General

CEO of Deutsche Borse resigns over accusations of insider dealing

The Chief Executive of the Deutsche Borse, Carsten Kengeter, has resigned following allegations he had been involved in insider dealing prior to unveiling the German stock exchange's proposed merger with the London Stock Exchange. Kengeter has agreed to leave to 'avoid distractions' caused by the accusations, following the German court's refusal to agree to a personal penalty of €500,000 and a €10.5m penalty for the Borse.

The allegations relate to Kengeter's purchase of €4.5m worth of Deutsche Borse shares, just two months before the merger plans with London's stock exchange were announced, subsequently sending the share prices soaring. The Borse has accepted Kengeter's resignation but supported the defence of its CEO, insisting the shares were part of a bonus plan.

The Guardian, 1 November 2017

Money Laundering

New UK Guidelines on preventing illicit financing

The UK government has released its second 'National Risk Assessment of Money Laundering and Terrorist Financing'.  The Report identifies the key national money laundering and terrorist financing risks facing the country.  The Report states that high-end money laundering and cash-based money laundering remain the greatest areas of money laundering risk to the United Kingdom.  It goes on to recognise that professional services remain a significant risk of money laundering due to criminals seeking the assistance of such services to disguise the source and origin of funds. 

The Report's publication coincides with the Financial Action Task Force (FATF) evaluation which is due to take place within the next 12 months, the first such FATF evaluation of the UK since 2012. 

Gov.uk, 26 October 2017

Fraud

'More than a fifth' of public fail to report investment frauds

A survey carried out by the FCA has revealed that 'more than a fifth' fail to report when approached by investment fraudsters or scammers, with the number falling below 63% amongst over-55s. The FCA is urging more people to speak up if they are contacted by fraudsters, to help inform the regulator on what legal steps to take.

The YouGov survey focused on over-55s with a household income of at least £30,000 as the most likely target for unsolicited approaches from fraudsters. 22% of those surveyed admitted to not reporting suspected scams, with the most common reason being uncertainty over who to report the approaches to.