Friday's Final Word | Week 31

Welcome to Fourthline's weekly newsletter, where we share insights, developments, and the latest news to help keep you sharp! Enjoy ???

???Tackle the Fentanyl crisis? Print smaller bills

?? Monzo bank denies Jeremy Hunt as staff call tories "evil"

?? US regulator warns brokers to enhance AML efforts

???Number of account closures since 2016 skyrockets

???UK regulatory outlook?2023

??? Leaders in Finance?interview with?Krik Gunning

You want to tackle the fentanyl crisis? Print smaller bills

In this op-ed Oliver Bullough discusses the role of cryptocurrencies and cash in money laundering by criminals, particularly in the context of the fentanyl crisis. While there is a call for stricter crypto exchange regulations, the author argues that focusing solely on cryptocurrencies misses a larger issue. Bullough humorously suggests that if we truly want to tackle the problem, we should consider printing smaller bills since large denominations of cash facilitate criminal activities. The article highlights the substantial amount of U.S. banknotes in circulation, indicating that the Federal Reserve's printing of money indirectly contributes to criminal enterprises. The author also emphasizes the complexity of corruption, advocating for a deeper understanding of the issue to promote honesty in public life.

Read full whitepaper?here

US regulator warns brokers to bolster anti money-laundering efforts

The U.S. Securities and Exchange Commission (SEC) has cautioned multiple (unnamed) broker dealers to enhance their anti-money laundering efforts, citing inadequate resources and procedures. The SEC's examination revealed deficiencies in conducting customer due diligence, timely testing of anti-money laundering programs, and updating programs to comply with new regulations.

Read full article?here

Monzo bank denied Jeremy Hunt an account as staff called Tories ‘evil’

Former Conservative UK politician Jeremy Hunt revealed that he was refused a bank account with Monzo last year, citing his status as a "politically exposed person" (PEP). Hunt, who is now the chancellor, highlighted the barriers faced by people in public life and called for their removal. It has now been revealed Monzo bank staff engaged in leaked internal chats where they referred to the Conservative party as "evil" and expressed joy over Tory election losses. Monzo also faced criticism for informing anti-Brexit campaigner Gina Miller that her political party's account would be closed, while the chief executive of NatWest group, Dame Alison Rose, resigned after discussing Nigel Farage's Coutts bank account.

Read full article?here

Number of account closures since 2016 skyrockets as banks take tough line on financial crime

The number of bank accounts being closed due to financial crime concerns surged to nearly 350,000 in the past year, a stark increase from under 50,000 in 2016, according to data obtained from the Financial Conduct Authority (FCA). The rise is attributed to banks' heightened monitoring efforts and vigilance towards customers, although such closures represent less than 0.2% of personal current accounts in the UK. The Treasury has announced plans to extend the termination notice period for account closures to 90 days and require banks to provide explanations, while an investigation into account closures has been launched by MPs from the Fair Business Banking All-Party Parliamentary Group.

Read full article?here

UK regulatory outlook 2023

1. Online Fraud Charter with Tech Platforms: The UK Home Office is developing an online fraud charter in collaboration with the tech sector, aiming to combat scams by ensuring tech companies block fraudulent content, simplify fraud reporting, and swiftly remove scams.
2. Expansion of Corporate Criminal Liability Regime: The UK government confirms the extension of the corporate criminal liability regime, broadening the "corporate criminal attribution" test to include senior managers representing the "controlling mind" of a company.
3. PSR Consultation for APP Scam Reimbursement: The Payment Systems Regulator (PSR) has launched a consultation on enforcing new authorized push payment (APP) scam reimbursement requirements, seeking input on rule changes for the Faster Payments System (FPS) and effective monitoring by Pay.UK.
4. Reforming AML and CTF Supervision Consultation: HM Treasury has published a consultation on reforming the anti-money laundering (AML) and counter-terrorism financing (CTF) supervisory system, presenting four potential models for enhancing AML/CTF supervision.
5. Appointment of New Director of Serious Fraud Office: Nick Ephgrave is appointed as the new director of the UK's Serious Fraud Office (SFO), succeeding Lisa Osofsky, and will lead investigations and prosecutions related to fraud, bribery, and corruption.
6. HM Treasury Approves JMLSG AML and CTF Guidance Revisions: The Joint Money Laundering Steering Group (JMLSG) receives ministerial approval for revisions to its AML/CTF guidance, addressing aspects like suspicious activities reporting and cryptoasset exchange providers.
7. Amendments to List of High-Risk Third Countries: Commission Delegated Regulation (EU) 2023/1219 updates the list of high-risk third countries with strategic AML and CTF deficiencies, adding Nigeria and South Africa while removing Cambodia and Morocco.
8. Updated HM Treasury Advisory Notice on ML and TF Controls: HM Treasury issues an updated advisory notice on money laundering (ML) and terrorist financing (TF) controls for high-risk third countries, reflecting changes to the list of countries subject to enhanced due diligence and sanctions measures.

Read full article?here

Leaders in Finance interview with Krik Gunning

In a pre-event interview for the Leaders in Finance AML NL Event, Krik Gunning, CEO and Co-founder of Fourthline, discussed their mission to combat financial crime through technology, emphasizing their role as a tech company regulated by the Dutch Central Bank. Gunning highlighted the significant shift in the industry's perception of technology's role in fighting financial crime, particularly with the acceptance of AI by both financial institutions and regulators. He also discussed Fourthline's use of AI in biometric verification, document authentication, and data science to enhance anti-money laundering processes.

Read full article here

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