Money Laundering Regulations 2017 Changes

Money Laundering Regulations 2017 Changes
As you know, the 26 June 2017 saw the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (“MLR 2017”) came into force, having been made, laid before Parliament and approved all on 22 June 2017.

Regulated businesses are now faced with the inestimable task of ensuring both their firm-wide and client-specific risk assessment processes and procedures are sufficiently robust to comply with MLR 2017 – after the commencement date.

If you use an external Compliance Service, they may well have provided you with an update on the legislation before it came into force, however, anyone who used the original draft in the belief that they would be the final rules will have failed to identify key points that are required by firms, that have been changed or were introduced in the final legislation.

Questions You Need To Ask

1. Have we reviewed the definitions and procedures in accordance with the MLD4?
2. Have we updated the CDD/EDD/SDD and Beneficial owner sections?
3. Have we trained our staff on the changes?
4. Is our policy up to date?
5. Is our policy approved by the board?
6. Would our AML/KYC/FC preparations or current arrangements stand up to independent external scrutiny?
7. Do you need to review the ‘state of play’ within your firm?

If the answer to ANY of these questions is “NO”You Need Our Help.

After a comparative analysis of the draft Regulations and the final MLR 2017 from the draft published by HM Treasury in April 2017 there are key differences which we have identified below.

Risk Assessment & Review
At your business level, two risk assessments are required. A business-wide risk assessment of money laundering and terrorist financing geographical features, transactions, products and delivery channels, as well as a specific risk inquiry prior to the commencement of each client relationship and, following a consideration of customer type, indeed, during the course of the relationship.

Governance Requirement
Regulation 19 of the Act shows a positive duty on regulated businesses to “regularly review and update” such policies and controls has been inserted in Regulation 19( 1)(b). Businesses will also be required to maintain a written record of all changes to AML policies, controls and procedures made because of a review plus all “steps taken to communicate” the changes to staff. This means that your version control is now of paramount importance. A similar requirement applies in Regulation 20 to parent companies in the UK, falling within the scope of a “relevant” (regulated) person.

Internal Controls
Alongside the requirement to implement and regularly review AML policies and procedures, is a requirement in Regulation 21 that regulated persons implement internal controls applicable to employees engaging with compliance matters. Previously, the draft Regulations required a firm to “carry out screening of relevant employees and agents” at regular intervals. “Screening” relates to assessing the skills, knowledge and expertise of a particular individual. The final version of the Regulations, however, has slightly lessened the compliance burden in one respect by dropping the reference to “agents” in Regulation 21.

Training records
A duty to maintain written records of training provided to relevant employees, which practically would include all fee earners and those in the Compliance function, also appears in Regulation 24. No such duty featured in this April’s draft Regulations.

Special Offers For Limited Number And/Or Date
If you want to get an up-to-date AML & CTF Manual, please click on this link (http://aml-compliance-manual-ofac-sanctions-ctf.co.uk) and use the code “CCMLD4” in the payment box.

Hurry because this only valid for the first 25!

If you want to take advantage of our policy checking offer, go to our special offer HERE but hurry, this is only on sale until the 31st August!

Money Laundering Regulations 2017 Changes

You might also be interested in;

How Can You Adapt To The Growing Rate Of Regulatory Change With Confidence?

Regulatory Rules Mapping

Getting FCA Authorisation

 

Anti-money Laundering Act, Anti-money Laundering Training, Anti-money Laundering Program, Anti-money Laundering Regulations, Anti-money Laundering Policy, Anti-money Laundering Law, Anti-money Laundering And Counter-terrorism Financing Rules, Anti-money Laundering And Counter-terrorist Financing, Anti Money Laundering Book Download, Anti-money Laundering Council, Anti-money Laundering Compliance Program Policies And Procedures, Anti-money Laundering Directive Eu, Anti-money Laundering Eu, Anti Money Laundering Estate Agents, Anti Money Laundering Framework, Anti Money Laundering Handbook, Anti Money Laundering Hot Topics, Anti-money Laundering Kyc

Corporate Financial Services Regulatory Compliance Enquiry Form

compliance-risk-management-consultancy-fca-pra-specialist-expert-regulatory

Corporate Financial Services Regulatory Compliance Enquiry Form

Regulatory Compliance Requirements, Regulatory Compliance Training, Regulatory Compliance Analyst, Regulatory Compliance And Governance, Regulatory Compliance Best Practices, Regulatory Compliance Banking Industry, Regulatory Compliance Consultant, Regulatory Compliance Consulting Firms, Regulatory Compliance Companies, Regulatory Compliance Checklist

UK Regulatory Compliance Consultancy Services

Compliance Consultancy

Compliance Consultant is one of the UK’s leading FCA compliance consultancies. We help financial services firms achieve FCA & PRA Authorisation, Manage their Regulatory Obligations, Perform Compliance Audits and Past Business Reviews, SYSC Assessments and Empower their staff with bespoke and Direct Compliance Training.

Our compliance consultants are subject-matter experts and assist clients from a broad range of areas, these include, but are not limited to;

UK Regulatory Compliance Consultancy Services
UK Regulatory Compliance Consultancy Services
UK Regulatory Compliance Consultancy Services
UK Regulatory Compliance Consultancy Services
UK Regulatory Compliance Consultancy Services
UK Regulatory Compliance Consultancy Services
UK Regulatory Compliance Consultancy Services
UK Regulatory Compliance Consultancy Services
UK Regulatory Compliance Consultancy Services
UK Regulatory Compliance Consultancy Services
UK Regulatory Compliance Consultancy Services
UK Regulatory Compliance Consultancy Services

 

Compliance Audit Consultant, Bank Compliance Consultant, Compliance Consultant Dubai, External Compliance Consultant, Compliance Consultant Firms, Compliance Consultant Fca, Compliance Law Firms, Consultant Compliance Services, Compliance Consulting Firms Uk

Essential Strategies for Financial Services Compliance

Essential Strategies for Financial Services Compliance

buy now

£27.64

Introduction by Lee Werrell – Owner of this site!

A fully updated edition of the definitive guide to financial regulation In recent years, not only has the compliance field become firmly established, but it has seen staggering growth, thanks to never-ending changes in the regulatory environment. As regulation increases still further, the demand for clear guidance on navigating daily compliance issues is greater than ever. Now in its second edition, the highly successful Essential Strategies for Financial Services Compliance has been updated with the latest compliance strategies and regulatory information, making it indispensable for compliance officers, legal firms, and anyone else working with the financial services compliance function. Non-compliance represents a significant material risk for any financial services firm that fails to understand and appropriately apply regulatory standards. This Second Edition of Essential Strategies for Financial Services Compliance makes it easy to digest complex information on the regulatory framework. But this book is far from solely theoretical. A balanced approach means that both the concepts and their application are within reach. Annie Mills and Peter Haines deliver solid advice that can be applied on a day-to-day basis to manage any compliance issues that may arise. Read this book to: * Understand the conceptual basis of compliance and the current regulatory environment applicable to the financial services industry * Quickly and thoroughly learn the accepted best practices for everyday compliance * Get up to date information on the current financial regulatory environment with this new edition * Reference detailed advice as issues arise in day-to-day operations This update to the popular first edition of Essential Strategies for Financial Services Compliance will help eliminate non-compliance risk and ensure that your firm is entirely current on its ability to navigate the maze of financial services regulation.

Essential Strategies for Financial Services Compliance
Essential Strategies for Financial Services Compliance
Essential Strategies for Financial Services Compliance
Essential Strategies for Financial Services Compliance
Essential Strategies for Financial Services Compliance
Essential Strategies for Financial Services Compliance
Essential Strategies for Financial Services Compliance
Essential Strategies for Financial Services Compliance
Essential Strategies for Financial Services Compliance
Essential Strategies for Financial Services Compliance
Essential Strategies for Financial Services Compliance
Essential Strategies for Financial Services Compliance

Operational Risk Management in Banks: Regulatory, Organisational and Strategic Issues (Palgrave Macmillan Studies in Banking and Financial Institutions)

Operational Risk Management in Banks: Regulatory, Organisational and Strategic Issues (Palgrave Macmillan Studies in Banking and Financial Institutions)
Operational Risk Management in Banks: Regulatory, Organisational and Strategic Issues (Palgrave Macmillan Studies in Banking and Financial Institutions)
Operational Risk Management in Banks: Regulatory, Organisational and Strategic Issues (Palgrave Macmillan Studies in Banking and Financial Institutions)
Operational Risk Management in Banks: Regulatory, Organisational and Strategic Issues (Palgrave Macmillan Studies in Banking and Financial Institutions)
Operational Risk Management in Banks: Regulatory, Organisational and Strategic Issues (Palgrave Macmillan Studies in Banking and Financial Institutions)
Operational Risk Management in Banks: Regulatory, Organisational and Strategic Issues (Palgrave Macmillan Studies in Banking and Financial Institutions)
Operational Risk Management in Banks: Regulatory, Organisational and Strategic Issues (Palgrave Macmillan Studies in Banking and Financial Institutions)
Operational Risk Management in Banks: Regulatory, Organisational and Strategic Issues (Palgrave Macmillan Studies in Banking and Financial Institutions)
Operational Risk Management in Banks: Regulatory, Organisational and Strategic Issues (Palgrave Macmillan Studies in Banking and Financial Institutions)
Operational Risk Management in Banks: Regulatory, Organisational and Strategic Issues (Palgrave Macmillan Studies in Banking and Financial Institutions)
Operational Risk Management in Banks: Regulatory, Organisational and Strategic Issues (Palgrave Macmillan Studies in Banking and Financial Institutions)
Operational Risk Management in Banks: Regulatory, Organisational and Strategic Issues (Palgrave Macmillan Studies in Banking and Financial Institutions)

Operational Risk Management in Banks: Regulatory, Organisational and Strategic Issues (Palgrave Macmillan Studies in Banking and Financial Institutions)

buy now

£86.00

Operational Risk Management in Banks: Regulatory, Organisational and Strategic Issues (Palgrave Macmillan Studies in Banking and Financial Institutions)
Operational Risk Management in Banks: Regulatory, Organisational and Strategic Issues (Palgrave Macmillan Studies in Banking and Financial Institutions)
Operational Risk Management in Banks: Regulatory, Organisational and Strategic Issues (Palgrave Macmillan Studies in Banking and Financial Institutions)
Operational Risk Management in Banks: Regulatory, Organisational and Strategic Issues (Palgrave Macmillan Studies in Banking and Financial Institutions)
Operational Risk Management in Banks: Regulatory, Organisational and Strategic Issues (Palgrave Macmillan Studies in Banking and Financial Institutions)
Operational Risk Management in Banks: Regulatory, Organisational and Strategic Issues (Palgrave Macmillan Studies in Banking and Financial Institutions)
Operational Risk Management in Banks: Regulatory, Organisational and Strategic Issues (Palgrave Macmillan Studies in Banking and Financial Institutions)
Operational Risk Management in Banks: Regulatory, Organisational and Strategic Issues (Palgrave Macmillan Studies in Banking and Financial Institutions)
Operational Risk Management in Banks: Regulatory, Organisational and Strategic Issues (Palgrave Macmillan Studies in Banking and Financial Institutions)
Operational Risk Management in Banks: Regulatory, Organisational and Strategic Issues (Palgrave Macmillan Studies in Banking and Financial Institutions)
Operational Risk Management in Banks: Regulatory, Organisational and Strategic Issues (Palgrave Macmillan Studies in Banking and Financial Institutions)
Operational Risk Management in Banks: Regulatory, Organisational and Strategic Issues (Palgrave Macmillan Studies in Banking and Financial Institutions)

Operational Risk Management Framework, Operational Risk Management Usmc, Operational Risk Management Banking, Operational Risk Management Committee Charter

Financial Risk Manager Handbook: FRM Part I / Part II (Wiley Finance)

 

Financial Risk Manager Handbook: FRM Part I / Part II (Wiley Finance)

buy now

£94.45

Financial Risk Manager Handbook: FRM Part I / Part II (Wiley Finance)
Financial Risk Manager Handbook: FRM Part I / Part II (Wiley Finance)
Financial Risk Manager Handbook: FRM Part I / Part II (Wiley Finance)
Financial Risk Manager Handbook: FRM Part I / Part II (Wiley Finance)
Financial Risk Manager Handbook: FRM Part I / Part II (Wiley Finance)
Financial Risk Manager Handbook: FRM Part I / Part II (Wiley Finance)
Financial Risk Manager Handbook: FRM Part I / Part II (Wiley Finance)
Financial Risk Manager Handbook: FRM Part I / Part II (Wiley Finance)
Financial Risk Manager Handbook: FRM Part I / Part II (Wiley Finance)
Financial Risk Manager Handbook: FRM Part I / Part II (Wiley Finance)
Financial Risk Manager Handbook: FRM Part I / Part II (Wiley Finance)
Financial Risk Manager Handbook: FRM Part I / Part II (Wiley Finance)

The essential reference for financial risk management

Filled with in-depth insights and practical advice, the Financial Risk Manager Handbook is the core text for risk management training programs worldwide. Presented in a clear and consistent fashion, this completely updated Sixth Edition, mirrors recent updates to the new two-level Financial Risk Manager (FRM) exam, and is fully supported by GARP as the trusted way to prepare for the rigorous and renowned FRM certification. This valuable new edition includes an exclusive collection of interactive multiple-choice questions from recent FRM exams.

Financial Risk Manager Handbook, Sixth Edition supports candidates studying for the Global Association of Risk Professional’s (GARP) annual FRM exam and prepares you to assess and control risk in today’s rapidly changing financial world. Authored by renowned risk management expert Philippe Jorion, with the full support of GARP, this definitive guide summarizes the core body of knowledge for financial risk managers.

  • Offers valuable insights on managing market, credit, operational, and liquidity risk
  • Examines the importance of structured products, futures, options, and other derivative instruments
  • Contains new material on extreme value theory, techniques in operational risk management, and corporate risk management

Financial Risk Manager Handbook is the most comprehensive guide on this subject, and will help you stay current on best practices in this evolving field. The FRM Handbook is the official reference book for GARP’s FRM certification program.

Financial Risk Manager Handbook: FRM Part I / Part II (Wiley Finance)
Financial Risk Manager Handbook: FRM Part I / Part II (Wiley Finance)
Financial Risk Manager Handbook: FRM Part I / Part II (Wiley Finance)
Financial Risk Manager Handbook: FRM Part I / Part II (Wiley Finance)
Financial Risk Manager Handbook: FRM Part I / Part II (Wiley Finance)
Financial Risk Manager Handbook: FRM Part I / Part II (Wiley Finance)
Financial Risk Manager Handbook: FRM Part I / Part II (Wiley Finance)
Financial Risk Manager Handbook: FRM Part I / Part II (Wiley Finance)
Financial Risk Manager Handbook: FRM Part I / Part II (Wiley Finance)
Financial Risk Manager Handbook: FRM Part I / Part II (Wiley Finance)
Financial Risk Manager Handbook: FRM Part I / Part II (Wiley Finance)
Financial Risk Manager Handbook: FRM Part I / Part II (Wiley Finance)

UK Regulatory Financial Services Compliance Specialist Services Provider ref PRA & FCA

compliance meaning-compliance officer-compliance definition-compliance

A compliance definition is difficult to obtain other than “We define compliance within our firm as the function of identifying relevant legislative, regulatory and best practice requirements and then implementing the required changes to our systems and controls to facilitate adherence to these obligations on an ongoing basis.”

However, every firm needs external perspective and Compliance Consultant – as a leading regulatory compliance specialist consultancy have many different and adaptable services to offer.

Contact us on 0203 815 7939
Email info@complianceconsultant.org
Website http://www.complianceconsultant.org

Shock Failings In Firms’ Regulated Complaint Handling Rules

compliance-risk-management-function-consultant-consultancy

Shock Failings In Firms Regulated Complaint Handling Rules

 

 

 

 

 

 

 Are Firm’s Managing Complaints Efficiently And Learning The Lessons From ALL Complaints, Not Just Cherry Picking The Juicy Ones To Report?

The changes made to the FCA’s complaint handling rules in June 2016 are well documented.

In conclusion:

  • The ‘next business day rule’ has been extended to become a ‘three business day rule’ (where sending final response letters (FRLs) are required).
  • Firms must now send a ‘Summary Resolution Communication’ (SRC) in response to all complaints that are dealt with within three days of receipt.
  • The SRC must confirm that the complaint has been resolved and inform the customer of their rights to refer the matter to the Financial Ombudsman Service (FOS).
  • All complaints must be recorded and submitted to the FCA via their new ‘complaints return’.

The rules are designed to benefit customers by “ensuring that complaints are handled quicker, efficiently and transparently”. Firms do not need to try to resolve complaints on the same day in order to avoid reporting or sending the customer an FRL. Consequently, more time and greater consideration can be given to each individual complaint and the circumstances of the complainant. This should also support a more flexible operating model and relieve some operational triage and case management strains.

Firms lose the ability to resolve complaints without reporting them; nevertheless, where all complaints are logged and reported, firms should have access to management information (MI) that better shows their complaint population, and therefore root cause analysis (RCA) should certainly be more robust- revealing a more accurate understanding of the firm’s performance.

Presumably, there are positives for clients and the sector, but how are firms managing the changes?

Shock Failings In Firms Regulated Complaint Handling Rules
Shock Failings In Firms Regulated Complaint Handling Rules
Shock Failings In Firms Regulated Complaint Handling Rules
Shock Failings In Firms Regulated Complaint Handling Rules
Shock Failings In Firms Regulated Complaint Handling Rules
Shock Failings In Firms Regulated Complaint Handling Rules
Shock Failings In Firms Regulated Complaint Handling Rules
Shock Failings In Firms Regulated Complaint Handling Rules
Shock Failings In Firms Regulated Complaint Handling Rules
Shock Failings In Firms Regulated Complaint Handling Rules
Shock Failings In Firms Regulated Complaint Handling Rules
Shock Failings In Firms Regulated Complaint Handling Rules

WHAT HAVE BEEN THE PRACTICAL IMPLICATIONS FOR FIRMS?
Shock Failings In Firms Regulated Complaint Handling RulesTheoretically, where the firm is positive that complaints, which were being closed by the next business day, were identified and resolved fairly (and in-line with regulatory expectations), then the shifting to the new rules should be more straightforward. In this instance, the biggest change for the complaint handling department is logging the complaint correctly, and issuing an SRC to the consumer. This, however, still leads to an immediate need to present systems training to staff, and to update procedures to ensure SRCs are issued to customers in the correct manner.

The new reporting rules mean that there is now a record of every single dissatisfaction handled by the firm, and therefore fair customer outcomes and compliant complaint handling should be demonstrable in every instances. This has exposed some firms’ ability to appropriately identify and handle complaints in their front-line and client service departments, or those who do not handle complaints often. Reasons for this typically include:.

  • A training or capability gap.
  • Conflicting incentive schemes.
  • Inadequate processes and procedures.
  • Inadequate back up and oversight.
  • Issues with company conduct.

Unfortunately, this has also led to the inherent expectation that front-line staff, who might receive complaints infrequently, have the ability to serve as skilled complaint handlers. For some team members, this will feel like a change to their role, so firms ought to provide the appropriate support to individuals for them to execute effective complaint handling that meets regulatory requirements.

Additionally this, the regulatory definition of a complaint- and a firm’s treatment of it- has entered into the center stage. Previously, ‘minor’ or ‘immaterial’ complaints might be quickly dealt with and resolved without too much concern for whether the regulatory definition of a complaint had been met. Now that all complaints are recorded, firms need to be confident that complaints are being identified in line with regulatory expectations, resulting in ‘materiality’ coming into question. This serves to make the understanding of what is and isn’t a complaint an intrinsic part of the process, and comes at the same time as an increased reliance on non-skilled frontline staff to perform complaint handling.

These changes have also meant that firms’ operating models and controls have had to be increased, since added departments and complaint channels should be more closely monitored. Some firms have miscalculated the extent of the required changes.

Shock Failings In Firms Regulated Complaint Handling RulesHOW CAN FIRMS ADDRESS THE CURRENT CHALLENGES?

Firms should reevaluate their complaint handling operating model whilst considering the FCA’s expectations around a ‘fair customer outcome – at the first possible opportunity’, and whilst also reviewing their “risk appetite”. They should be comfortable that complaints will be effectively identified and handled in every front-line area, with relevant evidence of good practice recorded and retained.

Regardless of the process for complaints a firm deems appropriate, as a minimum, complaints ought to be identified successfully by front-line staff, so a level of training, guidance and support is required on an immediate and ongoing basis to reduce ‘knowledge gap’ and ‘skill fade’ threats where complaint handling is not the day-to-day job.

The expectations of staff and the firm should be assessed so as to gain insight on effective ways to align the two. As part of its suite of training pertaining to complaints, firms should also aim to improve their staff members’s contextual knowledge around why effective complaint handling is vital across the industry today. They could also use this opportunity to review their complaint handling culture, and reaffirming the crucial elements of treating customers fairly, where appropriate.

Firms should ensure that they have a clear and, most notably, consistent interpretation of a complaint which gives context and meaning to the idea of ‘materiality’, using a broad spread of real examples in line with their risk appetite.

Firms’ operational controls under the former rules (including quality assurance (QA), training & competence (T&C), MI, RCA and governance arrangements) may never give the full understanding of complaint handling across the company, leading to an increased risk of unjustifiable customer outcomes and regulatory breaches.

Therefore, in order for the firm to show compliant complaint handling to the regulator, these operational controls have to be appropriately broadened (while ensuring a risk-based approach) to give a detailed view of complaint handling in all areas. This causes updated requirements for QA and RCA frameworks, T&C schemes, MI reports, scorecards, training programmes, governance structures and agendas; to name but a few.

Finally, firms should be satisfied that their systems and infrastructure allows them to record, report and handle complaints in line with regulatory expectations. This means ensuring that calls are recorded (i.e. interactions can be evidenced), all relevant individuals have access to the firm’s complaint handling system and the system has the capacity to support effective MI and RCA.

A CONTINUED EXPERIENCE TOWARDS COMPLAINTS EXCELLENCE.

Alongside the initial challenges that were projected at the outset of PS15/ 19 and during the prior consultation, there have been some inadvertent issues arising through the pragmatic implementation of the rules which are more nuanced and tougher for firms to diagnose.

Firms wishing to gain assurance that they are reacting appropriately to these challenges can determine their strategy to the areas above to give themselves a richer picture. It is needless to say perfectly natural that problems should arise when such a significant change is executed, nonetheless it is the ability to react to these challenges with appropriate and proportionate action that will differentiate firms on the market.

If you need assessments of your complaints management, systems and controls or testing of embeddedness of your implementation, contact Compliance Consultant on

+44 (0) 203 815 7939

Shock Failings In Firms Regulated Complaint Handling Rules
Shock Failings In Firms Regulated Complaint Handling Rules
Shock Failings In Firms Regulated Complaint Handling Rules
Shock Failings In Firms Regulated Complaint Handling Rules
Shock Failings In Firms Regulated Complaint Handling Rules
Shock Failings In Firms Regulated Complaint Handling Rules
Shock Failings In Firms Regulated Complaint Handling Rules
Shock Failings In Firms Regulated Complaint Handling Rules
Shock Failings In Firms Regulated Complaint Handling Rules
Shock Failings In Firms Regulated Complaint Handling Rules
Shock Failings In Firms Regulated Complaint Handling Rules
Shock Failings In Firms Regulated Complaint Handling Rules

Questions To Ask [Important] – Regulatory Radar July 2017

featured-Ragulatory-Radar-FCA-July-2017-Mifid-Mifid2

Questions To Ask [Important] - Regulatory Radar July 2017

MiFID II Regulatory Pieces Are Falling Into Place With The FCA

The final two pieces of UK legislation implementing MiFID II were laid before Parliament on 26th June which give the FCA powers to make certain of the changes to the handbook rules (such as the financial promotion rules) and to carry out certain administrative tasks linked to implementation (such as setting position limits).

 These are the:

Data Reporting Services Provider Regulations http://www.legislation.gov.uk/id/uksi/2017/699

Markets in Financial Instruments Regulations http://www.legislation.gov.uk/id/uksi/2017/701

With that in mind, I thought I would just remind you of what’s happened and what’s on the radar that you may need some assistance with the planning and implementation of.

See Our Special Offers At The Foot Of This Article

Save Money On Your AML Manual & Governance Review!

These areas are;

  1. 4th ML Directive was effected on Monday 26thJune and becomes the Money Laundering Regulations 2017 and affects all businesses, taking over from the 2007 version. This should have already been addressed with the appropriate changes to your AML policy and procedures, but seems to still be causing some firms slight issues, especially around their governance & risk identification and mitigation (risk register).
  2. MiFID II (that which we all love) is effective 3rd January and there are some fairly seismic shifts for many asset and fund managers. For advisers, there are several fairly minor but changes that need to be reviewed. There are also some subtly changes that some firms have overlooked such as “best execution” rules and the reporting. Fees and Costs are another area for consideration. As I am sure you are aware, changes to the right governance (CofI, Inducements etc) all need to be in place for the 3rdJan.
  3. I am sure your preparations for Senior Managers & Certification Regime (SMR or SM&CR) due to be rolled out over 2018 across all firms is well underway, despite not yet having the final rules, the foundations are still going to be the same as for banks. This is going to take huge preparation on the part of all sizes of firms, such as mapping their rules, responsibilities, allocation of roles, appropriate distinctions between functional allocation, appropriate training to directors, NEDs and staff, changes to employment contracts (more in 4 below), breach reporting policy and procedures, Board oversight of conduct related issues, revised KPIs etc, changes to governance and many other aspects that I could bore you with.
  4. Further to 3 above, the SM&CR HR element has to be planned well in advance for SM&CR changes due to employment law legislation. You will need, if you haven’t already, to review the Regulations that Impact People, such as and for example; Threshold Conditions (COND), Principles for Business (PRIN). Senior Management Arrangements, Systems and Controls (SYSC), Fit and Proper Test for Approved Persons (FIT), Principles and Code of Practice for Approved Persons (APER) and Training and Competence (TC).
  5. General Data Protection Regulation (GDPR) This is a European implementation 28th May 2018 ad will take some preparation – especially on the lead gathering, newsletter management, handling, storing and processing of data, appropriate age restrictions etc, disclosure and other aspects of data management.

 

Questions to ask

MLD4

  1. Have we reviewed the definitions and procedures in accordance with the MLD4?
  2. Have we updated the CDD/EDD/SDD and Beneficial owner sections?
  3. Have we trained our staff on the changes?
  4. Is our policy up to date?
  5. Is our policy approved by the board?
  6. Would our AML/KYC/FC preparations or current arrangements stand up to independent external scrutiny?
  7. Do you need to review the ‘state of play’ within your firm?

 

MIFID II

  1. Transaction reporting – Legal Entity Identifiers – Do we understand the requirements?
  2. Information to clients – costs & charges – Are we clear on what changes are required and do we have a clear plan for making those changes appropriately?
  3. Reporting – Are we cear on the new reporting requirements?
  4. Are we happy that our existing systems can provide the new service?
  5. Advice – Are we happy with the new definition?
  6. Suitability – Are we comfortable that oour existing Suitability practices are adequate?
  7. Appropriateness – Are we comfortable that the products we sell are considered “non-complex” or do we need to make changes?
  8. Fair, clear and not misleading – if we provide future performance, do we comply with the new rules?
  9. Communication recording – Are we happy that we have a comprehensive method of recording the content and timings of communications and clearly identify the outcomes accurately?
  10. Inducements – Do we comply with the new rules? Are those we deal with complying with the new rules?
  11. Best execution – Have we made the appropriate changes in our documentation?
  12. Product governance: distribution – Have we enough information to ensure that the products and services we provide are not mis-sold?
  13. Client Agreements – Have we ensured we have a plan to amend agreements and terms & conditions documents appropriately?
  14. Have we trained our staff on the impending changes?
  15. Is our suite of policies up to date?
  16. Are our policies approved by the board?
  17. Would our MiFID II preparations or current arrangements stand up to independent external scrutiny?
  18. Do you need to review the ‘state of play’ within your firm?

 

SM&CR

  1. Have we planned, in good time, for all SMFs & CRs to receive training on the duty of responsibility, reasonable steps and the regulators’ guidance relative to them?
  2. What steps do we need to take to ensure our has the ability to provide and obtain regulatory references for SMF and Certified roles?
  3. Have we mapped our business against the regulator’s handbook so that we are aware of the impacting changes and where/who will be effected?
  4. Are our record keeping facilities set-up to retain relevant documentation for at least six years after an individual leaves the business?
  5. Have we identified potential conduct risks and implemented controls or mitigation measures?
  6. Is our risk register up to date?
  7. How do the board get made aware of conduct issues? (They are responsible for ALL conduct)
  8. Have we prepared a formal and robust documentation of the firm’s governance arrangements into responsibilities maps and statements of responsibilities, setting out board and committee structures, roles, responsibilities & escalation lines?
  9. Have we mapped existing SIF approvals onto the new SMF framework, and identifying staff potentially subject to the Certification Regime.
  10. Have we trained our staff on the impending changes?
  11. Would your SMR preparations or current arrangements stand up to independent external scrutiny?
  12. Do you need to review the ‘state of play’ within your firm?
  13. Is our Conduct Policy up to date?
  14. Is our policy approved by the board?

 

GDPR

Do we as a company understand;

 

  1. WHY the personal data processed?
  2. Precisely WHOSE personal data is processed?
  3. For each data management process, WHAT and WHEN is personal data processed?
  4. And finally, precisely WHERE is personal data processed?
  5. Is Senior management aware of and regularly discuss data protection?
  6. Are our Data Protection policies and procedures (including retention and disposal schedules);
  • in place and appropriately approved?
  • adequately monitored?
  • clear and robust compliance trail?
  • regularly reviewed adequately?
  • communicated to staff?
  1. Are our Information Security policies and procedures:
  • in place and appropriately approved?
  • adequately monitored?
  • clear and robust compliance trail?
  • regularly reviewed adequately?
  • communicated to staff?
  1. Do we have formal mechanisms in place to identify breaches and handle incidents;
  • in place and appropriately approved?
  • adequately monitored?
  • clear and robust compliance trail?
  • regularly reviewed adequately?
  • communicated to staff?
  1. Do we have clear and accessible fair processing information given to individuals?
  2. Are all our new new projects and initiatives;
  • “privacy-proofed” at the planning stage?
  • reviewed during development, testing and delivery stage, i.e. pre- and post-implementation?
  • ‘Privacy impact assessments’ are conducted when necessary?
  1. Have we trained our staff on the impending changes?
  2. Would your GDPR preparations or current arrangements stand up to independent external scrutiny?
  3. Do you need to review the ‘state of play’ within your firm?

These issues will not be changing any more, if these are not addressed immediately by firms spending a little money now, they are going to be spending absolute fortunes at the last minute. All firms will have to demonstrate “on demand” that they have everything in place.

You may find these links useful http://www.complianceconsultant.org/so-remarkably-simple-yet-detailed-and-thorough-compliance-risk-management-reference-system/ and https://www.linkedin.com/pulse/do-you-know-how-impacted-lee-werrell

Any firms that may need assistance with any of these areas can contact us for support on 0203 815 7939. Please be aware that our resources are limited and bookings for this work are already being placed. Depending on the size of your project, discounts of up to 20% are available.

If you would like any further information, please drop me a line.


Special Offers For Limited Number And/Or Date
If you want to get an up-to-date AML & CTF Manual, with 1/3rd Off please click on this link (http://aml-compliance-manual-ofac-sanctions-ctf.co.uk) and use the code “CCMLD4” in the payment box for a full 1/3rd discount! Hurry because this only valid for the first 25!

If you want to take advantage of our policy checking offer, go to our special offer at http://www.complianceconsultant.org/product/regulatory-changes-will-force-governance-reviews but hurry, this is only on sale until the 21st July!

Birth of the Office for Professional Body Anti-Money Laundering Supervision (OPBAS)

mlr2017-estate-agents-uk-hmrc-treasury

CREATION OF THE OFFICE FOR PROFESSIONAL BODY ANTI-MONEY LAUNDERING SUPERVISION (OPBAS)

Birth of the Office for Professional Body Anti-Money Laundering Supervision (OPBAS)

 BACKGROUND

On the 15th March 2017, the UK Government announced the creation of a new watchdog for anti-money laundering.

Named the Office for Professional Body Anti-Money Laundering Supervision (OPBAS), it aims to tackle the methods of financial criminals by both stepping up standards of anti-money laundering (AML) supervision and closing loopholes in guidance that can be exploited to move illicit funds.

The UK Government’s ‘Action Plan for Anti-Money Laundering and Counter-Terrorist Financing’, released in April 2016, included an objective to review and improve the effectiveness of AML and CTF supervision. Subsequently, between April and June 2016, HM Treasury undertook a review of the UK AML / CTF supervisory regime. The review involved an audit of the FCA, Serious Fraud Office (SFO), HM Revenue and Customs (HMRC) and the National Crime Agency (NCA).

A key theme running through the review was a lack of consistency and potential confusion caused by the number of supervisory bodies overseeing firms’ activity in this area. It also referred to the guidance provided by legal and accounting firms, which is sometimes conflicting in its message.

All of this has the potential to create loopholes that criminals can exploit – as such there is a need to seek a more consistent approach to both supervision and guidance. OPBAS will seek to better unify the various industry, regulatory and legislative approaches.

KEY POINTS FROM THE ANNOUNCEMENT

OPBAS will have overall responsibility for the various supervisory organisations involved to ensure consistency of approach.Birth of the Office for Professional Body Anti-Money Laundering Supervision (OPBAS)

It will also set out how these bodies can comply with supervisory standards once they are updated to incorporate requirements of the EU’s 4th Anti-Money Laundering Directive (4AMLD), due to be implemented by the UK on the 26th July 2017.

More specifically, OPBAS’s objectives are to:

  • Raise standards and ensure a consistent approach to AML supervision
  • Provide guidance to professional AML supervisory bodies on how to comply with their obligations in line with the updated money laundering regulations
  • Hold enforcement powers to penalise breaches of regulation made by professional AML supervisory bodies
  • Facilitate collaboration between supervisors and law enforcement in terms of tackling money laundering and terrorist financing

NEXT STEPS

OPBAS is due to be legislated for by the end of this year and operational from the start of 2018, and we can anticipate new guidance to be released shortly after this.

CONSIDERATIONS FOR FIRMS

OPBAS will become operational several months after the updated money laundering regulations are implemented, but firms will not want to wait until this time to make sure they are compliant.

Birth of the Office for Professional Body Anti-Money Laundering Supervision (OPBAS)The new office will sit within the FCA and operate in line with its existing governance structure. AML supervision is already an area of strong focus for regulators and was earmarked as a priority by the FCA in its 2016 / 17 Business Plan as it looked to broaden its Systematic Anti-Money Laundering Programme (SAMLP). This focus will increase into 2017 / 18.

Not only is the focus increasing in terms of regulatory output; the level of insight FCA receives back on these issues continues to increase with the implementation of REP-CRIM financial crime reporting in January 2017. This extra insight being gained by regulators will serve to enhance their view – this may manifest itself in further changes to supervision, and firms will need to continue to keep abreast of any developments.

The creation of OPBAS will mean increased scrutiny of professional AML supervisory bodies in terms of how they supervise AML and CTF compliance. This will create a knock-on effect for firms themselves, which could quickly feel the effects of this closer supervision. Following some uncertainty in terms of AML guidance from a supervisory point of view, the intention of regulators will be to ensure enforcement action is taken should deficiencies be identified – this has been a well-documented challenge in the current regulatory environment.

With the Government response on how money laundering regulations will be incorporated due in April, supervisory bodies may arguably be left with little time to interpret the regulations and revise their rules and guidance for firms in time for the 26th July and 4AMLD. This could in turn challenge firms’ ability to prepare for the changes. Staying abreast of developments in this space with the aim of prompt but proportionate action (when appropriate) should be firms’ current focus.

To help with your Anti-Money Laundering procedures as well as other Compliance support services, please contact us on 0203 815 7939

Birth of the Office for Professional Body Anti-Money Laundering Supervision (OPBAS)

Source: https://www.huntswood.com/insights/creation-of-opbas