What’s on this replace?
Fraud & AML: New failure to forestall fraud offence now in pressure; UK, EU, US and Australia all tightening monetary crime guidelines.
Knowledge & Cyber: UK DUAA and EU Knowledge Act reshape knowledge regulation; surge in cyberattacks and AI-driven ransomware.
Human Rights & ESG: Push for UK human rights due diligence; EU ESG agenda fading; Xinjiang imports spotlight fashionable slavery dangers.
Office & Variety: Gender pay hole persists, rising psychological well being absences, and regulators cracking down on harassment and discrimination.
Enforcement & Governance: Regulators from the SFO to the Financial institution of England flexing powers with huge fines and new compliance expectations.
UK regulatory replace
Failure to forestall fraud got here into pressure on the primary of this month, however a new VinciWorks ballot reveals a staggering 4 in 10 firms haven’t but educated workers in regards to the new offence.
In the meantime the Critical Fraud Workplace (SFO) believes Unexplained Wealth Orders (UWO) could possibly be the key to fraud convictions, because it secures its first profitable UWO in 2025 and clawed again over £1m from a convicted fraudster.
One other new compliance rule is on the horizon. Necessary human rights due diligence could possibly be coming to the UK quickly after a parliamentary committee really helpful new laws.
The Financial institution of England has exercised its little used regulatory powers to high-quality a agency practically £12m for failing to put money into good governance and robust compliance programs.
Cyber safety incidents are raging throughout the nation. Hackers stole knowledge from 8,000 youngsters at a nursery. In the meantime Jaguar Land Rover was additionally introduced down by a cyber assault. There isn’t a enterprise that may get away with lax cyber safety practices.
Whereas the Knowledge (Use and Entry) Act is reshaping knowledge safety, enforcement can nonetheless chunk. A care residence director was prosecuted by the ICO and convicted by a court docket for failing to answer a topic entry request from a resident’s daughter.
Discrimination claims might be complicated, however some are straight ahead. A pregnant girl who was dismissed by her employer received her £20,000 discrimination declare.
A large rise in sick depart amongst employees is being reported, with psychological well being circumstances displaying up in over 40% of circumstances. Companies ought to take into consideration higher wellbeing methods.
The EHRC – Britain’s variety regulator has used one in every of its lesser recognized powers to pressure grocery store chain Lidl right into a legally binding settlement to enhance sexual harassment procedures following an employment tribunal.
The Isle of Man is going through a siege by drug smugglers, cash launderers and legal gangs. In response, the Manx authorities is getting ready to increase its definitions of economic crime to incorporate bribery, corruption and sanctions breaches.
EU regulatory replace
The EU’s Knowledge Act has come into pressure as of 12 September. What does this imply for GDPR and what EU firms do the brand new guidelines apply to?
Spain is searching for to sort out endemic corruption with a brand new anti-bribery regulation. The embattled Spanish authorities, itself a goal of bribery probes, is proposing stricter penalties and enforcement.
An fascinating GDPR case from Denmark which went all the way in which to the court docket in Brussels has expanded company legal responsibility for firms utilizing legacy or outdated IT programs.
ESG – as soon as the poster youngster of the EU’s ‘Inexperienced New Deal’ is dying a fast dying. It’s all however gone from the European coverage agenda, and even BlackRock has turned its again on sustainability necessities.
New UBO guidelines are coming into pressure throughout the bloc. By July 2027, corporations can have new necessities to determine and confirm UBOs underneath the AML single rulebook.
US regulatory replace
Important regulatory change is perhaps afoot with the Financial institution Secrecy Act and wider US AML laws. Treasury officers outlined a attainable new method together with modifications to penalties… and incentives for compliance.
The authorized market
Sweeping reforms to the UK’s Cash Laundering Rules have been introduced by the federal government, reshaping AML compliance for each regulated entity and attributable to come into pressure in 2026.
These modifications additionally embrace guidelines round pooled consumer accounts. Whereas these have lengthy been seen as low danger, the Treasury needs to decouple this from simplified due diligence.
A barrister has been named by HMRC as a promoter of a tax avoidance scheme, amplifying the federal government crackdown on the authorized sector’s position in tax avoidance.
The primary UK gender pay hole evaluation from over 100 of the UK’s greatest corporations has proven males earn 26% greater than girls. With new pay hole guidelines on the horizon, how are regulation corporations tackling this difficulty?
In Scotland, failure to forestall fraud takes on a unique flavour as Deferred Prosecution Agreements (DPAs) are not out there underneath Scots regulation. This might prolong the danger for Scottish corporations being caught up in fraud prosecutions.
Around the globe
In Australia, Tranche 2 reforms on AML are attributable to begin coming into pressure from March 2026, with a spread of latest cash laundering obligations on everybody from legal professionals to crypto. Proliferation financing can also be a part of the regime that corporations should take care of.
Brazil is on the brink of an adequacy choice by the EU, permitting for free-flowing knowledge between South America and the European Union.
Virtually £1 billion of slave-labour linked items has been imported from the Xinjiang area of China within the UK. This highlights the very actual fashionable slavery danger of doing enterprise in sure areas.
An investigation has revealed Chinese language producers are sending drone elements to Russia in violation of worldwide sanctions. It raises the danger of western producers probably doing enterprise with sanctioned entities or excessive danger firms.
Do you know?
Ransomware has gone AI. The primary ever absolutely automated, AI-powered ransomware has been found that makes use of LLMs to focus on firms all by itself. Scary stuff.
New guides
Constructing belief in Crypto: How the FCA’s Session might reshape the UK market
Unexplained Wealth Orders (UWO) compliance guidelines
Information to the Knowledge (Use and Entry) Act 2025 – What you want to know
Knowledge (Use and Entry) Act 2025 implementation factsheet
The 2025 modifications to the Cash Laundering Rules 2017
Failure to forestall fraud – A sensible information to compliance
Psychological well being and psychological security: A information to wellbeing and compliance
Bribery & corruption danger evaluation refresh guidelines
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