OFSI’s Thematic Threat Assessment on Cryptoassets
The Office of Financial Sanctions Implementation (OFSI) has published a comprehensive thematic threat assessment on cryptoassets, providing an extensive list of red flags to help businesses identify unusual or suspicious activity. Some key red flags include:
– Large/unusual transactions following sanctions announcements
– Exposure to counterparties with known associations to Designated Persons (DPs)
– Sudden changes in transaction patterns or attempts to circumvent compliance measures
– Use of privacy coins, mixing/tumbling services, or P2P exchanges
– Rapid movement of assets through multiple addresses
– Transactions from jurisdictions not aligned with UK sanctions
– VPN usage to mask the true geographic location of a counterparty
– Refusal to undergo standard compliance checks
These and other red flags are designed to support businesses in identifying potentially suspicious activity in the crypto sector.
For more details, read the full assessment here:
SARs – DAML Threshold Increase to £3,000
From 31 July 2025, the Proceeds of Crime (Money Laundering) (Threshold Amount) (Amendment) Order 2025 will come into force, increasing the DAML threshold from £1,000 to £3,000.
This change means that if the value of suspected criminal property is below £3,000, firms can proceed with transactions or return money to clients to end a business relationship without submitting a DAML SAR. This adjustment is intended to reduce the burden on firms by focusing resources on higher-value, more impactful economic crimes.
However, firms are still required to submit an information SAR if they have knowledge or suspicion of money laundering, even under the POCA ss. 327–329.
For more details, read the full legislation here:
https://www.legislation.gov.uk/ukdsi/2025/9780348271867/pdfs/ukdsi_9780348271867_en.pdf
FCA Sets Faster Targets for Authorisations
The FCA has introduced new KPIs and targets to speed up the authorisation process while maintaining high standards for entry into regulated financial services.
Key updates include:
– Statutory: New firm authorisations and variations to be completed in 4 months (down from 6) for complete applications and 10 months (down from 12) for incomplete applications.
– Voluntary: For closely aligned variations of permission, the target is now 3 months for complete applications and 6 months for incomplete.
– Voluntary: Payments and e-money firm authorisations to be completed in 3 months (unchanged) for complete applications and 10 months (down from 12) for incomplete applications.
– Voluntary/Statutory: Senior Manager Regime applications to be completed within 35 days for at least half of applications, with a statutory deadline of 2 months (down from 3).
The FCA said: “The targets also give firms some time to address feedback and remedy issues, reducing, but not eliminating, the risk of increased refusals.”
For more details, read the full story here:
https://www.fca.org.uk/news/news-stories/fca-sets-faster-targets-authorisations
Crypto ATM Seizures and Arrest for Running Illegal Cryptoasset Exchanges
Two individuals have been arrested on suspicion of money laundering and running an illegal cryptoasset exchange. The FCA seized seven crypto ATMs during searches of four premises across southwest London.
This operation highlights the ongoing efforts to tackle illegal crypto activities and reinforce compliance within the sector.
For more details, read the story here:
FATF’s New Report on Terrorist Financing Risks
The FATF has released a new report highlighting concerns in the FinTech sector, particularly in the use of digital methods such as electronic wallets, prepaid mobile cards, and virtual assets for terrorist financing.
The report urges more attention and action on these emerging risks within the financial industry.
For more details, read the full report here:
