International leaders (the few who were there) reached agreement on carbon trading, development bank financing and a loss and damage fund at the COP 29 summit in Baku, Azerbaijan. In this last episode of the series, Henry Engler, senior editor in New York, joins Alex Robson, managing editor in London, to discuss the annual United Nations climate summit and some of the wins for developing countries. It is estimated that emerging market economies need at least $1 trillion per year to combat climate change.

They also discuss the re-election of Donald Trump to the White House and the implications for ESG legislation (spoiler alert: not good). Trump, a climate change denier, is expected to once again withdraw the United States from the Paris Agreement when he takes office in January.

The Compliance Clarified podcast series covers a wide range of topics that affect compliance officers at financial institutions and aims to help them navigate the often challenging regulatory environment. It considers the significant challenges of the day and offers practical ideas for emerging best practices.

See the links below for more information on the podcast and additional resources.

Links:
COP29 - Global climate financing goal for emerging economies in doubt; smaller wins achieved (paywall): http://go-ri.tr.com/X2fztB

COP29 agrees international carbon market standards: https://unfccc.int/news/cop29-agrees-international-carbon-market-standards

Fund for responding to loss and damage: https://unfccc.int/loss-and-damage-fund-joint-interim-secretariat


Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

In the ninth episode of Season 12 of Compliance Clarified, Todd Ehret, senior regulatory intelligence expert, is joined by Brett Wolf for an insightful discussion on the TD Bank unprecedented fine related to the banks numerous AML failures.

Brett Wolf, is an award winning journalist and our resident expert on AML, financial crime, and sanctions for Thomson Reuters Regulatory Intelligence.

In this episode, Brett and Todd discuss what occurred at TD Bank leading, multiple U.S. banking regulators and law enforcement agencies to cumulatively fine the bank and its subsidiaries more than $3 billion after finding that the bank engaged in systemic and willful AML failures.

Additionally, regulators and the Department of Justice have imposed very restrictive and harsh remediation demands on the bank which could impact it for years to come.

For more information on the podcast and additional resources, see the links below.

Links:
Todd Ehret LinkedIn: https://www.linkedin.com/in/todd-ehret-91827264/

Brett Wolf LinkedIn: https://www.linkedin.com/in/amlwolf/

Link to recent articles by Brett Wolf:

DOJ statement that includes links to the court documents: https://www.justice.gov/opa/pr/td-bank-pleads-guilty-bank-secrecy-act-and-money-laundering-conspiracy-violations-18b

Article about TD Bank plea:

https://www.linkedin.com/posts/amlwolf_us-action-against-td-bank-activity-7250564774063714304-xkEV?utm_source=share&utm_medium=member_ios

Article on TD AML employee who allegedly stole customer information and shared it on Telegram to fuel check fraud scheme:

https://www.linkedin.com/posts/amlwolf_td-aml-staffer-allegedly-stole-customer-data-activity-7260710359504683008-Acvs?utm_source=share&utm_medium=member_ios

FinCEN Consent Order with TD Bank

https://www.fincen.gov/sites/default/files/enforcement_action/2024-10-10/FinCEN-TD-Bank-Consent-Order-508FINAL.pdf

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

It has been more than 15 months since the UK Financial Conduct Authority (FCA) introduced the Consumer Duty for current products and over three months since its introduction for closed products. During that time, the FCA has gone from helping firms prepare for the duty's impact to scrutinising how they have implemented it.

The FCA's approach to supporting firms prior to implementation won praise from many quarters. With "dipstick" progress surveys to reviews that explored good and bad practices, the FCA issued extensive documentation to help firms prepare, understand and implement its expectations.

But as Sheldon Mills, executive director for consumers and competition at the FCA, said in a speech on the deadline date for duty implementation for closed products in July 2024, "this is not the beginning of the end…but the end of the beginning."

In that speech, Mills highlighted FCA planning, including thematic work across sectors and targeting specific sectors, products or services and a focus on pricing and value outcomes.

In this episode, Alex Robson, managing editor at Regulatory Intelligence, talks to Mike Cowan, senior regulatory intelligence expert, about the progress being made to embed the Consumer Duty in financial services firms, what recent enforcement activity means as the FCA looks to assess how firms are implementing the duty and what firms can do in future.

Links

COLUMN: TSB fine for mistreating financially distressed customers cites value of relationships over procedure: http://go-ri.tr.com/xte3nf

IMPACT ANALYSIS: Volkswagen's FCA fine in drives a lesson in customer outcomes: http://go-ri.tr.com/jLXAR7

IMPACT ANALYSIS: FCA fines PwC over not reporting London Capital & Finance suspicions: http://go-ri.tr.com/yKHVnC

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

The FCA's recent victory (http://go-ri.tr.com/Ee9lhf) in the Court of Appeal against BlueCrest Capital Management presented an interesting reversal of a tribunal decision last year (http://go-ri.tr.com/0olu4N) which sided with BlueCrest.

Whether the case now goes to a full hearing at the tribunal or an appeal to the Supreme Court on these preliminary issues remains to be seen.

Whatever the outcome, it could have serious implications for both regulated firms and the regulator.

In this week's podcast, senior regulatory intelligence expert Helen Parry discusses the case and its ramifications in conversation with Trond Vagen, senior editor, UK & Europe.

The Compliance Clarified podcast series covers a wide range of topics that affect compliance officers at financial institutions and aims to help them navigate the often challenging regulatory environment. It considers the significant challenges of the day and offers practical ideas for emerging best practices.

Links:
http://go-ri.tr.com/Ee9lhf
http://go-ri.tr.com/0olu4N
http://go-ri.tr.com/fWunnj
http://go-ri.tr.com/hGFF7r
http://go-ri.tr.com/6vyBxe

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

It can't have escaped anyone's notice that there is a presidential election in the United States on Tuesday, November 5. The polls are too tight to call and the fight for the White House between former President Donald Trump and Vice-President Kamala Harris is going right down to the wire.

In this episode of Compliance Clarified, Alexander Robson, managing editor, Regulatory Intelligence, in London chats with Henry Engler, senior editor, and Todd Ehret, senior regulatory intelligence expert in New York, about the possible outcomes, the polls and betting markets, and, specifically, what a decisive result for either candidate would mean for financial regulation. They discuss the possible impact on banking and crypto regulation and how House/Senate races beyond the presidential election might shape the outcome.

Will Fed Chair Jay Powell survive under Trump? What is the future of Fed vice chair for supervision Michael Barr under Trump given Wall Street's hostility towards his Basel endgame plans? What would a Harris administration focus on? Henry and Todd discuss these questions and more.

The Compliance Clarified podcast series covers a wide range of topics that affect compliance officers at financial institutions and aims to help them navigate the often challenging regulatory environment. It considers the significant challenges of the day and offers practical ideas for emerging best practices.

Links
Kalshi Markets: https://kalshi.com/markets

Polymarket: https://polymarket.com/event/presidential-election-winner-2024

Predictit: https://www.predictit.org/markets/detail/7456/Who-will-win-the-2024-US-presidential-election

U.S. appeals court clears Kalshi to restart elections betting (paywall): http://go-ri.tr.com/aOPu3s

INSIGHT: U.S. CFTC proposes rule to clarify ban on listed derivative bets on elections and other events (paywall): http://go-ri.tr.com/yIZWLm

How could Trump overhaul US financial regulators if he wins on Nov. 5?: https://www.reuters.com/markets/us/how-trump-could-overhaul-us-financial-regulators-if-he-wins-nov-5-2024-10-10/

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

In this episode, Helen Chan, regulatory intelligence expert and Rachel Wolcott, senior editor discuss financial crime compliance risks in luxury hospitality and the luxury goods
sectors. They run through recent developments and sanctions compliance in high-risk geographies and what that means for multinational luxury groups.

Rachel shares an overview of regulatory requirements implemented in the U.S. and anticipated reforms applicable to businesses in the luxury sector in Europe and the United Kingdom. Rachel and Helen highlight compliance takeaways for financial institutions, luxury groups and dealers of high value assets such as art and real estate.

Links:
Displays of wealth on social media draw scrutiny:
https://regintel-content.thomsonreuters.com/document/ICBBF93E0701C11EFB351F8E4C03DB09C/COMMENTARY:-Displays-of-wealth-on-social-media-draw-regulatory-scrutiny--11-09-
2024

Kim Jong Un drives Putin during state visit to North Korea (Korea Central Television)
https://www.youtube.com/watch?v=DNHHtFVibK8

Factsheet: FinCEN issues final rule to increase transparency in residential real estate
transfers: https://www.fincen.gov/sites/default/files/shared/RREFactSheet.pdf

Lafarge pleads guilty to conspiring to provide material support for terrorist organizations: https://www.justice.gov/opa/pr/lafarge-pleads-guilty-conspiring-provide-material-support-
foreign-terrorist-organizations

Contact us:
[email protected]
[email protected]

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

In the fourth episode of Season 12 of Compliance Clarified, Todd Ehret, senior regulatory intelligence expert, is joined by Henry Engler for an insightful discussion on the Basel III endgame.

Basel III was originally developed in response to the financial crisis of 2008- 2009. The Basel Committee for Banking Supervision finalization of Basel III, known as Basel III endgame, introduces extensive changes, especially in the calculation of risk-weighted assets (RWA). These changes will significantly impact business models, compelling banks to reconsider their capital allocation strategies.

On July 27th, 2023, the US Federal Reserve and FDIC published their Notice for Proposed rulemaking for Basel III endgame. After months of criticism and discussion, on September 10, the Federal Reserve announced a re-proposal of the much discussed and awaited Basel III Endgame.

Henry Engler is a Senior Editor for North America for Thomson Reuters Regulatory Intelligence based in New York. Henry joined Thomson Reuters after a decade in the financial industry in which he has served in roles as an executive or managing consultant overseeing compliance-related and other projects. Henry is also a trained economist and has served as a financial journalist and business strategy executive at Reuters. Henry has edited books on the European Monetary Union and the future of banking and is also the author of "Remaking Culture on Wall Street: A Behavioral Science Approach for Building Trust from the Bottom Up."

For more information on the podcast and additional resources, see the links below.

Links:
Todd Ehret LinkedIn: https://www.linkedin.com/in/todd-ehret-91827264/

Henry Engler LinkedIn: https://www.linkedin.com/in/henry-engler-29133/

Link to recent article by Henry Engler:
U.S. Basel Endgame enters uncertain phase as regulators jostle behind the scenes: https://www.linkedin.com/feed/update/urn:li:activity:7246539010406252546/

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

In the third episode of Season 12 of Compliance Clarified, Todd Ehret, senior regulatory intelligence expert, is joined by Brett Wolf for an insightful discussion on his takeaways from the recent ACAMS conference in Las Vegas.

Brett Wolf is an award-winning journalist and our resident expert on AML, financial crime, and sanctions for Thomson Reuters Regulatory Intelligence.

Brett shares his insight on various discussions at ACAMS and FinCEN’s recently proposed rule that would amend financial institutions’ AML program requirements. He also offered his take on the latest developments with AI and the industry efforts surrounding the nascent technology and the Corporate Transparency Act and beneficial ownership reporting as FinCEN continues its push to implement the statute.

For more information on the podcast and additional resources, see the links below.

Links:

Todd Ehret LinkedIn: www.linkedin.com/in/todd-ehret-91827264/

Brett Wolf LinkedIn: www.linkedin.com/in/amlwolf/

Link to recent article by Brett Wolf
U.S. FinCEN reviews comments on proposed changes to AML program rule, bank regulators still accepting feedback: www.linkedin.com/posts/amlwolf_fincen-rulemaking-activity-7245212104629051392-Nu36?utm_source=share&utm_medium=member_desktop

Thomson Reuters Regulatory Intelligence content https://regintel-content.thomsonreuters.com/

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

In this episode Lindsey Rogerson and Rachel Wolcott, senior editors in London discuss the growing risk – both reputational and regulatory for financial firms invested or lending to methane-intensive corporates.

Methane has 28 times the warming effect of CO2. The two main sources of man-made methane are agriculture and fossil fuels, and increasingly lawmakers are pushing responsibility for reigning in emissions onto the financial services firms.

Lindsey and Rachel discuss the various regulations that are in place or in train to ensure banks and investment firms are collecting data on the methane intensity of their loan books and portfolios. These include the Sustainable Financial Disclosure Regulation (SFDR), the Corporate Sustainability Reporting Directive (CSRD), the EU Methane Regulation and the EU Deforestation Regulation.

They go on to discuss the growing public interest in who is funding agribusiness and the fossil fuel industry. And how the satellites coming online to monitor methane leaks will increase the scrutiny on banks.

And Rachel can't resist a cow joke or two.

Links:

Planet Tracker Hot Money report: https://planet-tracker.org/wp-content/uploads/2023/01/Hot-Money.pdf
Banking on Climate Chaos report from Rainforest Alliance: https://www.bankingonclimatechaos.org/wp-content/uploads/2024/05/BOCC_2024_vF1.pdf
Environmental Defense Fund Missing Methane: A European Perspective Report: https://business.edf.org/insights/missing-methane-a-european-perspective/
Article on satellite monitoring: https://www.thomsonreuters.com/en-us/posts/esg/deforestation-carbon-reduction-technology/
The GreenShed project: https://www.sruc.ac.uk/connect/about-sruc/major-projects/greenshed/
Article on academic research on bark absorbing methane: https://theconversation.com/weve-discovered-the-worlds-trees-absorb-methane-so-forests-are-even-more-important-in-the-climate-fight-than-we-thought-235233
Article on feeding seaweed to cows: https://caes.ucdavis.edu/news/feeding-cattle-seaweed-reduces-their-greenhouse-gas-emissions-82-percent#:~:text=New%20Long-Term%20Study%20Could,the%20University%20of%20California%2C%20Davis.
EU deforestation regulation (supply chain); https://environment.ec.europa.eu/topics/forests/deforestation/regulation-deforestation-free-products_en
UK deforestation rules (supply chain): https://www.legislation.gov.uk/ukpga/2021/30/schedule/17

Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

In this episode, Lindsey Rogerson and Rachel Wolcott, senior editors for Regulatory Intelligence in EMEA discuss the UK Financial Conduct Authority’s (FCA) approach to Freedom of Information Act (FOIA) compliance.
In the UK, most public bodies are subject to FOIA. That means members of the public can request information held by public authorities or by persons providing services to them. That includes the FCA, the Prudential Regulation Authority and the Bank of England.

Lindsey and Rachel discuss the importance of using FOIA in their work to uncover information that helps readers and listeners better understand how the regulators work. They talk through several examples of information they’ve been able to request, including about whistleblowing, enforcement statistics, as well as bullying and harassment allegations made by FCA employees.

Recently, however, many of their FOIA requests have been met with resistance from the regulator. Lindsey and Rachel talk about how they appealed the FCA’s use of FOIA exemptions —and won. The process brought valuable insights into how the regulator manages FOIA compliance.

LINKS
FCA response to FOI on guidance for supervisors investigation allegations made by whistleblowers after ICO intervention June 2024: https://www.whatdotheyknow.com/request/protocol_for_supervisors_when_in/response/2684994/attach/4/FOI10712%20Amended%20Response%2020240619.pdf?cookie_passthrough=1

Redacted FCA document: Supervision: Whistleblowing ‘How to Guide’ for SPC & Authorisation Divisions: https://www.whatdotheyknow.com/request/protocol_for_supervisors_when_in/response/2684994/attach/5/Annex%20A.pdf?cookie_passthrough=1

Article: FCA report shows "host" ACD compliance has not improved in a decade, s 166s imposed: https://word-edit.officeapps.live.com/we/FCA%20report%20shows%20%22host%22%20ACD%20compliance%20has%20not%20improved%20in%20a%20decade,%20s%20166s%20imposed

Article on: UK FCA is still assessing more than 1,100 whistleblower reports from 2023/24: https://nam02.safelinks.protection.outlook.com/?url=http%3A%2F%2Fgo-ri.tr.com%2FO3tB1r&data=05%7C02%7Crachel.wolcott%40thomsonreuters.com%7Cba01669a1154474d690a08dcd2715851%7C62ccb8646a1a4b5d8e1c397dec1a8258%7C0%7C0%7C638616631473549097%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C0%7C%7C%7C&sdata=DODZq3z11tZ%2FDZsQvMvYSJWDHOs4gJi7eVZRLslaqGA%3D&reserved=0

H2O decision notice: https://www.fca.org.uk/publication/final-notices/h2o-am-llp-2024.pdf

FCA warning notice on Woodford Investment Management Ltd and Neil Woodford: https://www.fca.org.uk/publication/warning-notices/warning-notice-statement-24-3.pdf

First Tier Tribunal decision in Paul Carlier v ICO: https://www.bailii.org/uk/cases/UKFTT/GRC/2024/257.html

Article on FOIA request about MiFID II recordkeeping investigations: https://www.linkedin.com/posts/rachelwolcott_mifid-enforcement-action-activity-7199352605670555649-BLwt/?utm_source=share&utm_medium=member_desktop

Article: FCA to merge FOIA, personal data disclosure unit into comms team: https://www.linkedin.com/posts/rachelwolcott_fca-to-merge-idt-fully-with-communications-activity-7163815206140239873-HFex/?utm_source=share&utm_medium=member_desktop

UK FCA's FoIA request reputational risk assessments, guidelines for journalists' requests are inappropriate –expert (paywall): http://go-ri.tr.com/xqNUHX

Meta FOIAs
FOI6522, FOI9427, FOI9980 (scroll to the bottom for links. For two of them you may need to request access from the FCA)
FCA’s response to Lindsey and Rachel’s questions:
Is the FCA's approach to FOIA and DPA in line with its stated values of acting with integrity and delivering in the public interest? "Yes"

Does the FCA still circulate FOI responses to large number of staff in the CEO's office and the COO for comments and sign off? "As we mentioned in our last response to you in March, our approach is in line with ICO guidance and the law."

What are the latest IDT performance statistics? "Over the last 12 months from September 2023 to August 2024 (inclusive), we responded to 92% of FOIA requests and 98% of DSARs within the statutory deadline."

Has the ICO asked the FCA to perform any remedial work on IDT? Has ICO advised/queried the FCA about safeguards for FOIA and DPA in the new combined IDT/press office arrangements? "No. When we answered your questions in March, we explained that it had been our intention that the information disclosure team would move to a different department within the communications directorate as part of a planned restructure later this year. That move has now happened."

Has the FCA stopped internal circulation of lists of new FOIA requests with names of requestors? If not why not?
"We continue to circulate the details of new requests, which generally include the names of the requesters, to a limited number of internal stakeholders. We are satisfied that our internal processes are appropriate and lawful, including that our processes are compliant with FOIA and data protection legislation."

What further steps has the FCA taken to train IDT/comms staff about using FOIA exemptions?
"All IDT staff and internal reviewers have received formal training on the application of the FOI Act and many members of the team are qualified FOIA practitioners. In addition, IDT works closely with our legal division, which provides expert guidance in the interpretation of the most complex aspects of the Act."

Has the FCA reviewed its approach to labelling FOIA requests as vexatious following the First-Tier Tribunal case Paul Carlier v Information Commissioner and the FCA? If yes, how? "The FCA continues to consider each request on a case by case basis, in line with the requirements of relevant legislation, ICO guidance and case law. In this case, the ICO agreed with our view the requests were vexatious. The Tribunal, however, decided 'by a narrow margin' they were not, a conclusion it reached 'with some hesitation.' We have therefore been happy to reconsider the requests."

From the evidence we have reviewed the FCA’s approach to FOIAs and DPAs seemed to be top-down with many senior executives signing off requests and even correcting grammar errors. We are also aware from our own FOIs that there is often months-long delays in responding to requests and appeals. Given this, what is the FCA doing to ensure a more efficient process in line with the legislation?

"We have improved our performance on the statutory deadlines for FOIAs and DSARs over the last year. We recognise that we need to do more to improve our performance in processing FOIA Internal Reviews and DSAR complaints. We are currently considering how the existing process can be streamlined to improve its efficiency. Our internal processes are focused on ensuring a clear and quality response, not preventing disclosure which is determined by the law."

FOI6522: https://www.whatdotheyknow.com/request/foi6522_request_for_further_info#incoming-2714347
FOI9427: https://www.whatdotheyknow.com/request/foi9427_request_for_information#incoming-2713882
FOI9980: https://www.whatdotheyknow.com/request/foi_9980_request_for_information#incoming-2711477


Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

In this last episode of series 11, Helen Parry, senior regulatory expert and Rachel Wolcott, senior editor, discuss the gambling scandal that enveloped the UK general election and cross over themes for compliance.

Cheating is an offence under section 42 of the Gambling Act and betting firms are supposed to do enhanced due diligence on politically exposed persons (PEPs).

Helen explains how recent enforcement actions against UK gambling firms around their failure to conduct enhanced due diligence on PEPs led to better controls that meant UK politicians using inside information to place bets on the general election date were detected quickly.

Helen and Rachel discuss the UK Financial Conduct Authority's guidance for risk managing PEPs as well as other inside information examples around political polling and other sensitive information.

Links

COLUMN: Stop the bets – the law and regulation of political gambling and politically exposed persons (pay wall - go-ri.tr.com/Cdfrka)

(FG 17/6 - https://www.fca.org.uk/publication/finalised-guidance/fg17-06.pdf) UK FCA guidance on the treatment of politically exposed persons for anti-money laundering purposes

William Hill Group businesses to pay record £19.2m for failures (UK gambling commission press release - https://www.gamblingcommission.gov.uk/news/article/william-hill-group-businesses-to-pay-record-gbp19-2m-for-failures)

Entain to pay £17 million for regulatory failures (UK gambling commission press release - https://www.gamblingcommission.gov.uk/news/article/entain-to-pay-gbp17-million-for-regulatory-failures#:~:text=A%20gambling%20business%20is%20to,.uk%20and%20foxybingo.com.)

Contact us

[email protected]
[email protected]