Adam Jones

In a new step to tackle financial crime, we’ve committed to 9 priorities with the National Crime Agency (NCA) for the UK’s regulated sector. This will help firms focus on the most serious threats, including: • Cash-based money laundering. • The exploitation of money mules. • Fraud linked to high-risk jurisdictions. Read more: https://lnkd.in/ey2dm--j #FinancialCrime #FinancialServices #FinancialRegulation

543

5 Comments

🔍 HM Treasury's OFSI has published a Cryptoassets Threat Assessment guide. The UK’s Office of Financial Sanctions Implementation (OFSI) released a critical report highlighting threats to financial sanctions compliance in the cryptoasset sector. Here are the key points: 1️⃣ **Sanctions Evasion Risks**: Since 2022, designated persons (DPs), particularly Russian and DPRK-linked actors, have increasingly used cryptoassets to bypass UK sanctions, exploiting blockchain’s pseudonymous nature. 2️⃣ **Russian Exposure**: UK crypto firms face significant risks from direct/indirect exposure to the Russian exchange Garantex (designated in 2023) and its successor, Grinex, which facilitates illicit transactions, including via Ruble-backed stablecoin A7AS5. 3️⃣ **DPRK Cyber Threats**: North Korean hackers, including groups like Lazarus, pose a severe threat, with high-profile thefts (e.g., $1.5B from Bybit in 2025) and sophisticated money laundering via mixers, DEXs, and no-KYC platforms. 4️⃣ **Iranian Activity**: Iranian crypto firms, like Nobitex, with suspected links to designated entities (e.g., IRGC), are facilitating sanctions evasion, often using AI-generated IDs to bypass KYC checks. 5️⃣ **Compliance Red Flags**: Indicators like large transactions post-sanctions, use of privacy coins, mixers, DEXs, or transactions from sanctioned jurisdictions signal potential evasion, requiring enhanced due diligence. 6️⃣ **Regulatory Oversight**: Crypto firms must register with the FCA, comply with the Travel Rule, and report suspected breaches to OFSI and SARs to the NCA, referencing “OFSI Cryptoassets Threat Assessment - 0725.” 7️⃣ **Call to Action**: UK cryptoasset firms are urged to strengthen compliance through robust due diligence, monitor for red flags, and review OFSI’s guidance and resources to mitigate risks. 💡 **Why It Matters**: With 7% of OFSI’s suspected breach reports since 2022 involving crypto firms, this report underscores the need for vigilance to protect the integrity of UK financial sanctions. 📌 Read the full report for actionable insights: #CryptoCompliance #FinancialSanctions #OFSI #BlockchainSecurity

37

2 Comments

🎓 Introducing our new highly interactive 'Failure to Prevent Fraud' (FTPF) e-learning module, designed to help organisations embed fraud awareness and foster a culture of transparency and ethical behaviour. What can you expect? • A clear breakdown of the key components that make up the FTPF offence • Sector-agnostic ‘general awareness’ training • Interactive features: virtual trainer, multimedia, case studies and knowledge checks • SCORM-compatible for seamless LMS integration • 20 minutes to complete (excluding assessment) 🔗 Ensure your organisation is up to date and learn more about the training module: https://okt.to/7icgFx #FraudPrevention #FTPF #ECCTA

51

📢 Big news for digital identities - The UK Government has announced new guidance that will formally recognise certified digital identities as valid tools for complying with the UK’s Money Laundering Regulations (MLRs). This long-awaited move brings much-needed clarity for regulated firms using digital identities for AML and CDD. Here are the key updates ⤵️

27

2 Comments

Introducing RegWatch Quarterly 🚨    We’re thrilled to launch RegWatch Quarterly, an update across EU-level, key EU market, and the UK to keep you ahead of the curve in an ever-evolving FS regulatory landscape.    With comprehensive content, you can easily navigate to the jurisdictions and the topics that matter most to your business, including: EU and national policy; EU and national regulator priorities; CRD6; ESG & Sustainability; FiDA; PRIIPS; MiFID/R; UCITS; EMIR; Artificial Intelligence; Crypto; MiCA; and more.    🔗 Read the first edition here: https://lnkd.in/e7yBMskY Stay informed. Stay ahead.   #FinancialRegulation #SimmonsAndSimmons

32

1 Comment

Wealth and asset managers are under pressure to modernise AML systems and match the pace of fintechs without compromising compliance. Our latest eBook outlines 5 key AI AML buying considerations, including: 🔹 Where you are on the AI curve 🔹 Why not all false positives are bad 🔹 The importance of extreme usability 🔹 Explainability and regulatory readiness 🔹 How to future-proof with ‘human-in-the-loop' design If you're evaluating AI-driven AML solutions, this is your must-read guide. 📘 Download now, link in the comments. #AI #AML #Financialcrime

23

1 Comment

In today’s edition of the Financial Times' Banking Risk and Regulation Edition, I'm commenting on the European Banking Authority (EBA)’s critical take on how RegTech is currently being deployed across the financial sector. While RegTech offers powerful capabilities, it’s not a shortcut. Without a clear understanding of financial crime risks and how controls actually work in practice, the technology can easily be misapplied or misunderstood. The result is not just inefficiency, but potential regulatory and operational exposure. Important discussion on an area where expectations, regulation, and technology are moving fast, but not always in sync. You can read the full piece here (behind paywall): https://lnkd.in/dijKp5Ar #FinancialCrime #RegTech #Compliance #RiskManagement #EBA #Acuminor

29

2 Comments

One of the key points in CryptoUK’s response to the FCA's 'Stablecoin Issuance and Cryptoasset Custody' Consultation is the critical role of clear tax policies in shaping a stable and supportive environment for crypto and digital assets... You can read our full response here 👉 https://buff.ly/TvrcROS

19

1 Comment

Did you know? Last month, the BMA issued a consolidated Guidance Note to make the Digital Asset Licensing process clearer. It explains best practices in governance, risk, AML/ATF and operational resilience. Read more on our website: https://lnkd.in/enUdmGdp #Bermuda #Fintech # Regulation # DigitalAssets #Innovation

24