Risk and Compliance Update — 12th November 2020

In this issue:

Data protection

Coronavirus

AML & CTF

Financial crime prevention

Sanctions & export controls

LexTalk®Risk & Compliance: a Lexis®PSL community

Data protection

EDPB adopts detailed recommendations on implications of Schrems II

The European Data Protection Board (EDPB) has adopted recommendations on measures that supplement international transfer tools as well as recommendations on the European Essential Guarantees for surveillance measures. The basic methodology identified in the EDPB’s initial FAQs on Schrems II has been carried across to the new recommendations. However, the tests applied at various stages of the methodology are now worded differently. The EDPB has also made it clear that in assessing your international transfer, you cannot rely on subjective factors such as the likelihood of public authorities seeking to access the personal data in question in a manner not in line with EU standards. We are reviewing all content in our International transfers subtopic as a consequence of the EDPB recommendations.

See: LNB News 11/11/2020 75.

ICO publishes new guidance on criminal offence data under the GDPR

The Information Commissioner's Office (ICO) has updated its guidance on the processing of criminal offence data under the General Data Protection Regulation, Regulation (EU) 2016/679 (GDPR). The updated general guidance includes a link to new detailed guidance on certain aspects.

See: LNB News 06/11/2020 13.

Germany seeks to break ePrivacy Regulation deadlock

MLex: Deutsche Telekom, Orange, Vodafone and other telecoms companies and internet platforms may face revised EU rules aimed at protecting privacy and security over communication networks, as EU officials try to break a deadlock that has dragged on for almost four years. Germany, which is chairing meetings between the EU’s national governments in the second half of the year, will present a revised text that could pave the way for a general agreement by EU governments.

See News Analysis: Germany seeks to break ePrivacy Regulation deadlock.

Coronavirus

Government updates guidance for working amid new coronavirus (COVID-19) lockdown

The Department for Business, Energy & Industrial Strategy and the Department for Digital, Culture, Media & Sport have updated the guidance on working safely during coronavirus (COVID-19) for various sectors. The guidance states that during the period of new restrictions in England (5 November to 2 December 2020) where staff can work from home, they must do so. The guidance also confirms that national restrictions supersede the contents of the individual guidance documents, in particular where the document refers to ‘local COVID alert levels’.

See: LNB News 06/11/2020 56.

AML & CTF

Council of the EU sets out expectations for role of an EU-level AML/CFT supervisor

The Council of the EU has published its conclusions on anti-money laundering and countering the financing of terrorism (AML/CFT), as approved by the Council in a written procedure ended on 5 November 2020. The Council sets out in detail its position on the establishment of an EU-level AML/CFT supervisor.

See: LNB News 06/11/2020 48.

HMRC updates on 5MLD and Trust Registration Service progress

HMRC has announced that, following the conclusion of the technical consultation on the Fifth Money Laundering Directive (5MLD) and Trust Registration Service (TRS) on 21 February 2020, the Money Laundering and Terrorist Financing (Amendment) (EU Exit) Regulations 2020, SI 2020/991, have come into force partly on 6 October 2020. The proposed regulations were considered by the House of Commons European Statutory Instruments Committee and the House of Lords Secondary Legislation Scrutiny Committee before being laid before Parliament on 15 September 2020.

See: LNB News 10/11/2020 29.

Financial crime prevention

SFO will take ‘proactive’ role in investigating corruption, intelligence chief says

MLex: The Serious Fraud Office (SFO) is to take a ‘more proactive’ role in investigating corruption cases, using a mixture of human intelligence, technology and whistleblower reports, their intelligence chief has said.

See News Analysis: SFO will take ‘proactive’ role in investigating corruption, intelligence chief says.

UK inches toward corporate criminal liability law reform

Law360, London: Outdated laws on corporate criminal liability face fresh scrutiny in an independent review beginning this week, a move that drew criticism from lawyers for further delaying long-promised reforms to make it easier to prosecute companies for fraud and economic crime offences.

See News Analysis: UK inches toward corporate criminal liability law reform.

Sanctions & export controls

Cyber sanctions—further Brexit transition guidance from Foreign, Commonwealth & Development Office

The Foreign, Commonwealth & Development Office has published new guidance to assist individuals in implementing and complying with the Cyber (Sanctions) (EU Exit) Regulations 2020, SI 2020/597, in line with the Sanctions and Anti-Money Laundering Act 2018, to help stakeholders prepare for the end of the transition period and beyond. Further new and updated guidance may be issued as the transition period progresses, so stakeholders are advised to monitor these pages for updates.

See: LNB News 05/11/2020 57.

UK Finance publishes reviews of new UK sanctions rules

UK Finance has published a number of papers reviewing new UK sanctions regulations, as EU sanctions legislation and regulations will cease to have UK effect at the end of the Brexit transition period. The UK legislation is designed to replace the current EU-derived legislation, but it also allows the UK to finesse the regimes with language that was not possible via the EU legislation. The overall review of the UK legislation sets out areas where the requirements, language or general policy can cause interpretation to expand or contract. The review is supplemented by separate reviews of individual jurisdictional and thematic sanctions regimes. The reviews aim to provide a helpful resource for financial institutions and other firms with a responsibility to comply with UK sanctions legislation either in the UK or overseas.

See: LNB News 06/11/2020 30 and LNB News 09/11/2020 46.

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