National Risk Assessment of Money Laundering and Terrorist Financing 2020

By Kyte Ekstrom | AML, Compliance, Financial Industries, FinTech, News | 0 Comments

If you’ve only just got up to speed with the implementation of the provisions of the 5th AML directive in 2020, and the UK’s Sanctions and AML Act in 2018 (which came into force at the end of the UK’s Brexit transition period) then news that HM Treasury and the Home Office have recently jointly published a third National Risk Assessment (NRA) is hardly going to be music to your ears!

The NRA document, published in December 2020, follows on from the previous UK NRA report published in 2017 and is key for all firms that operate in the UK who are subject to Money Laundering Regulations (MLR’s). The report reiterates the need for more to be done regarding anti-money laundering (AML) and counter terrorist financing (CTF) in the UK, including: the application of a risk based approach to supervision, deficiencies in the UK suspicious activity reporting (SAR) regime, and accuracy of industry data held on Companies House.

The following sectors have retained a ‘high’ risk score in the 2020 NRA:

  • financial services (‘High’ for both money laundering and terrorist financing)
  • accountancy services (‘High’ for money laundering)
  • legal services (‘High’ for money laundering)
  • companies and partnerships (‘High’ for money laundering)
  • cash (‘High’ for both money laundering and terrorist financing)
  • money services businesses (‘High’ for both money laundering and terrorist financing)

Other sectors which have been assigned a higher risk score in the 2020 NRA, include:

  • Cryptoassets (increased from ‘Low’ for both money laundering and terrorist financing in 2017 to ‘Medium’ in 2020).
  • The property sector (increased from ‘Medium’ for money laundering from 2017 to ‘High’ in 2020

What does this mean for regulated firms subject to MLR’s?

The risks identified in the NRA need to properly understood by a firms senior management and the Money Laundering Reporting Officer (MLRO), paying particular attention to the threats posed to the firms relevant area of business. Regulated firms must conduct their own firm-wide risk assessments, taking into consideration a number of risk factors including the NRA. Firms should be reviewing their firm-wide risk assessment at least on an annual basis and making necessary changes to their internal controls.

National Risk Assessment of Money Laundering and Terrorist Financing 2020

If reading and putting into action the AML requirements of the latest NRA are as appealing as a rectal examination, let FinTech Compliance do the donkey work for you, and we promise the whole ordeal will be painless!

Why choose Fintech Compliance?

We are the only compliance consultancy in the UK to specialise exclusively in fintech, meaning we understand your business and your needs. Our dynamic team all hold industry qualifications and are up to date with the latest AML compliance regulations regarding all spheres of technology based, and alternative finance companies.

Our award-winning services include:

Comply-Audit

A deep dive look into your businesses activities and processes to determine the level of compliance required in order to fulfil regulatory requirements. Think of this service as a ‘health check’, which can range from checking on one element of your business or a full-firm-wide review.

Comply-Lite

Our cost-effective retainer service for firms with low compliance requirements.

Comply-Retainer

This popular service is the comprehensive way to ensure your firm remains compliant.  Providing you with periodic risk-based compliance reports focused on specific areas of the business, as well as any other ongoing advice or compliance assistance required.

Comply Ad hoc

Perfect for situations when you need assistance with one-off issues which require efficient and effective resolution. Comply – Ad hoc incorporates assistance with any regulatory/compliance issues including the following:

  • Variation of permission applications
  • Change in control applications
  • Review of policies and procedures for compliance with relevant regulations
  • Independent, external compliance audits
  • Compliance training
  • Compliance gap analysis
  • Adding or removing Approved Persons from the FCA register
  • Assistance with GABRIEL reporting
  • AML/KYC issues
  • Ongoing capital calculations
  • “Passporting” applications

Bespoke Training

Providing you with training services specific to your business and activities. With financial regulation constantly evolving, it is imperative that your firm keeps up-to-date with its requirements, including maintaining the competency of staff. Some of the training services we currently provide to businesses include:

  • Introduction to compliance
  • AML
  • Market Abuse
  • Data Protection
  • Anti bribery and corruption
  • Financial promotions

To find out more about Fintech Compliance, our services, and how we can help you stay compliant, get in touch today to speak to one of our fully qualified advisors> Get In Touch

Tags: , , , ,