Our monthly round up of news items relevant to AML regulated businesses.
Cyber Security
A cautionary tale about TikTok and other social media apps for that matter. London based journalist Cristina Criddle has revealed that the company contacted her last year to disclose that two of its employees had accessed her user data unlawfully.
TikTok’s internal audit department had viewed her data to try and establish who she was meeting with as part of her job.
Remember that the majority of social media accounts will harvest data about you (and potentially your company). The sorts of information can include;
Like most social-media networks, TikTok collects quite a lot of information about its account holders, including:
Your location(s), likes, device data and other activity outside of the platform itself.
Due Diligence
The UK is set to introduce a new criminal offence of failure to prevent fraud. This could have far reaching implications, including the need for due diligence requirements as under the new law an organisation will be liable where a specified fraud offence is committed by an employee or agent, for the organisation’s benefit, and the organisation did not have reasonable fraud prevention procedures in place.
It does not need to be demonstrated that company management ordered or knew about the fraud.
Regulatory
Law Enforcement Agencies in the UK working with the Financial Conduct Authority (FCA) have used their powers to inspect several sites suspected of hosting illegally operated crypto ATM’s.
Crypto ATMs allow people to buy or convert money into crypto assets. There are no crypto ATM operators currently registered with the FCA.
Due to concerns over money laundering the FCA has previously warned operators of crypto ATMs in the UK to shut their machines down or face enforcement action.
