Category Archives: Money Laundering News

New data protection and anti-money laundering regulations

Judge sitting at his desk

Today, Section 11 of the Criminal Finances Act 2017 comes into force. It amends the Proceeds of Crime Act (POCA) and affects the regulated sector. The new data sharing regime enables regulated persons to request and share information with their regulated peers, free in most respects from contravening data protection regulations. Any disclosure “made in good faith” that does not breach any duties of confidence or “any other restriction on the disclosure of information.”

The purpose is to encourage the sharing of information from different entities in the regulated sector and better enable the collation of multiple reports of potential money laundering into a single Suspicious Activity Report.
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Guide to anti-money laundering training requirements

What you need to know sign

The Money Laundering Regulations 2017 require relevant businesses to:

  • Make employees aware of the law relating to money laundering and terrorist financing
  • Regularly provide training on how to recognise and deal with transactions and other activities which may be related to money laundering or terrorist financing

What is a relevant business?

Any business operating in one of the following industries should have clear money laundering training procedures.

  • Accountants
  • Estate Agents
  • Financial Services
  • Law firms

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Fourth Directive ready anti-money laundering and counter-terrorism financing policy template

Anti-money laundering banner

In light of the new Money Laundering Regulations having come into full effect in June, VinciWorks has made available a free anti-money laundering and counter-terrorist financing policy template. The policy can easily be edited to suite your law firm or organisation, your industry and staff.

Download template

Here are some guidelines for what should be included in an anti-money laundering policy:

    • Introduction and an explanation of what money laundering and terrorist financing is
    • How does money get laundered?
    • Guidelines on differentiating between money laundering and terror financing

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Money Laundering Regulations – how do criminals and terrorists abuse law firms?

Grenade and money

At least £57 billion is laundered through the UK each and every year. It’s not just criminals turning their illicit money from crime clean. Terrorist financing is often overlooked when it comes to anti-money laundering efforts, but acts of terror in the UK and around the world are being bankrolled in the same way as money is laundered.

Law firms, as well as other professional services such as accountants, estate agents and financial services, are at high risk of being patsies for criminals and terrorists. Because their accounts are seen as “clean,” sending dirty money into a law firm’s client account and having it sent back out again is a sure fire way to launder dirty cash.
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Money Laundering Regulations – individuals and organisations receive large fines

The Fourth Anti-Money Laundering Directive, which came into force on 26th June 2017, brings some key changes to the anti-money laundering policies in law firms and organisations. Recent high profile money laundering scandals demonstrate the importance of having the right procedures in place to prevent money laundering. This blog gives some examples of the money laundering convictions that have damaged the reputations of firms and organisations.

Deutsche Bank learns anti-money laundering lessons the hard way

Deutsche Bank

In January, Deutsche Bank, Europe’s largest investment bank, was hit with an incredible £500 million from multiple regulators. The bank ran a $10bn money laundering scheme involving the Moscow, New York and London branches shifting roubles between Cyprus, Estonia and Latvia in a manner that was “highly suggestive of financial crime.” The regulators said “the bank missed numerous opportunities to detect, investigate and stop the [money laundering] scheme due to extensive compliance failures, allowing the scheme to continue for years.”
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On-demand Fourth Directive webinar – your questions answered

On 26th June 2017, the UK met the EU’s deadline and transposed the Fourth Money Laundering Directive into national legislation.

On Monday 2nd July over 200 law firms and organisations joined Director of Best Practice Gary Yantin and anti-money laundering expert Amy Bell to discuss the implementation of The Fourth Directive and the new Anti-Money Laundering Regulations 2017.

The webinar covered some key questions surrounding the new regulations such as:

  • What must firms do to comply with the Fourth Directive?
  • How do the changes to pooled client accounts affect me and how likely are the changes to come into force?
  • How do you carry out a risk assessment?
  • Is there Law Society guidance on how to approach risk-based CDD?
  • How will new legislation such as the Criminal Finances Act affect you?

Watch now

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Summary of Fourth Directive Changes in the Crown Dependencies

Jersey, Guernsey and the Isle of Man are not members of the European Union and are not obligated to adopt the EU’s Fourth Anti-Money Laundering Directive as the UK has done with the Money Laundering Regulations 2017.

However, with close to 100 licensed banks, tens of thousands of regulated professionals and hundreds of billions of pounds in deposits and funds across the Crown Dependencies, complying with Financial Action Task Force (FATF) guidelines and implementing a international AML/CFT standards is a priority for the Bailiwick’s of Jersey, Guernsey, and the Isle of Man.

Jersey and Guernsey, in their 2017 answers to the European Parliament committee investigating the Panama Papers, have committed to reviewing the Fourth EU Money Laundering Directive “after it has been approved at all EU levels”. The Crown Dependencies are likely to implement such measures as other third countries.

Current AML legislation in each Crown Dependency

Isle of Man

  • Isle of Man Proceeds of Crime Act 2008
  • Anti-Money Laundering and Countering The Financing of Terrorism Code 2015
  • Beneficial Ownership Act 2017

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Changes between the draft and final Money Laundering Regulations 2017

Approval stamp

The government released a draft of the Money Laundering Regulations back in March 2017 outlining the proposed approach to transposing the Fourth Money Laundering Directive into UK law. On 26th June, those Regulations became law, having been rushed through Parliament.

Most of the content of the final law is the same as in the draft; the key changes we have outlined previously. However, there are a few important additions included in the final version of the Regulations that were not in the draft.
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Government rushes through new Money Laundering Regulations 2017

Big Ben and Houses of Parliament

Parliamentary procedure broken in order to meet today’s EU deadline

The government confirmed at the last minute the new EU Fourth Anti-Money Laundering Directive (4MLD) will come into force today (Monday) in order to meet the European deadline of transposing the 4th Directive into national legislation by 26 June 2017.

Due to the general election, the government has been forced to rush through the new rules, and will break parliamentary convention in order to do so.

The Money Laundering Regulations 2017 is a negative statutory instrument. These automatically become law without debate unless there is an objection from either House of Parliament. By convention negative statutory instruments should not come into effect until a minimum of 21 days after they are laid out. However, on Friday the government confirmed they would be breaking these rules in order to ensure that the EU deadline for transposing the Fourth Directive into national law is met.
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