Risk and Compliance Update - 4th March

Risk and Compliance Update - 4th March

In this issue:

 

Data protection

Financial crime prevention


 

Data protection

 

UK data adequacy decisions due to receive EDPB opinion in mid-April

MLex: The European Data Protection Board (EDPB) plans to present its opinion on proposed data adequacy decisions for the UK in mid-April 2021.

See News Analysis: UK data adequacy decisions due to receive EDPB opinion in mid-April.


 

ICO calls on business to prepare for Children’s Code

The Information Commissioner’s Office (ICO) has called on businesses to act now to ensure they are ready when the Children’s Code comes into force in six months. The Code comprises 15 standards to be met when it comes to protecting children’s data online. The ICO has undertaken industry research to gauge the extent to which businesses and services understand the Code, the results of which will be published in May 2021, and preliminary analysis suggests many businesses have not progressed past the preparation stages yet.

See: LNB News 02/03/2021 103.

The ICO’s Children’s Code team has launched a call for ideas and examples of privacy information designs which cover some or all of the good practice outlined in the Children’s Code transparency standard. The ICO is keen to hear from stakeholders including online services, children’s rights advocates, designers and academics by 11 pm 30 April 2021. Submissions can cover any relevant sector and be speculative designs, early-stage prototypes or projects already in use.

See: LNB News 02/03/2021 20.


 

UK seeks new Information Commissioner with focus on post-Brexit overhaul of data protection rules

MLex: The UK is on the hunt for a new Information Commissioner who is up to the task of rewriting the country’s data protection laws to be more flexible and business-friendly after Brexit.

See News Analysis: UK seeks new Information Commissioner with focus on post-Brexit overhaul of data protection rules.


 

ICO publishes Valca Vehicle and Life Cover Agency Ltd notices

The ICO has published an enforcement notice and a monetary penalty notice to Valca Vehicle and Life Cover Agency Ltd. The £80,000 fine comes after a total of 95,004 unsolicited direct marketing messages were received by subscribers between 15 June 2020 and 20 July 2020, resulting in 114 complaints.

See: LNB News 25/02/2021 77.


 

 

Financial crime prevention

 

EBA publishes final revised guidelines on money laundering and terrorist financing risk factors

The European Banking Authority (EBA) has published final revised guidelines on money laundering and terrorist financing risk factors. The revisions take into account changes to the EU anti-money laundering and counter-terrorism financing legal framework and address new risks, including those identified by the EBA’s implementation reviews. In addition to strengthening financial institutions’ risk-based approaches to AML/CTF, the revisions support the development of more effective and consistent supervisory approaches where evidence suggested that divergent approaches continue to exist.

See: LNB News 01/03/2021 84.


 

FATF seeks views on proliferation financing risk assessment and mitigation guidance

The Financial Action Task Force (FATF) has opened a consultation on its proposed guidance on proliferation financing risk assessment and mitigation. The guidance is being developed to help both the public and private sectors implement new requirements ‘to identify, assess, understand and mitigate proliferation financing risk as defined in Recommendation 1 and its Interpretive Note. The guidance seeks to assist both sectors in conducting a risk assessment in the context of proliferation financing, and applying corresponding risk mitigation measures’. The FATF welcomes views on the content of the guidance, especially on the areas of focus it outlines. FATF is particularly interested in responses from financial institutions and designated non-financial businesses and professions (DNFBPs). The deadline for responding is 9 April 2021.

See: LNB News 02/03/2021 85.


 

FATF publishes comments from G20 Finance Ministers Meeting

The FATF has published comments from the G20 Finance Ministers and Central Bank Governors Meeting on 26 February 2021. FATF President, Dr Marcus Pleyer commended the Italian Presidency’s focus on digitalisation in financial services and said the FATF will ‘contribute to the Italian Presidency’s priority on financial inclusion’. The FATF will also continue working on its guidance on digital ID, will launch a review of the global implementation of standards on virtual assets and stablecoins, and will analyse the opportunities and challenges of digital transformation for anti-money laundering. Dr Pleyer added that ‘The FATF stands ready to support the G20 through work on environmental and climate crime, such as illegal deforestation and illegal wildlife trade’.

See: LNB News 01/03/2021 83.


 

Mitigate key US FCPA risks with tailor-made compliance 

Multinational companies should take a pragmatic approach to US Foreign Corrupt Practices Act (FCPA) compliance by being aware of key risk areas (such as inappropriate gift-giving, liability for third-party actions, and countries with recurring corruption issues) and implementing custom-designed procedures that evolve with their operations, says Howard Weissman at Miller Canfield.

See News Analysis: Mitigate key US FCPA risks with tailor-made compliance.

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