Financial crime Definition

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What does Financial crime mean?

The term 'financial crime' is defined in section 1H(3) of the financial services and markets act 2000 (fsma 2000) as any kind of conduct'>criminal conduct relating to money or to financial services or markets, including any offence involving: • fraud or dishonesty • misconduct in, or misuse of information relating to, a financial market, or • handling the proceeds of crime This definition is to be construed widely and would include offences relating to fraud, tax evasion, financial sanctions, bribery, corruption, money laundering, or even breaches of data security as well as financial services offences.

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EU and UK Wire Transfer Regulations—timeline to 31 December 2023 [Archived]

EU and UK Wire Transfer Regulations—timeline to 31 December 2023 [Archived] ARCHIVED: This Practice Note is archived and is no longer maintained. For UK developments see: AML/CTF/CPF—timeline of UK legal and regulatory developments for financial services. For EU developments see: AML/CTF/CPF—timeline of EU legal and regulatory developments for financial services. This timeline outlines the developments in relation to the Wire Transfer Regulation (Regulation (EU) 2015/847) (also known as the Funds Transfer Regulation (FTR)), its predecessor the Wire Transfer Regulation (Regulation (EU) 1781/2006) and the Recast EU WTR2 (also referred to as the Recast EU Transfer of Funds Regulation (EU FTR2)) which entered into force in June 2023 and applies from 30 December 2024 and forms part of the wider European Commission 2021 legislative package overhauling the European Union’s AML/CTF legal framework and regulatory requirements. It further includes the onshoring of EU WTR2 through the Retained Regulation (EU) 2015/847 (UK WTR2) and relevant updates brought in through the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017,...

FCA consultation paper tracker—2017 [Archived]

FCA consultation paper tracker—2017 [Archived] This tracker sets out the consultation papers published by Financial Conduct Authority (FCA) in 2017, along with the publication of any subsequent rules and guidance. For details of FCA consultation papers from other years, see: FCA consultation paper tracker. For details of Prudential Regulation authority (PRA) and Financial Services Authority (FSA) consultation papers, see: • PRA consultation paper tracker • FSA consultation paper tracker [Archived] Topic area Consultation Paper Description Publication date End of consultation period Policy Statement/ Handbook Notice Payment systems and services CP17/44: PSR regulatory fees The Payment Systems Regulator (PSR) and the FCA published a consultation and decision paper setting out their policy decision on the way they will collect PSR regulatory fees in 2018/19 and in subsequent years, and consulting further on the proposed fees allocation method. 15 December 2017 26 January 2018 Handbook Notice 53 (23 March 2018)CP18/8 (23 March 2018) Consumer credit, mortgage and home finance CP17/43: Credit card market study: Persistent debt...

SAR reporting—flowchart

SAR reporting—flowchart This Flowchart illustrates the process of deciding whether an external suspicious activity report (SAR) must be made to the National Crime Agency (NCA). It covers both the situation where a member of staff: • refers a concern, and • submits an internal SAR to the nominated officer See further Practice Notes: Making a SAR and obtaining a defence or consent, or for law firms Making a SAR and obtaining a defence or consent—law firms and Precedent: Submitting a SAR—information gathering sheet for reporters. SAR reporting—flowchart Further information The flowchart touches on a number of complex areas of law. Legal professional privilege is an especially complex area of law. If you are in any doubt as to whether LPP or privileged circumstances apply, you should seek specialist legal advice. The following table is intended to help you navigate to relevant guidance. Area General guidance Guidance for law firms POCA 2002 See Practice Note: Proceeds of Crime Act 2002—key information for businesses See

Anti-bribery and corruption—agent/intermediary due diligence flowchart

Anti-bribery and corruption—agent/intermediary due diligence flowchart This Flowchart can be used as a guide for staff involved in the anti-bribery and corruption due diligence process for appointing or monitoring agent or intermediary relationships. It should be used in conjunction with Precedents: Anti-bribery and corruption—agents and intermediaries policy, Financial crime prevention—evaluation and authorisation of an agent/intermediary arrangement and Financial crime prevention—agent/intermediary red flags guide. Notes Fatal v non-fatal red flags There are some factors involved in an agent or intermediary relationship which raise a higher probability of improper conduct on their part. Non-fatal red flags are those factors which may be resolved with additional due diligence (see below). Fatal red flags are so serious and pose so high a risk that

Charities and money laundering offences

Charities and money laundering offences Charities are as susceptible to money laundering 'attacks' as any other organisation. It is essential that charity trustees protect their charity from these attacks and to recognise them they need to understand the offences that can be committed. What is money laundering? Money laundering is a crime and is usually described as the process of turning the proceeds of crime into property or money that can be accessed legitimately without arousing suspicion. The term ‘laundering’ is used because criminals turn ‘dirty’ money into ‘clean’ funds which can then be integrated into the legitimate economy as though they have been acquired lawfully. See Practice Note: Money laundering—key information for businesses. The offences The Proceeds of Crime Act 2002 establishes a number of money laundering offences including and applies to all persons. See Practice Note: Proceeds of Crime Act 2002—key information for businesses. It is unlikely that a single charity will commit all of the potential offences but they should recognise their existence. The principal offences...

Joint investigations by the FCA and the PRA

Joint investigations by the FCA and the PRA Financial Services Enforcement Database: This incorporates detailed information on all substantive FCA and PRA Final Notices and, where available, Decision Notices from 2014 onwards. The Database, available here, may be searched and filtered by rule breach, keyword, sector, date, seriousness, aggravating and mitigating factors, financial penalty, and other actions such as appeals. The Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) are separate legal entities that operate with different objectives, with separate investigatory and enforcement powers, but with arrangements in place for investigations to be conducted jointly. Both the FCA and the PRA have similar processes for decision making with some differences. Both regulators' procedures include scope for early settlement with an individual or firm under investigation. There have been several examples of the FCA and the PRA agreeing to take enforcement action jointly. Generally, this has proved efficient and effective with the regulators successfully coordinating outcomes announced around the same time and based on...

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MLCO and nominated officer—combined job description and role profile

MLCO and nominated officer—combined job description and role profile 1 Introduction This job description and role profile relates to the combined position of money laundering compliance officer (MLCO) and nominated officer (NO). References to the MLR 2017 are to the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, SI 2017/692, as amended. 2 MLCO/NO role holder details Name of organisation [Insert organisation name] Name of MLCO/NO [Insert name] Status [Insert description that demonstrates board-level or equivalent status for MLCO role, eg Director and member of senior leadership team] Full time/part time ☐ Full time☐ Part time Details of any other roles held within the organisation [Insert details, eg COO] Date appointed by the organisation [Insert date] 3 Role summary 3.1 To act as the board-level (or equivalent) officer responsible for the organisation’s compliance with the MLR 2017 (the MLCO), and: 3.1.1 be the main point of contact with the [insert name of relevant AML supervisory authority] on...

Financial crime prevention—rejecting or terminating an agent or intermediary relationship—suggested wording

Financial crime prevention—rejecting or terminating an agent or intermediary relationship—suggested wording As we can be held liable for bribery, facilitation of tax evasion and fraud committed by an agent or intermediary while acting on our behalf, we must be confident before retaining an agent or intermediary (as well as throughout the business relationship) that they will not engage in these type activities. Therefore, our crime prevention measures require us to conduct appropriate due diligence in relation to any third parties acting on our behalf, to ensure any risks are identified and managed. Unfortunately, our due diligence process in relation to our[ proposed] arrangement with you has revealed [insert details of concerns revealed by your due diligence process]. [We have raised our concerns with [name individual] and suggested the following actions be taken to reduce the risk to a level acceptable under our [insert policy, eg anti-bribery and corruption] policy:] • [[insert measures suggested] • [insert measures suggested]

Dive into our 36 Precedents related to Financial crime

What powers does an investigator have to compel the witness to provide a statement during a criminal investigation, where a witness is known to be in the possession of crucial evidence, but is unwilling to provide a section 9 witness statement? Can the witness be forced to give evidence at trial?

What powers does an investigator have to compel the witness to provide a statement during a criminal investigation, where a witness is known to be in the possession of crucial evidence, but is unwilling to provide a section 9 witness statement? Can the witness be forced to give evidence at trial? Certain regulators have specific powers to compel witnesses to give statements during investigations. These are statutory powers which can be used during an investigation into suspected offences and the witness is compelled to attend the interview to answer questions or to provide information. However, as these are powers to compel and the witness has no right of silence as they would do in an interview under caution, there are statutory safeguards restricting the use of any information obtained from the compulsory interview powers. The contents of the interviews cannot be used in evidence against the maker in their subsequent criminal trial unless: • the trial is a prosecution for an offence of providing false or...

How should senior managers fulfil their personal regulatory duties under the SM&CR in relation to sanctions compliance?

How should senior managers fulfil their personal regulatory duties under the SM&CR in relation to sanctions compliance? What are the FCA’s expectations around senior management responsibility for sanctions risk? Which senior managers will be responsible? It is likely that there will be a number of members of senior management within FCA authorised firms with either individual or collective responsibility for managing sanctions risk under the SM&CR. At an individual level, primary responsibility for sanctions compliance will generally be held by the senior manager who is allocated the prescribed responsibility for ‘the policies and procedures for countering the risk that the firm might be used to further financial crime’. This prescribed responsibility is often allocated to the Money Laundering Reporting Officer (MLRO); however, it does not have to be. To the extent that this responsibility is held by a different senior manager, that individual will need to work closely with the MLRO and/or financial crime team to ensure the firm is complying with financial sanctions measures. Senior managers...

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A look back at the top UK corporate crime cases of 2024

Law360, London: Julian Assange's blockbuster plea deal, which allowed the Wikileaks founder to walk free from prison, the first fine imposed by Britain's sanctions' enforcer over Russia and a landmark ruling on criminal liability in supply chains are just a few of the key cases from 2024.

Businesses should expect a role in tackling fraud next year

Law360, London: If one word sums up a key trend in financial crime enforcement in 2024, it would be fraud, specifically consumer fraud.

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