Two men who made millions from selling fake paintings to vulnerable and elderly victims have been jailed following a six-year money laundering investigation. Behrad Kazemi and Raj Nasta were sentenced at the end of March to a combined seven years’ imprisonment for their role in selling fake art. The investigation began in April 2018 when Sussex Police received fraud reports from several people who had been cold called by an asset management firm, who advised them to invest in artworks rather than making traditional investments. Victims were targeted from October 2016 when they received calls f ..read more

Prominent UK-based electronic money company Transactive Systems Ltd will cease operations after a decision by regulators to revoke its licence amid rising concerns over money laundering. The move comes after a rigorous investigation over the past few years by regulatory bodies into the firm’s anti-money laundering (AML) practices. Last year, the Bank of Lithuania, which had granted subsidiary company Transactive Systems UAB its operating licence, fined the payments firm €280,000 and revoked its licence for “seriously and systematically” infringing AML and counter-terrorist financing requiremen ..read more

As Bitcoin and other cryptocurrencies increase in popularity as a payment method, so does the associated risk of them being exploited for money laundering and other criminal activities. In this article, we look at how crypto is regulated for anti-money laundering (AML) purposes in the UK. What is cryptocurrency? Cryptocurrency is a virtual or digital currency that allows people to make payments through an online system. It eliminates the need to carry physical money and is not reliant on a central authority, such as a bank, to uphold it. Bitcoin, which launched in 2009, was the first digital c ..read more

The UK government has introduced a new unit within the Environment Agency to tackle money laundering and other criminal activity in the country’s waste sector. The Economic Crime Unit will be tasked with investigating money laundering offences and other financial crimes in a bid to drive out criminals operating in the industry. Waste crime is thought to cost the UK economy around £1 billion annually and has been described as a “blight” on the community. Alan Lovell, Chair of the Environment Agency, said: “Waste crime is a blight on communities and our environment. By undermining legitimate bus ..read more

The Financial Conduct Authority (FCA) has set out its plans for a new regulatory regime for businesses involved in the supply of cash access services and operation of cash access facilities in England and Wales to ensure consumers can maintain access to cash. Under the FCA’s plans, designated banks and building societies, the Post Office, and operators of payment systems through which cashback is provided would be required to assess and fill gaps in cash access provision that significantly impact personal customers and small and medium-sized enterprises (SMEs). The assessments will consider lo ..read more

Heralded as a landmark piece of legislation, the Economic Crime and Corporate Transparency Act received Royal Assent on 26 October 2023.  The Act aims to combat money laundering in the UK by empowering Companies House to play a more significant role in tackling economic crime and supporting economic growth.   It addresses the issue of businesses being established under fictitious identities and hopes to improve transparency by including more accurate and trusted information on Companies House registers.  With another raft of new rules due to be introduced in the next few we ..read more

Enhanced due diligence (EDD) is a set of additional checks regulated firms must undertake as part of their Anti-Money Laundering (AML) requirements if a customer is identified as high-risk.  Effective due diligence can prevent financial crime and help minimise the risk that could arise from doing business with certain customers.   In this article, we answer some frequently asked questions about enhanced due diligence.  What is enhanced due diligence (EDD)?  Enhanced due diligence (EDD) is an extension of a company’s Know Your Customer (KYC) and customer due diligence ..read more

The UK’s Register of Overseas Entities (ROE) has received more than 30,000 registrations since its inception, the government has revealed.  The Register, which is administered by Companies House, came into force in the UK on 1 August 2022, following Russia’s invasion of Ukraine, and was established to increase transparency in the ownership of overseas entities that own UK land.  Overseas entities who want to buy, sell or transfer property or land in the UK must register with Companies House and declare their registrable beneficial owners or managing officers.  The ROE was introd ..read more

The General Data Protection Regulation (GDPR) is a law that governs how organisations process personal data. It was introduced in Europe in May 2018 to ‘harmonise’ data privacy laws across EU member states and control how organisations, businesses, and the government use an individual’s data. Previously, many companies treated customers’ personal data as a resource they could utilise without regard for the rights of individuals. For example, some companies sold customers’ email addresses, allowed sensitive data to be seen by unauthorised people, and failed to adequately protect data against ha ..read more

Identity fraud is now one of the biggest fraud threats to the UK public, with cases soaring by nearly a quarter over the last year, recent figures show. The latest Fraudscape report by UK fraud prevention membership organisation Cifas revealed that identity fraud rose by 23% in 2022 and now accounts for almost 70% of cases filed to the National Fraud Database (NFD).  Last year saw an unprecedented 409,000 cases of fraudulent conduct recorded by the NFD, the highest number ever recorded. The Fraudscape report found that the banking sector continued to be heavily targeted. However, in 2022 ..read more