Abstract
Welcome to Banking Bites! That is our brief abstract flagging key developments within the UK that we hope will inform your actions in your market.
This version covers:
- Paperwork produced for UK employment courtroom proceedings may very well be disclosed
- UK Authorities adjustments the record of excessive threat third international locations
- UK regulators focussed on cryptoasset publicity
- UK Authorities to introduce second Financial Crime Invoice
- Additional Russian people and industries have turn into the goal of UK and US sanctions
- Classes Discovered: US and UK authorities occupied with using non-firm accredited messaging platforms for enterprise communications
When you have any questions or suggestions, please get in contact.
1. Paperwork produced for UK employment courtroom proceedings may very well be disclosed
In a latest resolution by the UKs Employment Appeals Tribunal involving a whistleblower, the tribunal held that paperwork produced in the middle of proceedings may very well be handed over to a newspaper, on its request. The case was pretty reality particular however chances are you’ll wish to talk about how this may affect your inside whistleblower insurance policies.
Polly James.
2. UK Authorities adjustments the record of excessive threat third international locations
With impact from 29 March 2022, the record of excessive threat third international locations for the needs of the UK’s anti-money laundering regime modified barely. Chances are you’ll want to talk about how this impacts your AML/CTF insurance policies.
Naomi Miles.
three. Regulator give attention to cryptoasset publicity
On 24 March 2022, the UK’s monetary providers regulators (the FCA and PRA) coordinated their efforts to remind regulated entities of their obligations when interacting with or uncovered to cryptoassets and associated providers. That is in response to the publication by the Financial institution of England of its Monetary Stability in Focus report and abstract of responses to its Dialogue Paper on New Types of Digital Cash. The expectation is that corporations will tackle the function of setting out clearly what isn’t and what’s regulated for his or her clients. The FCA famous quite a lot of issues that regulated corporations dealing in cryptoassets ought to take into account. These included: readability with clients, applicable checks and controls, prudential issues and worldwide co-operation. The PRA wrote an open letter to CEOs highlighting the varied steps to be taken in an effort to adjust to regulatory obligations close to cryptoassets. These included having sturdy threat controls, notably guaranteeing PRA-approved particular person is actively concerned in reviewing and signing off threat evaluation framework for companies with crypto-exposure.
The place corporations are doing enterprise within the UK with cryptoasset companies, they’re anticipated to have the ability to adequately determine, assess and handle the dangers and exposures from cryptoassets.
Daniel Csefalvay
four. Authorities to introduce second Financial Crime Invoice
The UK Authorities plans to introduce a second Financial Crime Invoice this yr and has expressed intentions to make use of this to “forestall the abuse of restricted partnerships, create new powers to grab crypto-assets from criminals and usher in measures to offer companies extra confidence to share info on suspected cash laundering.” We anticipate this to be of great curiosity to all corporations with UK operations and shall be monitoring developments.
Naomi Miles
5. Additional Russian people and industries have turn into the goal of UK and US sanctions
The UK has focused quite a lot of key Russian industries with financial sanctions. These industries embody Russian Railways and defence firm Kronshtadt, the principle producer of Russian drones. A variety of Russian banks have additionally been focused. We’ve seen quite a lot of people additionally focused by the sanctions together with the Russian International Minister’s step-daughter and the de facto “mayor” of Melitopol by the Russian army. A number of of the latest designations have been launched underneath the brand new pressing process underneath the newly handed Financial Crime (Transparency and Enforcement) Act 2022. Which means that they apply for a interval of 56 days, until the minister certifies that the brink situations proceed to be met earlier than the tip of that interval. A number of normal licences have been granted within the UK to allow transactions to be wound down.
Sarah Klein, Chris Bryant, Ursula Johnston or Sonja Hainsworth
6. Classes Discovered: use of non-firm accredited messaging platforms for enterprise communications
We’re seeing growing curiosity from UK and US regulators in using non-firm accredited messaging platforms, equivalent to WhatsApp, notably from US authorities investigating staff’ behaviour. Notably, such authorities are looking for copies of such messages from private telephones and their ambit of curiosity is wider than may initially be imagined. While many corporations could have clear insurance policies and procedures on using unapproved, we advocate: (i) taking each alternative to bolster that message; (ii) guaranteeing that senior management in enterprise groups are additionally personally reminded of their duty to set an instance by their very own actions; and (iii) encouraging escalation within the occasion that staff take into account firm-approved communications platforms may very well be improved and/or determine use of non-firm accredited platforms.
On this context, we now have intensive expertise of responding to and managing requests from UK and US authorities for information from private telephones.
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