KYC360 Weekly Roundup - 14th Jul 2023

Published on Jul 14, 2023

EBA highlights poor AML enforcement

Welcome to this week’s AML Roundup. In our anti-money laundering news this week, the European Banking Authority highlights inconsistencies and poor practice by AML regulatory bodies across the continent. Barclays wins in the Supreme Court and there’s more on the approach banks take to de-risking.

In a major speech this week, the head of the FCA warns about AI and the impact of big tech. US regulators call for tougher rules for large banks and the influence of ESG in US investment is growing. We also have news on the growth in the worldwide gambling market and the importance of compliance for gambling businesses.

To complete this week’s Roundup, we provide you with further money laundering, fraud, corruption and bribery updates from around the world. In addition, the latest news from the crypto and virtual assets sector and what’s new in gaming and gambling. We wrap up with the latest in global sanctions including a push from the EU Parliament to ensure sanctions enforcement is more consistent across member states.


Financial_ServicesMoney Laundering, Fraud & Corruption

European Banking Authority highlights continued poor practice around AML in latest implementation reviews

The EBA has published its latest report on the performance of member states AML authorities and concludes there much work still to be done. The case for an EU wide AML authority is being strengthened.

Supreme Court rules in Barclays’ favour over push payment fraud case

Back in 2020, a Barclays customer who was scammed into transferring £700,000 to fraudsters, alleged the bank owed her a duty not to carry out her instructions if they had suspicions she may be being defrauded. After losing the initial case, the customer won an appeal. However this week, the Supreme Court unanimously upheld Barclays’ appeal in a written ruling.

De-Risking and Money Laundering

We’ve covered the issue of banks de-risking before. It’s the process by which financial institutions choose not to work with clients to avoid, rather than manage, any associated financial risks. Whilst on the face of it, it makes perfect sense, there are some serious consequences when not used in the way originally intended. There’s a useful summary of the issues here.

Guernsey’s Financial Services Commission updates its Handbook on Countering Financial Crime and Terrorist Financing

New additions to the handbook cover Virtual Asset Service Providers (VASPs) and other licensees regulated under the new Lending, Credit and Finance Law.


RequirementsLegislation, Regulation and Sustainability

Financial Conduct Authority warns banks of risks from AI and Big Tech

The FCA’s chief Nikhil Rathi in a speech this week, encouraged banks to spend more to combat the threats from AI. He also discussed the implications of the growing influence of big tech firms as part of an ongoing FCA review into the impact they’re having.

FCA to review how banks treat politically exposed persons (PEPs)

After UK Chancellor of the Exchequer Jeremy Hunt revealed he was turned down for a bank account last year, the Government has tabled an amendment to the Financial Services and Markets Bill (FSMA) requiring the FCA to review how banks treat PEPs.

US regulator calls for tougher rules on large banks

Michael Barr, vice chair for supervision at the Federal Reserve warned in a speech this week that America’s banks will be forced to beef up their capital reserves. Since beginning a sweeping review of current capital rules last year, the failure of three large regional banks has added urgency to the effort.

ESG Influence in finance grows in the US

The NTD reports on a hearing in the US House on the how ESG influence in investments is growing.


Gambling_GamingGaming and Gambling

The importance of compliance in gambling

With the ever-increasing number of fines being levied by regulators, comes the need for gambling companies to attract skilled compliance professionals to ensure best practice.

New report suggests worldwide gambling market to grow by $260bn from 2022 to 2027

Technavio’s latest report predicts a CAGR of 7.1% with North America expected to contribute 37% to the development of the global gambling market.

Newspaper groups diverge over gambling advertising

After last month’s news that The Guardian group are banning all gambling advertising worldwide, The Independent announces a multi-year partnership with a major gambling business.


Crypto-1Crypto & Virtual Assets

European Securities and Markets Authority (ESMA) seeks industry input on crypto regulatory framework

The ESMA has issued a consultation asking the crypto industry how it thinks the forthcoming Markets in Crypto-Assets Regulation (MiCA) regulatory framework should work.

FCA issues warnings about crypto ATMs

Using Crypto ATM machines is illegal in the UK and the FCA has stepped up its warnings about their use.

US crypto industry worries about regulation

While the EU has moved ahead with regulation of its crypto industry, in the US there are concerns that forthcoming regulation might stifle the industry or even ban elements of it. Comments we’ve reported on before by Gary Gensler, the Chair of the Securities and Exchange Commission (SEC) have worried the industry about direction of travel.



EU Parliament adopts draft negotiating mandate to ensure sanctions are uniformly enforced across member states

With concern in recent months that some EU member states have been enforcing sanctions less rigorously that others, EU MEPs in the Civil Liberties Committee have voted in favour of greater and more uniform enforcement.

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Your latest weekly update from the worlds of money laundering, legislation and regulation, sustainability, gaming and gambling, crypto and sanctions.

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