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FCA Releases New Three-Year Strategy Committing to Fight Money Laundering and Fraud

The FCA has released a new report unveiling their strategy for the next three years, from 2022 to 2025. The Strategy contains a number of commitments and plans to mitigate fraud, market abuse, money laundering, sanction evasion and terrorist financing.

Notably, the FCA committed to being more proactive with their supervision and will continue to closely scrutinise firms at the authorisation gateway so that they meet the correct standards before being allowed to proceed further. It will also continue to monitor social media for suspicious advertising which may indicate fraud, and continue its work to take down illegal advertising.

The FCA also recognised the role of cryptocurrency in money laundering in the UK and stated that it will supervise crypto-asset firm compliance with Money Laundering Regulations, and intervene where crypto-asset firms are at risk of being used as conduits for illegal activity, or where firms pose harm to consumers or market integrity.

Furthermore, the FCA revealed that it is increasingly ‘data-led’, particularly when it comes to systems and controls, and are therefore able to detect financial crime faster, disrupt and pursue firms and individuals, and remove FCA regulated fraudsters from the financial system more effectively.

They will also continue to prosecute money laundering and fraud where possible, and work closely with its partners to drive a system-wide response to stopping and preventing financial crime.

Speaking on this new commitment, regulation industry expert,  Dr. Henry Balani, Global Head of Industry & Regulatory Affairs for Encompass Corporation, comments:

“Financial crime in the UK is surging exponentially. Whilst it’s positive to see the FCA ramping up the pressure against money launderers and fraudsters, there is no doubt that more must be done to put a significant dent in the dirty money that is channelled through the UK.

“The regulatory landscape is constantly evolving, with sanctions against Russian assets being the latest issue that banks must address. Tackling financial crime requires a concerted effort from all factions in the system – from the regulator to the business, firm or individual.

“To ensure AML and KYC processes are robust, and they can respond to regulatory changes quickly and efficiently, firms should look to the sophisticated technology at their disposal as a matter of priority. RegTech will continue to play a key role the fight against financial crime and its benefits are becoming increasingly clear.”

Author

  • Polly is a journalist, content creator and general opinion holder from North Wales. She has written for a number of publications, usually hovering around the topics of fintech, tech, lifestyle and body positivity.

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