John Cusack

Our very own Claire Rees DipFCP, DipAML, Financial Crime Regulatory Specialist takes a closer look at the proposed FCA guidance for transaction monitoring in our recent blog: https://hubs.li/Q02z2DBj0 #AML #financialcrime #amlcompliance #FCA #TransactionMonitoring

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🔔FOS Case Fees for CMCs 🔔 The Treasury has announced that the Financial Ombudsman Service (FOS) will soon have the power to charge case fees to claims management companies (CMCs). HM Treasury has issued a statutory instrument granting it the authority to define who the FOS can charge fees to. We believe these fees are likely to be introduced in Spring 2025. It’s essential to start considering the potential impacts on your operations and financial planning. https://lnkd.in/ejpgmGtA The CMA is committed to providing guidance and resources to help you navigate this new regulatory landscape. Stay connected with us for more updates. 📩 If you have questions or concerns, reach out to us today! #ClaimsManagementAssociation #News #RegulationUpdate #CMCs #FOSCaseFees #SupportingOurMembers

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HM Treasury has announced its intentions to offer proportionality and further clarity in plans to update the technical elements of the Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017 (MLRs). The plans are designed to give businesses further guidance with the Treasury planning further changes to the AML supervisory regime currently in place. The further clarity from the Treasury has been emphasised on several important legal practices including digital identification and enhanced due diligence. Read more ⬇️ https://lnkd.in/e-EjGABG #hmtreasury #moneylaundering #aml #law #financialcrime

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Futures Commission Merchants (FCMs) are calling for more oversight of self-clearing CCP members. Clearing firms worry that PTFs and market-makers joining CCPs en masse will increase systemic risk. Ive just read an excellent article from Luke Clancy at Risk.net . Read it here (paywall) https://lnkd.in/eK8e2vSF. The increasing trend of principal trading firms (PTFs) and market-makers becoming direct members of central counterparties (CCPs) is reshaping clearing. While this shift offers benefits like greater liquidity and cost efficiency, it also introduces significant risks that must not be ignored. The US Treasury clearing mandate—requiring broker-dealers to clear US Treasury securities by December 2025 and repo trades for most participants by June 2026—has been a key driver. To preserve profitability in strategies like basis trading, where margin treatment is critical, many firms see self-clearing as a way to optimise margin offsets between cleared repos and futures. However, concerns from futures commission merchants (FCMs) and other market participants highlight critical risks: 1️⃣ Capital Requirements and Resilience: Banks and FCMs face strict capital rules. Banks must hold 3–5% capital against exposures, and FCMs must set aside 8% of required client margins. By contrast, non-bank CCP members can join with as little as $5 million. This disparity raises concerns about whether these firms can absorb losses during market stress, potentially endangering the system. 2️⃣ Default Fund Contributions and Intraday Risk: CCP default fund contributions are based on end-of-day positions, but PTFs and market-makers often hold substantial intraday exposures. Their trading strategies involve high daily volumes, creating risks that may not be fully captured by CCP risk models. This leaves the system vulnerable if a failure occurs. 3️⃣ Regulatory Oversight: Unlike FCMs, which face intense scrutiny from bodies like the CFTC, self-clearing PTFs operate with lighter oversight. This creates an imbalance, with CCPs incentivised to admit members based on commercial interests rather than systemic safety. If FCMs are heavily audited and fined for minor infractions, should self-clearing members face the same treatment? While some argue that more clearing members enhance resilience—citing examples like DRW’s role in managing Lehman’s positions during the 2008 financial crisis—the systemic risks cannot be ignored. Uniform capital requirements for all CCP members and revised margining practices to account for intraday exposures could help address these risks. As the US Treasury clearing mandate approaches, the industry must balance innovation with stability. How do we ensure progress doesn’t compromise resilience? Your thoughts on these developments are welcome. Glenn Handley SecFin Solutions Education and Consulting Services https://lnkd.in/ePeMPvTu

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The Joint Money Laundering Steering Group #JMLSG published its finalised revisions to its Wholesale Markets Guidance Revisions have been published to the following sections of Sector 18, Part II of the JMLSG AML/CTF/CPF Guidance: ➡️ ML risks in the Wholesale Markets sector and how to assess them;  ➡️ CDD (including SDD and EDD) requirements; and  ➡️ Specific guidance on Wholesale Subscription Finance in Private Capital Funds, including product-specific risks and firms’ requirements. 💡 The revisions await HMT Ministerial approval before they will become official regulatory guidance. Relevant firms operating in Wholesale Markets should review the revised sections and make any preparations ahead of their implementation, including impact assessments and procedural updates. ✅ Plenitude RegSight and its subscription newsletter keeps you informed of the evolving regulatory landscape in the UK and its impacts for firms. Visit our website for more information: https://lnkd.in/ebAjkz5y Learn more: https://lnkd.in/eUaTJbSV

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HM Treasury has signed a Memorandum of Understanding (MoU) with the Financial Conduct Authority, Prudential Regulation Authority and Bank of England. The MoU enables the establishment of a joint Critical Third Party (CTP) Consultation and Coordination Forum, through which the regulators will co-ordinate their CTP functions. Access the MoU here - https://pimfa.cc/HSFWZ

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FSDC Publishes Annual Report for 2023/24 The Financial Services Development Council (“FSDC”) has released its annual report for the financial year from 1 April 2023 to 31 March 2024. This year, the FSDC published 6 policy research and other reports, setting forth policy recommendations to fortify Hong Kong's standing as an international financial centre. These reports cover a broad range of topics, including boosting market liquidity and diversity, advancing Hong Kong as a regional philanthropic hub, fostering blockchain technology adoption, expanding offshore Renminbi business capabilities, cultivating young talent for the industry, and others. Since 2013, the FSDC has made 234 policy recommendations, with 166 adopted by the Government, achieving an adoption rate of 71%. #report #FSDC #SaudiArabia #blockchain

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Throughout 2024, we conducted various consultations with Jersey banks on the Basel Committee’s revised Basel III reforms to shape our approach to implement these changes in Jersey. We have published a consultation and invite your feedback by 28 March 2025 on our proposals to implement updates to: - the Standardised Approach to Credit Risk - the Standardised Approach to Operational Risk - Large Exposures regulations Read our industry update for more information: https://bit.ly/49HJvB0

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On October 17, the Financial Conduct Authority (FCA) expressed its support for the government's consultation on the regulation of Buy Now Pay Later (BNPL) products, which are currently exempt from regulation. Key Highlights: - Call for Regulation: The FCA has been advocating for BNPL regulation since 2021, following the Woolard Review, to ensure consumer protection and address potential risks in the sector. - Upcoming Consultation: The FCA plans to consult on its regulatory regime for BNPL after legislation is finalized, outlining proposed rules and an approach to authorising firms. - Consumer Protection: New rules will require BNPL providers to offer clear information, conduct affordability checks, and comply with the Consumer Duty. Borrowers will also have access to the Financial Ombudsman Service. - Authorisation Process: Firms offering BNPL services will need to apply for authorisation. A Temporary Permissions Regime (TPR) will allow firms to continue operating while their applications are processed, ensuring compliance with FCA rules. - Proactive Measures: Although not yet regulated, the FCA has already taken steps to address unfair contract terms and misleading advertising in the BNPL sector. The FCA’s regulation will ensure BNPL remains a useful option for consumers while protecting borrowers and fostering responsible lending practices. Follow Global Regulatory Insights for more updates on financial regulations. #FCA #BNPL #consumerprotection #creditproducts #regulation #UK #GRI

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Catch up on ICAEW's response submitted to a recent government consultation proposing changes to help improve the effectiveness of the Money Laundering Regulations 2017 (MLRs). Being proportionate is key. Michelle Giddings, ICAEW’s Head of AML, looks at the proposals and draws out the key points for ICAEW-supervised firms: https://ow.ly/NwTa50SmmGc #icaewRegulation #aml #governance

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The three stages of laundering money are: 1. Placement: The ""dirty money"" or proceeds of crime is placed in the financial system; 2. Layering: Moving funds around financial services, with a view to further disguising the proceeds of crime; and 3. Integration: When the money launderers can withdraw the funds from the financial system and use this for seemingly ""legitimate"" activities. Click below for our online Anti-Money Laundering training course, with access to our Free Demo Course.... #AML #AntiMoneyLaundering #RQCGroup

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MONEYVAL's recent assessment of Guernsey's international AML/CFT/CPS standards underscores the continued focus on financial crime in the region. While results are pending, Joe French and Barney Lewis explain how firms can ensure their strategies remain effective against evolving risks: https://lnkd.in/exKdKCw7 #AML #FinancialCrime #FinancialRegulation

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ESMA's recent report on Suspicious Transaction and Order Reports (STORs) provides the market with an overview of their use in different EU countries. Kaizen's Market Abuse and Surveillance Director (and former FCA regulator) Simon Appleton reviews the trends in the report and asks what it means for market surveillance. https://lnkd.in/ejxdDeZx #esma #marketsurveillance #marketabuse #insiderdealing

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December's edition of financial services regulatory is out now: https://bit.ly/3BmTmj1   This month Martin Dowdall, Charlotte Witherington and Daniel Hirschfield look at: ▪️FCA crypto roadmap ▪️new National Payments Vision from HM Treasury ▪️PSR writes to tech firms on APP fraud ▪️plus much more.   Sign up now and get these insights straight to your inbox: https://lnkd.in/eRWH_BJ6   #FinancialServicesMatters #Crypto #Payments #FinTech

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📣 UPCOMING WEBINAR: Consumer Duty - A Blueprint for Customer Trust 📆 Thursday 26th September 🕑 2pm BST | 9am EDT The UK FCA's Consumer Duty set the bar for consumer protections - which is now becoming increasingly prominent focus for authorities globally. In this webinar, an expert panel delves into the key principles, frameworks, and obligations firms must adhere to in order to meet these heightened standards. Expect to leave this webinar knowing: 💡What Consumer Duty is, and how it has evolved 💡Successes and challenges in implementation 💡Lessons learned for other jurisdictions 💺 Save your seat: https://lnkd.in/ejw468DT #consumerduty #customerprotection #customertrust #paymentscompliance

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Open Banking #OBL released its Financial Crime Report 2024, providing key insights into financial crime risks and mitigation strategies within open banking journeys. The report highlights the evolving challenges of combating fraud and financial crime in the rapidly growing open banking ecosystem. Key Takeaways Include: ➡️ Total APP fraud losses in the first half of 2024 amounted to £213.7 million across 178,230 payments, underscoring the scale of fraud risks in open banking transactions​; ➡️ Fraudsters are exploiting vulnerabilities in payment authorisation processes, highlighting the need for robust security measures and enhanced monitoring​; ➡️ Collaboration between financial institutions and technology providers is critical to mitigating risks and improving fraud detection within open banking journeys​; and ➡️ The report emphasises the importance of consumer education in identifying and avoiding scams within the open banking environment​ ✅ Financial institutions should continue to prioritise robust fraud prevention strategies to safeguard the integrity of open banking ecosystems. 💡 Learn more about Plenitude’s Fraud Prevention Services and how we help clients enhance their fraud prevention mechanisms: https://lnkd.in/eFGHUH5U https://lnkd.in/ejgyM87t

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Currently, in the UK, less than 6% of Tax returns from Carbon Emission Trading reach the government: https://lnkd.in/ed-Bu9nn In a recent #JBBA research, it is shown that #Blockchain Technology can revolutionise #carbon emission #trading, offering governments the opportunity to boost #Tax returns, enhance #transparency, increase #efficiency, #automate tax collection processes, and eliminate single points of failure: https://lnkd.in/egSU4D4c We encourage our members and partners to apply for the DSS. Bank of England Financial Conduct Authority HM Treasury Tulip Siddiq Prof. Dr Naseem Naqvi MBE

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Finally - a FREE EOY KRI Template built by financial crime professionals for financial crime professionals 😊 Our CEO & Co-Founder, Natasha Vernier, who served as the Head of FinCrime at Monzo Bank, knew all too well how time-consuming an End-of-Year KRI report can be, especially when juggling dozens of other responsibilities 🫠. So she did the obvious thing and created a template that can be used to easily communicate to key stakeholders how well the KRIs are performing that year 😎 Just click the link below to download our End-of-Year KRI Template and streamline your compliance processes! 🚀 https://hubs.ly/Q02DzLhJ0 #Compliance #FinancialCrime #KRIs #RiskManagement #FreeTemplate #Cable #CableTech

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