Basel Committee
AML/CTF - Basel Committee publishes updated Guidelines on risk management - July 2020
The Basel Committee on Banking Supervision (Basel Committee) has published updated Guidelines on the management of anti-money laundering (AML) and counter-terrorist financing (CTF) risks. This follows the Basel Committee’s consultation, published in November 2019, on incorporating into the Guidelines practical guidance on the interaction between prudential and AML and CTF supervisors.
The updated Guidelines describe how banks should include the management of AML and CTF risks within their overall risk management framework and set out principles and recommendations in relation to: (i) information exchange on bank authorisation processes; (ii) ongoing supervision; and (iii) enforcement actions.
Updated Basel Committee Guidelines on the management of AML and CTF risks
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Press release
European Commission
4MLD - European Commission commences infringement proceedings against nine member states - 2 July 2020
The European Commission has announced that it has commenced infringement proceedings against nine EU member states concerning failures to transpose and implement the Fourth Money Laundering Directive (EU) 2015/849 (4MLD) into domestic law before the transposition deadline of 26 June 2017.
Letters of formal notice have been sent to Luxembourg, Slovakia and Slovenia for incorrectly transposing 4MLD. Reasoned opinions have been sent to the Czech Republic, Denmark and Italy for failing to fully implement 4MLD into domestic law. The Commission has referred Austria, Belgium and the Netherlands to the European Court of Justice (ECJ) with a request for financial sanctions for failing to fully implement 4MLD into domestic law.
Press release: European Commission commences infringement proceedings against nine EU member states for failing to fully transpose 4MLD into domestic law
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Financial Conduct Authority
Wirecard - FCA allows resumption of regulated activities having imposed restrictions on authorisation - 29 June 2020
The FCA has announced that Wirecard Card Solutions Limited (Wirecard) can resume carrying on regulated activities, having previously imposed a number of requirements on the firm on 26 June 2020 following news of alleged fraud committed by Wirecard’s parent company, Wirecard AG. These requirements included that the firm must not dispose of any assets or funds, that it must not carry on any regulated activities and that it must set out a statement on its website that it is no longer permitted to conduct any regulated activities.
The FCA confirms that Wirecard is authorised and supervised by the FCA to issue e-money and provide payment services under the Electronic Money Regulations 2011 and the Payment Services Regulations 2017. The FCA will continue to monitor Wirecard’s activities closely and certain requirements remain in force. These requirements include restrictions over where it can hold customer monies and restrictions over its ability to transfer its own assets. The FCA observes that these remaining requirements imposed should not affect the services Wirecard provides to its customers, who can now or very shortly use their cards as necessary.
Press release: FCA imposes requirements on Wirecard's authorisation
