The Solicitors Regulation Authority wants firms to beef up their AML systems in an effort to get them to avoid the most common breaches
The Solicitors Regulation Authority (SRA) is not impressed with how law firms are managing their anti money laundering (AML) systems. What’s most significant is not that money laundering crime has increased – it could be it has or at least remained the same. What bothers the SRA is that firms are not adequately prepared.
In a recent webinar, the SRA noted that law firms don’t have real control over their systems. Specifically, many aren’t conducting firm-wide risk assessments (FMRAs) and many don’t have policies, controls and procedures (PCPs) in place. Many firms are also not training and supervising their staff in AML procedures and they are not paying enough attention to warning notices and guidance.
The Solicitors Regulation Authority says it is keeping up to date with emerging risks and trends
An updated anti-money laundering (AML) and terrorist financing (TF) sectoral risk assessment was just published by the Solicitors Regulation Authority (SRA) that covers proliferation financing and sanctions.
The regulatory body, which oversees solicitors in England and Wales, also noted that firms are not allocating sufficient resources to AML work as an emerging risk, mostly due to increased economic pressures.
The proposed deal settles a suit brought by Epstein’s victims who were sexually abused by him over claims the bank ignored warnings about him
JPMorgan Chase has agreed to settle a lawsuit which accused the Wall Street giant of having facilitated financier Jeffrey Epstein’s sex trafficking enterprise.
It’s a deal that demonstrates the significance of compliance failures in the financial world.
In a recent criminal case that has come to light, a football club was revealed to have been the target for a sophisticated money laundering operation. A criminal cabal involving three solicitors exploited vulnerabilities within the clubs, taking advantage of lax due diligence procedures and establishing a troubling nexus between criminals, football, and money laundering.
The UK government has announced a series of reforms to its anti-money laundering (AML) and counter-terrorism financing (CTF) regulatory and supervisory regime
Following a review of the state of AML law in 2022, the Treasury has launched a consultation on reform of the anti-money laundering and counter-terrorism financing (AML/CTF) supervisory system. The review concluded that, while improvements had been made, there are still weaknesses in the regime.
Xiaotong Huang, a university student from Beijing, was charged with laundering nearly £85,000 for a Glasgow-based Chinese crime lord and was sentenced to jail for 18 months.
What happened? What were the red flags? And what can we learn from this case?
Hundreds of businesses across the UK have been fined
Between July 1 and December 31, 2022, 240 businesses were fined by HM Revenue and Customs (HMRC) for breaching Money Laundering Regulations (MLR) aimed at preventing criminals from exploiting illicit cash. The move, which was announced in a press release issued by HMRC, demonstrates that the government is taking financial crime seriously.
VinciWorks’ most recent money laundering case study tells the story of a Jersey shelf company that was charged with money laundering and ultimately returned $3.7m in confiscated funds to Kenyan citizens, which was then used for much needed medical funds and pandemic relief.
There is much to be learned from this recent case study, a case which marked the first time Jersey repatriated confiscated assets to Kenya. VinciWorks’ case study about the corruption case explains what happened, how the case was cracked, how the funds were accessed, what the penalties were, and what the red flags in the case were, and points out innovative approaches that were taken in the course of resolving this case.
Former footballer Richard Rufus involved friends, family, and associates in a pyramid scheme in which a total of £15M was invested with him. Using his status as a former athlete to appear wealthy and successful, he claimed he was a foreign exchange trader and convinced his victims to invest in what he said were low-risk schemes. Ultimately he failed to make a profit from his trading activities. The Pentecostal church, which had invested with him, lost its £5m. Of the £15m paid to accounts controlled by Rufus, investors received back a total of around £7.6m. He was tried and convicted and received a jail sentence of 7 and a half years. Rufus was found guilty of fraud, money laundering and carrying out a regulated activity without authorisation.
The case raised a number of red flags–including the big one that Rufus was not regulated–that should have been picked up on but weren’t. Investors were blinded by Rufus’ charm and flashy lifestyle.
Read VinciWorks’ case study
VinciWorks new case study about the scam explains what happened, how Rufus was caught, what the penalties were, and what the red flags in the case were. The case study also includes important information on how to protect yourself from financial investment fraud and and what to do if you’ve been a victim of financial investment fraud.
AML training suite – relevant training for all staff
VinciWorks strives to make its AML training more than simply a tick-box exercise. Click here to learn more.
At a glance: AML ongoing monitoring
Automating the ongoing monitoring process can be the key to an effective and successful AML programme. Our one-page guide to ongoing AML monitoring provides a succinct and informative overview of ongoing monitoring including a definition, tips on how to comply with AML ongoing monitoring regulations, and answers the questions of who needs to be checked during ongoing monitoring, when to do CDD reviews, and what has to be recorded during ongoing monitoring.
What do I need to check during ongoing monitoring? When do I need to do a CDD review? What do I need to record during ongoing monitoring? Ongoing monitoring is an essential part of an effective anti-money laundering programme and it’s essential to stay on top of compliance requirements to avoid exposure to financial crime and penalties. But keeping on top of the many details of all of the requirements can be challenging. A few months ago we published an in-depth guide to ongoing monitoring, but sometimes it’s helpful to have a short cheat sheet within easy reach to ensure you’re staying in line with the regulations.
