Risk & Compliance weekly highlights - 24th September 2021

Risk & Compliance weekly highlights - 24th September 2021

In this issue:

Risk & Compliance forecast

AML and counter-terrorist financing Crime prevention


LexTalk®Risk & Compliance: a Lexis®PSL community

Networking and forum events


Risk & Compliance forecast

Our new Risk & Compliance forecast (as at 21 September 2021) is now live. This month, we report on issues including (1) the SRA practising certificate renewal exercise; (2) frozen assets reporting; and (3) the future of UK data protection and ePrivacy law. You can rest assured we’re tracking forthcoming regulatory changes so you can plan ahead.

See Practice Note: Risk & Compliance forecast as at 21 September 2021.


AML and counter-terrorist financing

HM Treasury publishes consultation responses and policy paper on the Economic Crime Levy

HM Treasury has published the outcomes of its consultation on the Economic Crime (Anti-Money Laundering) Levy, which would be paid by entities subject to the Money Laundering Regulations to help fund new government anti-money laundering (AML) action and help deliver the reforms committed to in the 2019 Economic Crime Plan. The government has decided that AML regulated entities will first be charged the levy during the year 1 April 2022 to 31 March 2023. The government has also published a policy paper introducing the draft legislation.

See: LNB News 22/09/2021 48.

OPBAS report notes differing levels of achievement in AML supervision

The Office for Professional Body Anti-Money Laundering Supervision (OPBAS) has released its latest report on progress made in tackling money laundering by professional body supervisors over the past year. OPBAS says supervisors of the accountancy and legal sectors have improved in recent years to achieve a level of compliance with the technical requirements of the MLRs, but the report notes differing levels of achievement and some significant weaknesses.

See: LNB News 20/09/2021 62.

FATF publishes details of webinar on money laundering from environmental crime

The Financial Action Task Force (FATF) has published details on its upcoming webinar on money laundering from environmental crime, following its report on the same topic, which was published in June 2021. The webinar is expected to discuss how to protect the environment, preserve natural resources and overcome challenges such as the lack of governmental prioritisation, limited awareness, de-risking, and limited domestic and international co-ordination. The webinar will take place on 30 September 2021 at 12.00 pm.

See: LNB News 20/09/2021 70.


Crime prevention

OFAC settlement extends sanctions reach beyond US dollar

The recent Office of Foreign Assets Control (OFAC) settlement with JC Flowers & Co over sanctions arising from non-US currency services provided by its Romanian bank subsidiary extends OFAC’s reach outside the US financial system, and highlights the need to educate foreign affiliates about US sanctions compliance, say lawyers at Arnold & Porter.

See News Analysis: OFAC settlement extends sanctions reach beyond US dollar.

US Congress to tackle anticorruption legislation, including bill to outlaw foreign bribe solicitation

MLex: A slate of US anticorruption legislation, including a bill that would outlaw the solicitation of bribes by foreign officials, awaits Congress as it returns from its summer recess. The bills enjoy a better political environment than similar measures in the past after the formation of a bipartisan anti-kleptocracy caucus and a renewed White House interest in fighting corruption.

See News Analysis: US Congress to tackle anticorruption legislation, including bill to outlaw foreign bribe solicitation.

Treasury Committee to question online technology giants on economic crime

Representatives of major online platforms Google, Facebook, Amazon and eBay will appear before the Treasury Committee from 2:15 pm on 22 September 2021. This session intends to facilitate the Committee’s inquiry reviewing progress in combatting economic crime, and exploring anti-money laundering systems, the sanctions regime, and how consumers are affected by the issues. Members of Parliament are likely to use the session to explore topics including what large online platforms are doing to prevent online advertising of scams and whether they are currently enabling fraud, the implications for platforms and site users of increasing regulation, and the current role of regulators including the Financial Conduct Authority.

See: LNB News 21/09/2021 60.


Additional Risk & Compliance updates this week

Beazley’s cyber claims expert cites ransomware spike

Law360: Ransomware risks have grown more complex over the past year as cyber criminals increasingly rely on shaming tactics to force victim companies to pay. Data breaches and business network interruptions are no longer the main risks contributing to rising cyber insurance claims. There is also reputation damage when a hacker threatens to publish stolen data online.

See News Analysis: Beazley’s cyber claims expert cites ransomware spike.

CLLS and Law Society response to Law Commission consultation on corporate criminal liability reform

The City of London Law Society (CLLS) has published a response by a Joint Working Party of the Company Law Committees of the CLLS and the Law Society (the Committees) to the Law Commission’s discussion paper on corporate criminal liability. The response focuses on the company law aspects of the issues raised in the discussion paper and makes additional points to be considered. In particular, it calls for certainty for company directors of the required elements for imposing criminal liability and for potential reforms to be proportionate, highlighting the risk of the UK becoming less attractive to companies if disproportionate legislation creates significant compliance burden and increased costs.

See: LNB News 22/09/2021 54.

UK Finance publishes fraud report showing 30 per cent rise in losses

UK Finance has published its fraud report on the first half of 2021 showing the scale of fraud taking place and the criminal trend towards authorised push payment (APP) fraud which includes investment, romance and purchase scams through phone calls, messages and emails to trick people into providing personal details. The report indicates that APP fraud increased by 71% and for the first time, overtook card fraud losses and general fraud losses had increased by 30% compared to the first half of 2020.

See: LNB News 22/09/2021 19.



Lexis®PSL Risk & Compliance has a dedicated area on the Key Resources section of the home page that tracks interesting and important cases, legislation, consultations and other key developments in the world of Risk & Compliance. For more information, see: Risk & Compliance forecast as at 17 August 2021.


LexTalk®Risk & Compliance: a Lexis®PSL community

Collaborate and network with a community of expert lawyers

LexTalk® is an online community forum which gives Lexis®PSL subscribers the opportunity to post questions, hold conversations, participate in discussions and share best practice. It has been designed to provide a secure place for legal professionals to discuss legal developments, offer and receive peer support, and gain a sense of up-to-date market practice and advances in real-time. You can access and post questions on all of the dedicated practice area forums, including a dedicated community for Lexis®PSL Risk & Compliance.

Click here to sign up and meet like-minded community members, create a profile, connect, share, and start participating today! Alternatively, you can access LexTalk® on the key resources tab on your Practice Area home page.


Networking and forum events

There’s no need to feel isolated if you’re working from home—join one of our virtual networking or forum events. Even if you aren’t working from home, take some time to network with your peers, find out what challenges they’re facing and how they are meeting those challenges.

3 November 2021

Your essential regulatory and commercial news update

Register now to attend

We are almost a year into Brexit and settling into a new way of life post lockdown. Parts of the economy are rebounding after a tough 18 months. Yet challenges will remain, alongside renewing optimism. What should be on your radar to best support your organisation moving forward? Join us as we highlight the key priorities for legal departments from recent government and regulatory guidance updates and recommended practical next steps to consider.

8 December 2021

The fight against modern slavery

Register now to attend

40 million people are estimated to be trapped in modern slavery worldwide. 1 in 4 of them are children. 71% are women and girls. 10,000+ were identified as potential victims by the authorities in the UK in 2019. Join us as we welcome guest speakers and senior counsel to discuss the critical role you can play as senior counsel in helping in the fight against modern slavery. This is not only a moral obligation it is a regulatory obligation.

26 January 2022

The effective leader— how to lead amid disruption and complexity

Register now to attend

This free-to-join forum brings together in-house lawyers working solo, or in smaller teams, to network and learn from one another. It is a chance to connect, debate topical issues and stay ahead of the latest regulatory and legal commercial updates for legal teams. Held in partnership with Flex Legal, Radius Law and Crafty Counsel.

Various dates

LexisNexis® Aspire Forum for Junior In-house Lawyers

To register your interest in joining the events, sign up as an Aspire member today

Aspire is a professional development and networking forum for junior in-house counsel. We have several events planned for the new year to continue supporting you through these uncertain times and provide a platform for you to connect with your peers. Events take place at the same time each month, from 5pm to 6.30pm.


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