Risk and Compliance Update - 25th February

Risk and Compliance Update - 25th February

In this issue:

Data protection

Financial crime prevention


Data protection

UK data protection regime meets EU standards according to draft adequacy decisions

The European Commission has concluded that the UK ensures an essentially equivalent level of protection to the one guaranteed under the EU GDPR, Regulation (EU) 2016/679 and under Directive 2016/680/EU, the Law Enforcement Directive. The publication of the draft decisions is the beginning of a process towards their adoption. Next steps include the Commission obtaining a non-binding opinion of the European Data Protection Board and, after taking that into account, requesting approval from Member States’ representatives in the so-called 'comitology procedure'. Following that, the Commission may adopt the final adequacy decisions for the UK.

See: LNB News 19/02/2021 66.

Comment—do not count on UK data adequacy; legal challenges appear inevitable

MLex: UK businesses may be premature in raising a cheer at the European Commission’s data adequacy proposal. With a legal challenge over the process almost inevitably looming at the Court of Justice, companies might be better off taking a more cautious approach and using what could be borrowed time to press ahead with contingency measures.

See News Analysis: Comment—do not count on UK data adequacy; legal challenges appear inevitable.


ICO issues £60,000 penalty over unsolicited marketing messages

The ICO has published the monetary penalty notice that it issued to Just Hype Ltd. The £60,000 penalty is for Just Hype Ltd having instigated the sending of 1,746,632 direct marketing messages between 1 June 2019 and 12 June 2020 to customers that had not provided adequate consent in relation to the content of the marketing material.

See: LNB News 18/02/2021 57.


Financial crime prevention

FCA provides consultation feedback and updates OPBAS Sourcebook for professional body AML supervisors

The FCA has published a summary of the feedback received in response to its consultation on changes to the OPBAS Sourcebook for professional body anti-money laundering supervisors regarding criminality checks. The changes are reflected in an addendum to the Sourcebook relating to the prohibition against a person being a beneficial owner, officer or manager of a relevant firm (BOOM), or a relevant sole practitioner, unless this has been approved by a professional body anti-money laundering supervisor.

See: LNB News 24/02/2021 75.


Start preparing for Germany’s Corporate Sanctions Act

Germany’s soon-to-be-adopted Corporate Sanctions Act carries a presumption of mandatory prosecution but also a defense in cases where reasonable precautions fail to prevent non-managers from committing crimes, so companies should start putting such compliance programmes into place now, say lawyers at Arnold & Porter.

See News Analysis: Start preparing for Germany’s Corporate Sanctions Act.


UK Finance updates its UK Sanctions Statutory Instruments Review

UK Finance has updated its UK Sanctions Statutory Instruments Review, adding a review of the Misappropriation (Sanctions) (EU Exit) Regulations 2020 (at p278) and updating the legislation table (at p551).

See: LNB News 19/02/2021 72.

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About the author:
Allison is a former partner of Shoosmiths, with extensive experience of legal management and practice compliance.