26/07/2024 - Validient's Weekly Roundup

This week has been eventful in the finance and regulatory world. The OIX - Open Identity Exchange is pushing the new UK government to fast-track digital ID rollouts, the ICAEW revealed many firms are falling short on anti-money laundering compliance, Jersey's positive MONEYVAL review is likely to keep it off the Financial Action Task Force (FATF) grey list and 7 major UK Banks have agreed to share data with law enforcement.

Meanwhile, a large fine has been issued to CB Payments Limited for regulatory breaches in crypto transactions by the Financial Conduct Authority (FCA).

OIX calls on new UK government to accelerate digital ID rollout

The Open Identity Exchange (OIX) urges the new UK government to expedite the implementation of digital IDs. In a letter to Secretary of State Peter Kyle, OIX highlights the potential economic benefits of digital IDs, citing McKinsey's estimate of a 3-13% GDP boost. OIX recommends developing a digital wallet strategy, ensuring public-private sector interoperability, and promoting cross-border identity recognition.

Firms fall short on anti-money laundering rules

A significant number of firms are failing to meet anti-money laundering (AML) regulations, according to a report by the Institute of Chartered Accountants in England and Wales (ICAEW). The report highlights deficiencies in firms' understanding and implementation of AML rules, stressing the need for better compliance and enforcement. The ICAEW calls for enhanced training and resources to help firms improve their AML practices and ensure compliance to regulatory standards.

Jersey gets favourable report from MONEYVAL

Jersey is likely to avoid being placed on the Financial Action Task Force (FATF) grey list after receiving a positive review from MONEYVAL. The report commends Jersey for strengthening its anti-money laundering (AML) legal and regulatory frameworks. However, it notes that the island must focus more on practical AML enforcement rather than just technical compliance to maintain its improved rating.

Seven banks share data with UK law enforcement in 'dirty money' crackdown

Seven major UK banks, including Lloyds Banking Group , NatWest and Barclays , have taken significant steps to combat financial crime by agreeing to share data with law enforcement. This initiative aims to tackle money laundering and other economic crimes, which cost the UK economy around ￡350 billion annually. The banks will participate in two pilot programs, one involving data sharing when multiple red flags are detected, and another creating a comprehensive database for suspected economic crimes set to launch by October.

Coinbase fined for AML failings

The FCA has fined CB Payments Limited (CBPL) ￡3.5 million for breaching requirements that prevented it from offering services to high-risk customers. The FCA highlighted significant weaknesses in CBPL's financial crime controls, emphasising the importance of robust measures to combat money laundering in the crypto sector.

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