admitting to tax evasion

Billionaire Robert Smith will pay about $140 million and acknowledge wrongdoing to end a four-year U.S. tax investigation involving assets held in offshore tax...

Mexico’s ex-army chief arrested in US on charges of drug trafficking, money laundering

Former Mexican Defense Secretary Gen. Salvador Cienfuegos, who led the country’s armed forces for six years under then-President Enrique Peña Nieto, has been arrested...
Advertisement
Advertisement

Latest News

This Week

Brazilian Senator caught hiding cash between his buttcheeks during police raid

Brazilian Senator Chico Rodrigues was caught in a police raid with money hidden between his buttcheeks on Wednesday, a judicial source briefed on the...

Liberian President seeks US help over death of auditors linked to £100m corruption scandal

The suspicious deaths of four finance officials in Liberia have raised fears of a murder plot linked to corruption scandals that include the disappearance...

German prosecutors fine Deutsche Bank $15.9m, drops money laundering probe

German prosecutors said on Tuesday they were dropping a money-laundering investigation against managers at Deutsche Bank DBKGn.DE, over its relations with Danske Bank's DANSKE.CO Estonian subsidiary, citing...

Romania money laundering prevention agency chief resigns over fraudulent diplomas

Laurenţiu Baranga resigned from his job as head of the Office for Money Laundering Prevention as prosecutors opened an investigation concerning his diplomas. He...
Advertisement

Adblock Detected!

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by whitelisting our website.

Enable Notifications    Ok No thanks