Money laundering: further clarity provided by the Court of Appeal on the operation of the consent regime

2017 ◽  
Vol 18 (3) ◽  
pp. 72-74
Author(s):  
Daren Allen
Keyword(s):  
Money Laundering ◽  
Regulatory Enforcement ◽  
Bank Account ◽  
Content Type ◽  
Key Issues ◽  
Proceeds Of Crime ◽  
Working Day ◽  
The Uk ◽  
Court Of Appeal ◽  
Practical Implications

Purpose To summarise a key development that provides clarity for banks on the operation of the money laundering provisions in the UK Proceeds of Crime Act 2002. Design/methodology/approach The article provides the background leading up to the UK Court of Appeal hearing, the key issues in the appeal, the decision of the court and what this means for banks in the UK. Findings The Court of Appeal held that (i) where a bank suspects that money in its customer’s account is criminal property, freezes the account and seeks consent to deal with the money, the court should not intervene during the course of the seven-working-day notice period and 31-day Moratorium Period and (ii) in most cases the discretion to grant an interim declaration is unlikely to be exercised. Practical implications This decision is important for banks and brings much-needed clarity. Prior to the Court of Appeal decision, it was open to customers to challenge a bank’s decision to freeze an account (pending a response from the NCA to a consent request) on the basis that, on a balance of convenience, payments from a bank account should be permitted to be made. Originality/value Practical guidance from an experienced lawyer specialising in complex investigations, litigation dispute resolution and regulatory enforcement proceedings for financial institutions and large corporations.

Beyond placement, layering and integration – the perception of trade-based money laundering risk in UK financial services

2019 ◽  
Vol 22 (4) ◽  
pp. 614-625 ◽  
Author(s):  
Mario Menz
Keyword(s):  
Money Laundering ◽  
Financial Services ◽  
Design Methodology ◽  
Banking Sector ◽  
Trade Finance ◽  
Content Type ◽  
Proceeds Of Crime ◽  
The Uk ◽  
Practical Implications ◽  
Insight Into

Purpose The purpose of this study was to investigate the perception of trade-based money laundering in Letters of Credit (“L/C”) transactions among trade finance practitioners in the UK banking sector and to compare it to the perception of the same risk by the Financial Conduct Authority (“FCA”), the regulator of the UK’s banking sector. Design/methodology A survey was used to carry out research among financial services professionals engaged in trade finance in the UK. Findings This paper contributes to the existing literature in a number of ways. First, it investigates the perception of trade-based money laundering risk from the perspective of financial services professionals, which has not previously been done. Second, it argues that the perception of trade-based money laundering in financial services is overly focussed on placement, layering and integration, and that the full extent of the offence under the Proceeds of Crime Act 2002 is less well known. It further found that financial services firms need to improve their understanding of the nature of trade-based money laundering under UK law. Practical implications This study argues that the financial services sector’s perception of trade-based money laundering risk in trade finance is underdeveloped and makes suggestions on how to improve it. Originality/value It provided unique insight into the perception of trade-based money laundering risk among financial services professionals.

In the shadow of the dark twin – proving criminality in money laundering cases

2016 ◽  
Vol 19 (4) ◽  
pp. 447-458 ◽  
Author(s):  
Kenneth Murray
Keyword(s):  
Law Enforcement ◽  
Supreme Court ◽  
Money Laundering ◽  
Design Methodology ◽  
Content Type ◽  
Fit For Purpose ◽  
Proceeds Of Crime ◽  
Uk Supreme Court ◽  
The Uk ◽  
Practical Implications

Purpose This paper aims to highlight the persistent influence of the concept of “predicate offence” in respect of how the crime of money laundering is conceived and discussed, and to discuss how this inhibits the ability to prosecute the crime even where, as is the case in the UK, “predicate offence” is not a requirement of the relevant legislation. Design/methodology/approach Discussion of a recent UK Supreme Court judgment, R v GH, in particular, how the import of it appears to contrast with perceptions offered by the experience of two recent money laundering convictions on Scotland, where no evidence was led on establishing the money was criminal before the criminal act was libelled as money laundering. Design of modern money laundering schemes are illustrated and assessed in terms of how they can be prosecuted in the context of prevailing interpretations of the law. Findings The effectiveness of the UK money laundering offences as set out in the Proceeds of Crime Act of 2002 requires revaluation. Clarification is required in respect of how criminality in such cases can be proved. Consideration should be given to introducing new legislation targeted at the transmission of money or value under the cover of false documentation. Research limitations/implications Clarification is required on how the concept of “irresistible inference” as established by R v Anwoir can be applied to money laundering cases in light of the R v GH judgement of the UK Supreme Court. Practical implications Upgrade of law enforcement knowledge base and investigation skills is required to prosecute existing money laundering offences more effectively, but the lack of clarity as to what will suffice as proof of criminality serves to inhibit the investigation of these crimes as well as their prosecution. Social implications Protection of democracies, democratic institutions and the communities they serve from the corrupting influence of laundered criminal money through more effective prosecution of money laundering offences. Originality/value To encourage discussion on whether the relevant legislation remains fit for purpose and what practical measures can be taken to improve it.

2016 FINRA analysis: a record-breaking year for fines

2017 ◽  
Vol 18 (2) ◽  
pp. 1-8
Author(s):  
Brian Rubin ◽  
Adam Pollet
Keyword(s):  
Money Laundering ◽  
Design Methodology ◽  
Disciplinary Actions ◽  
Variable Annuities ◽  
Content Type ◽  
Compliance Officers ◽  
Expert Analysis ◽  
Key Issues ◽  
To Receive ◽  
Practical Implications

Purpose To analyze FINRA’s 2016 sanctions and cases, the issues that resulted in the most significant fines, emerging enforcement trends, and make predictions about key issues for FINRA for 2017 and beyond. Design/methodology/approach Discusses the sanctions and disciplinary actions in 2016 and prior years; details the top 2016 enforcement issues measured by total fines assessed, including anti-money laundering, variable annuities, trade reporting, books and records, and unregistered securities; explains current enforcement trends, including fines of $1 million or more, sanctions against compliance officers, and suitability cases; and analyzes three enforcement topics that will likely continue to receive heightened attention from FINRA in 2017 and beyond: restitution, cybersecurity, and senior investors. Findings The fines ordered by FINRA in 2016 reached an all-time high while the amount of restitution ordered and the number of disciplinary actions remained on par with prior years. Practical implications Firms and their representatives should heed the trends in both the substantial fines FINRA is ordering and the related enforcement issues in the cases FINRA has brought. Originality/value Expert analysis and guidance from experienced securities enforcement lawyers.

scholarly journals Accessibility and informational barriers to an age friendly railway

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Charles Musselwhite ◽  
Kelly Roberts
Keyword(s):  
Older People ◽  
Information Provision ◽  
Rolling Stock ◽  
Content Type ◽  
Rail Network ◽  
The United Kingdom ◽  
Key Issues ◽  
The Uk ◽  
Informational Barriers ◽  
Practical Implications

Purpose Against a backdrop in an increase in the number of older people in the United Kingdom (UK) and an increase in the amount of travel per person for this age group, the number of older people using the railway is in decline. The purpose of this paper is to report on an investigation is a first step towards ascertaining why through audits of issues and problems on rolling stock and station platforms. Design/methodology/approach Rolling stock and station audits were carried out by older people across a rail network in the South West of the UK. A total of 72.2 hours of auditing took place across different sizes of station and different types of rolling stock. Findings Two main themes were found across both rolling stock and station audits: accessibility and information provision. With regards to accessibility, boarding and especially alighting from the train was the key issue. Across stations and in rolling stock luminance, was a key issue for older people with places being too dark or moving from places that were bright to dark. Use of stairs at stations between platforms, especially when the station is crowded was an issue. In terms of information, key issues were found with signage being too cluttered, small, hidden and inconsistent and audible announcements being difficult to decipher. Practical implications There must be improvements made to railways to help older people feel more safe and secure using them. It is suggested step free and level accessibility is found boarding and alighting from the train, but also from station entrance to carriage. Better signage is needed throughout the station and on trains, with large repeated fonts used. Lighting needs to be revisited throughout to ensure areas are bright and well-lit both on station platforms and onboard. Further research needs to look at these findings in relation to slip, trips and fall accident rates. Originality/value There is very little research on older people’s perceptions and barriers to railway use. This adds value in being one of the only studies to do so, especially from the perspective of older people themselves as co-researchers.

scholarly journals Gendered experiences of leading and managing through COVID-19: patriarchy and precarity

2020 ◽  
Vol 35 (7/8) ◽  
pp. 737-744
Author(s):  
Sharon Mavin ◽  
Marina Yusupova
Keyword(s):  
Business School ◽  
Women Managers ◽  
Design Methodology ◽  
Content Type ◽  
Research Associate ◽  
Personal Experiences ◽  
Woman Professor ◽  
Key Issues ◽  
The Uk ◽  
Practical Implications

Purpose The purpose of this paper is to highlight key issues for women managers, leaders and precarious academic women during COVID-19 in organisations and in academy. Design/methodology/approach This paper shares the authors’ personal experiences during COVID-19 in the UK as a woman Professor and Director of a Business School and a woman Research Associate and link these with existing scholarship to reflect on areas for continued research and action. Findings This paper underlines how COVID-19 destabilises the progress made towards gender equality. Practical implications This paper outlines future avenues for research and practice as a result of experiences of COVID-19. Originality/value This paper looks at the gendered implications of COVID-19 for women across organisational hierarchies and highlights commonalities in their experiences and devastating effects of the pandemic.

The civil law: a potent crime-fighting device

2014 ◽  
Vol 17 (1) ◽  
pp. 4-16 ◽  
Author(s):  
Shazeeda Ali
Keyword(s):  
Money Laundering ◽  
Civil Law ◽  
Content Type ◽  
Asset Recovery ◽  
Legislative Framework ◽  
Potential Risks ◽  
Proceeds Of Crime ◽  
The Law ◽  
The Uk ◽  
Civil Recovery

Purpose – The purpose of this paper is to increase the awareness of attorneys-at-law about the potential risks that they may encounter as a result of the developments in “intermeddler liability”. The article is also aimed at informing attorneys about the Proceeds of Crime Act (POCA) civil recovery machinery. Design/methodology/approach – The article is divided into two parts. The first part involves an analysis of the provisions in the POCA of Jamaica that invoke a civil machinery to recover criminally obtained wealth. In addition to a review of the main provisions of POCA, an examination of recent cases in Jamaica and in the UK, which has a similar legislative regime, has been undertaken. The legislative framework for providing a remedy to a victim of crime has also been examined. The second part of the article explores developments in the law of restitution and the law relating to constructive trusts which may impact lawyers and financial intermediaries who become engaged in transactions dealing with illicit funds. Findings – The first aspect of the article focuses on the ability of the Asset Recovery Agency to follow and recover illicitly obtained property in the absence of a criminal conviction. In the second part of the article, the evolution of the law relating to “intermeddler liability”, that is, knowing receipt and dishonest assistance, has been explored. It is observed that these developments are significant in providing a victim of financial crime with a remedy where the illicit activity involves a breach of trust or other fiduciary relationship. Originality/value – Much of the focus on anti-money laundering initiatives in Jamaica is on the money laundering offence and post-conviction orders under POCA. This article seeks to highlight the power of the civil law in countering serious crime.

Managing money laundering risks in commercial letters of credit

2016 ◽  
Vol 19 (2) ◽  
pp. 158-168
Author(s):  
Ramandeep Kaur Chhina
Keyword(s):  
Money Laundering ◽  
Regulatory Requirements ◽  
Trade Finance ◽  
Content Type ◽  
Letter Of Credit ◽  
Commercial World ◽  
Proceeds Of Crime ◽  
Letters Of Credit ◽  
The Uk

Purpose The purpose of this paper is to critically examine the role of banks in detecting and mitigating money laundering risks in trade finance activities, especially in commercial letters of credit, and to answer the central question: do banks comply with regulations that are inadequate (if so, is more stringent regulation compatible with the commercial world of trade finance?), or are banks are in danger of non-compliance? Design/methodology/approach The relevant principles promulgated by international organisations as well as the law enacted in UK to prevent money laundering risks in commercial letters of credit was examined to assess banks’ compliance with their anti-money laundering (AML) obligations. The key provisions of the Money Laundering Regulations 2007, Proceeds of Crime Act 2002 and the Wolfsberg Trade Finance Principles were discussed, and the extent of banks’ compliance with these provisions was highlighted by carefully analysing the steps a bank might take at various stages of the operation of a commercial letter of credit and what the banks in fact do. The paper relies heavily on the findings of the recent study conducted by the Financial Conduct Authority (UK) to analyse the actual practice followed by UK banks in controlling money laundering risks in transactions involving commercial letters of credit. Findings The paper establishes that considering the formal nature of commercial letters of credit (which makes them independent from the underlying transaction), any stringent measures to regulate trade finance activities of a bank may destroy the effectiveness of commercial letters of credit as a tool for promoting international trade. The current law and regulations together with the Joint Money Laundering Steering Group Sectoral Guidance and the Wolfsberg Principles provide the requisite legal and regulatory framework to control money laundering risks in commercial letters of credit. The paper however establishes that the majority of banks in UK currently appear to be in danger of non-compliance with the UK AML regime and certainly need to meet their AML obligations in a more serious way. Practical implications The findings may influence banks to adopt a more vigilant approach in their trade finance activities and to undertake more responsibility in ensuring compliance with the current AML law and regulations, while highlighting that their current practice may put them in danger of non-compliance. Originality/value The paper demonstrates in an exceptional way the legal and regulatory requirements for banks to prevent money laundering risks in their trade finance activities and where, in practice, the banks are falling short of compliance with these requirements. By adopting a step-by-step approach in evaluating banks’ “current-and-must have” approach to controlling money laundering risks at various stages of a commercial letter, the paper makes a valuable contribution to the study of combating money laundering in commercial letter of credit transactions.

Slipping through the net

2018 ◽  
Vol 21 (2) ◽  
pp. 203-214
Author(s):  
Adebola Adeyemi
Keyword(s):  
Money Laundering ◽  
Financial Services ◽  
Current Approach ◽  
Content Type ◽  
Services Sector ◽  
Secondary Sources ◽  
Financial Services Sector ◽  
The Uk ◽  
Practical Implications

Purpose The purpose of this paper is to highlight the activities of the FCA with respect to the incidence of money laundering and highlight regulatory gaps. The financial services sector provides a crucial infrastructure for the promotion of wealth and innovation in the UK. This attractive infrastructure also appeals to criminals looking to launder the gains of their illicit activities. Design/methodology/approach The paper analyses the UK money laundering regime, highlighting specific challenging areas. The paper investigates the role of politically exposed persons and the use of corporate structures in promoting money laundering. In this context, it also becomes crucial to investigate the role of financial institutions and the sufficiency of their governance approach in lessening the incidence of money laundering. The paper investigates secondary sources and relies on their findings. It compares these findings to the regulatory outcomes. Findings The paper recommends steps that can be used to lessen the incidence of money laundering in the UK. From the reports evaluated, it is clear that the Financial Conduct Authority is working towards reducing the incidence of money laundering, but this could be further strengthened with the adoption of additional enforcement tools. Practical implications The paper suggests that different approaches should be used based on firm size, the type of business and the risk that a financial services firm presents to the financial sector. A large firm will need to bear more regulatory burden compared to a smaller firm. Originality/value The paper investigates the current approach to minimising the incidence of money laundering in the UK. It suggests that the regulator can guide financial services firms to meet the regulatory objectives by relying on an approach that discerns the regulatory risks presented by different firms depending on their size.

Money laundering, lawyers and President’s intervention in Zimbabwe

2017 ◽  
Vol 20 (2) ◽  
pp. 138-149 ◽  
Author(s):  
Prosper Simbarashe Maguchu
Keyword(s):  
Law Enforcement ◽  
Money Laundering ◽  
Content Type ◽  
Depth Analysis ◽  
Entry Points ◽  
Proceeds Of Crime ◽  
Temporal Measures ◽  
Soft Target ◽  
The Impact ◽  
Practical Implications

Purpose This study aims to analyse the effects of the Presidential Powers (Temporal Measures), amendment to the Money Laundering and Proceeds of Crime Act to include legal practitioners under the list of designated non-financial business and professions. Design/methodology/approach The study is a textual analysis of anti-money laundering legislation [anti-money laundering (AML) legislation] within the context of legal practice in Zimbabwe. Findings The amendment put Zimbabwe on the international standard in the fight against money laundering, as legal practitioners have become a soft target for money laundering. Despite its noble aim, in Zimbabwe there is anecdotal evidence that the AML legislation turns lawyers into watchdogs or law enforcement agents. On the contrary, the amendment prevents lawyers from falling to the mercy of organised criminals and money launderers. Furthermore, there is a dearth of empirical research that can demystify the impact of some of the provisions of this law on contested issues, such as legal professional privilege. Research limitations/implications This study aims to outline the rationale for anti-money laundering policy and law. This study will analyse how the issue has been approached in other jurisdictions such as England and Wales. The paper will then try to establish coherent principles in the prevention of money laundering. This study will also suggest a number of recommendations as to how Zimbabwe could approach some of the issues while still considering the need to balance competing influences of legal privilege and money laundering regulations. Practical implications The paper will bring this issue to the fore and initiate an informed debate, as well as provide practical talking points for legal practitioners to embrace the AML regime and to engage policymakers on the issues that need reform. Originality/value This paper provides the first in depth analysis of the money laundering legislation in the legal fraternity in Zimbabwe and goes to offer practical tips and entry points on the application of the regulations or for advocacy towards any reform as might be needed.

Lifting the veil on beneficial ownership

2020 ◽  
Vol 23 (4) ◽  
pp. 717-734
Author(s):  
Paul Michael Gilmour
Keyword(s):  
Money Laundering ◽  
Design Methodology ◽  
Developing Economies ◽  
Content Type ◽  
Intergovernmental Cooperation ◽  
Beneficial Ownership ◽  
The Veil ◽  
The Uk ◽  
Practical Implications ◽  
Insight Into

Purpose This paper aims to critically explore the challenges facing the UK in implementing registers of beneficial owners, a measure mandated by the EU’s anti-money laundering (AML) directive to enhance beneficial ownership transparency. Design/methodology/approach This study systematically reviews the literature surrounding beneficial ownership transparency to critically analyse the extent to which challenges facing the UK, impact upon its ability to successfully implement registers of beneficial owners. Findings This study demonstrates that a lack of beneficial ownership transparency facilitates money laundering by concealing corrupt wealth and frustrating authorities’ efforts to trace illicit finance. It demonstrates that implementing registers of beneficial owners may be a superficial approach to tackling the multifaceted problem of money laundering. Better intergovernmental cooperation is required to improve beneficial ownership transparency and to ensure measures to curb offshore money laundering are successful. Research limitations/implications This research focuses on one aspect of AML control from the UK’s perspective. Further work is needed to investigate the concerns from the perspective of offshore jurisdictions and how global AML rule affects developing economies. Practical implications The study informs policymakers and other professionals implementing the UK’s registers of beneficial owners to enhance future strategies and better combat offshore money laundering. Originality/value This is the only study to explore the challenges facing the UK in implementing registers of beneficial owners, thus providing novel insight into the moral, legal and practical dilemmas to imposing AML control.

Sign in / Sign up

Export Citation Format

Share Document