Bribery, fraud and anti-money laundering | UK Regulatory Outlook October 2024

Guidance on information sharing measures in ECCTA 2023

The UK government has published guidance on the information sharing measures in the Economic Crime and Corporate Transparency Act 2023 (ECCTA) which came into force on 15 January 2024.

The ECCTA allows the direct and indirect sharing of information between businesses in the anti-money laundering regulated sector to prevent, detect and facilitate the investigation of economic crime.

The guidance sets out:

• provisions to ensure that businesses comply with the new measures;
• practical considerations for businesses including mechanisms for cross-sector sharing; and
• requirements for law enforcement reporting, UK General Data Protection Regulation (GDPR) compliance, and customer redress.

Regulated firms, statutory and non-statutory professional body supervisors and trade bodies are encouraged to consider how they can apply the overarching principles in the guidance to develop a consistent approach to sharing within their own sector.

Speech on FCA's evolving approach to enforcement

Therese Chambers, Financial Conduct Authority (FCA) joint executive director of enforcement and market oversight, delivered a speech at the AFME Annual European Compliance and Legal Conference. Ms Chambers outlined the FCA's plans to take a data and technology-driven approach, streamline its caseload and focus on identifying cases where there may be conduct creating the greatest risk of harm.

The speech also addressed the industry response to its February consultation paper, which proposed publishing investigation announcements, including the identity of the individual or firm subject to investigation. The FCA "heard loud and clear" that the criteria consulted on "were too high level and lacked specificity" and clarified that it would take a case-by-case approach, including consideration of the potential impact of an announcement on the firm.

In a separate speech, the FCA's chief executive, Nikhil Rathi, confirmed that the regulator will provide "more data and case studies" on how a public interest test could work in practice in November, and that the board plans to take a final decision on the proposals in early 2025.

See Osborne Clarke's response to the consultation.

JMLSG AML and CTF guidance on wholesale markets

The Joint Money Laundering Steering Group (JMLSG) published revisions to Sector 18 (wholesale markets) in Part II of its anti-money laundering and counter-terrorist financing guidance for the financial services sector.

The revisions, which were open for consultation in April 2024, have been submitted to HM Treasury for ministerial approval.

The revised guidance can be found the JMLSG's revisions webpage.