Anti-money laundering – blind justice or justice that turns a blind eye?

International efforts to combat money laundering, which latterly have been closely connected with frustrating tax evasion, aggressive tax avoidance and to staunch the supply of money to terrorist organisations, have been coordinated by the Financial Action Taskforce. They have resulted in various FATF Recommendations and Special Recommendations. This body of knowledge as to how to run a regime for anti-money laundering/countering the finance of terrorism (AML/CFT) has firstly been converted into law, for example via the EU Anti-Money Laundering Directives and its subsequent transposition into EU Member State law, an example of the latter being the UK’s 2017 Money Laundering Regulations.

Anti-money laundering – blind justice or justice that turns a blind eye?

May 10, 2018

International efforts to combat money laundering, which latterly have been closely connected with frustrating tax evasion, aggressive tax avoidance and to staunch the supply of money to terrorist organisations, have been coordinated by the Financial Action Taskforce. They have resulted in various FATF Recommendations and Special Recommendations. This body of knowledge as to how to run a regime for anti-money laundering/countering the finance of terrorism (AML/CFT) has firstly been converted into law, for example via the EU Anti-Money Laundering Directives and its subsequent transposition into EU Member State law, an example of the latter being the UK’s 2017 Money Laundering Regulations.

Industry campaign secures key change to FCA fees for asset finance companies

The UK’s Financial Conduct Authority is set to approve key changes to fees for regulated hire agreements that could save asset finance providers millions of pounds. In a recent update on its consultation on regulated fees for the next year, the FCA has proposed making changes that would see fees for regulated hire agreements treated in a similar way to regulated credit agreements. Currently, the FCA ‘levy’ on a £20,000 hire agreement might be £20 per year compared to £5 per year for a similar credit arrangement.

Industry campaign secures key change to FCA fees for asset finance companies

Apr 18, 2018

The UK’s Financial Conduct Authority is set to approve key changes to fees for regulated hire agreements that could save asset finance providers millions of pounds. In a recent update on its consultation on regulated fees for the next year, the FCA has proposed making changes that would see fees for regulated hire agreements treated in a similar way to regulated credit agreements. Currently, the FCA ‘levy’ on a £20,000 hire agreement might be £20 per year compared to £5 per year for a similar credit arrangement.

FCA launches mystery shopping exercise to assess motor finance sales

The UK’s Financial Conduct Authority is launching a mystery shopping exercise as part of its review of standards in the motor finance industry. The initiative comes as its latest update on the review reveals a broadly positive picture for the market. In the update, the FCA said that although demand for motor finance has grown, this has mainly been strongest for consumers with better credit ratings, who are less likely to face repayment difficulties. It added that arrears and default rates remain generally low, though they have increased moderately in recent years.

FCA launches mystery shopping exercise to assess motor finance sales

Mar 19, 2018

The UK’s Financial Conduct Authority is launching a mystery shopping exercise as part of its review of standards in the motor finance industry. The initiative comes as its latest update on the review reveals a broadly positive picture for the market. In the update, the FCA said that although demand for motor finance has grown, this has mainly been strongest for consumers with better credit ratings, who are less likely to face repayment difficulties. It added that arrears and default rates remain generally low, though they have increased moderately in recent years.

Lease accounting

Prepare now for IFRS 16 or risk being overwhelmed, companies warned

Mar 06, 2018

Companies face being "overwhelmed" with the requirements of the new IFRS 16 accounting standard unless they launch their preparation strategies now, industry experts have warned. The new standard, IFRS 16 – Leases, was issued by the International Accounting Standards Board (IASB) in 2016 and will become effective in less than a year, on January 1, 2019. The new rules require most operating leases to be recorded on balance sheets, whereas previously only finance leases were recognized. Duff & Phelps, the global valuation and corporate finance advisor, says that for several industries, such as retail, real estate, airline, transport and energy, this could well become one of the most material items on their balance sheets, with a large-scale impact on earnings before interest, taxes, depreciation and amortization (EBITDA).

BREXIT

Negotiators struggle to build bridges as Brexit looms

Nov 10, 2017

While business leaders in the UK and Europe have stressed the importance of a smooth Brexit transition to protect the economies of both sides, there are signs that negotiators are struggling to find common ground on key issues. As the Brexit deadline of March 28, 2019 approaches, this special report looks in detail at progress from both sides of the negotiating table.

 

General legal and regulatory

Finance industry calls for new information sharing powers to prevent fraud

Mar 15, 2018

Banks and card companies in the UK prevented more than £1.4 billion in unauthorised financial fraud last year, newly-released figures have revealed. Overall, £2 in every £3 of attempted unauthorised fraud is stopped, according to UK Finance, with combined losses down 5% to £731.8 million last year. There were more than 1.9 million reported cases of unauthorised financial fraud, a rise of 3% compared to the year before.