Key elements for effective Transaction Monitoring

Key elements to effective Transaction Monitoring

In today’s evolving financial landscape, safeguarding your business against financial crimes like money laundering, fraud, and terrorist financing is paramount. As a result of this, the importance of transaction monitoring cannot be overstated. It ensures financial transactions adhere to regulatory standards and remain free from illicit activities. Transaction monitoring involves the systematic and continuous examination […]

Strengthening Sanctions Controls: FCA’s 5 Key Areas for Improvement

Strengthening Sanctions Controls: FCA's 5 Key Areas for Improvement

In an increasingly complex financial landscape, implementing effective sanctions controls are essential in the fight against financial crime. The Financial Conduct Authority (FCA) recently conducted a comprehensive assessment of over 90 firms spanning various sectors, from retail banking to emoney and payments, focusing on their sanctions controls. The objective of the survey was to ensure […]

FCA Launches Review of Treatment of Politically Exposed Persons

FCA Launches Review of Treatment of Politically Exposed Persons

The Financial Conduct Authority (FCA) has initiated a comprehensive review of how financial services firms treat Politically Exposed Persons (PEPs) based in the UK. Although the FCA cannot alter the legal framework governing PEPs, this review will closely scrutinise how firms: The review is slated to conclude by the end of June 2024, and the […]

Tackling financial crime in the payments sector and new SAR portal

Financial Crime in the Payments Sector and New SAR Portal

On 18th July 2023, the Financial Conduct Authority (FCA) hosted an informative webinar in collaboration with the UK FIU, focusing on tackling financial crime within the payment and e-money sector. As part of their commitment to reducing and preventing financial crime, the FCA discussed recurring thematic issues and emphasised the need for better reporting of […]

Banks Progressing in the Fight Against Financial Crime

Banks Progressing in the Fight Against Financial Crime

In its latest report, the European Banking Authority (EBA) reveals the findings from its 2022 review of competent authorities’ efforts to combat money laundering and terrorist financing (ML/TF) risks in the banking sector. The report highlights the progress made by supervisors in their fight against financial crime and provides recommendations to further strengthen their approach. […]

Have Your Say in AML/CTF Supervision Reform

Have Your Say in AML/CTF Supervision Reform

The fight against money laundering and terrorism financing is a top priority for the UK, and to strengthen the country’s anti-money laundering and counter-terrorism financing (AML/CTF) supervisory system, HM Treasury has initiated an open consultation on potential reforms. This consultation is a crucial opportunity for firms to contribute their views and shape the future of […]

Inadequate money laundering and terrorist financing controls found in EU payment institutions

money laundering and terrorist financing controls

The European Banking Authority (EBA) recently released its comprehensive report on the risks associated with money laundering and terrorist financing (ML/TF) in EU payment institutions. The report sheds light on the inadequate assessment and management of ML/TF risks by both institutions and their supervisors. In this update we will provide an overview of the EBA […]

Good Practice: Customer Risk Assessments Frameworks

Good Practice: Customer Risk Assessments Frameworks

Customer Risk Assessments (CRAs) are fundamental to running a compliant business, preventing financial crime and a priority of the Financial Conduct Authority (FCA). They help financial institutions identify, assess and mitigate the risks associated with their customers and ensure that they have appropriate anti-money laundering/counter terrorism financing (AML/CTF) measures in place. Most firms today use models based […]

Over 50% of cryptocurrency Suspicious Activity Reports relate to fraud

Cryptocurrency SARs

According to the UK Financial Intelligence Unit (UKFIU), in suspicious activity reported by cryptocurrency exchanges, reports relating to fraud accounted for just over 50% of their Suspicious Activity Reports (SARs). Approximately one quarter of these related to investment fraud, where the victim had been scammed into setting up a cryptocurrency wallet, with the promise of […]

Fighting Financial Crime Risks Through Machine Learning

Machine Learning

The global banking industry is grappling with an ever-growing threat of financial crimes, particularly money laundering and sanctions violations. The costs and risks associated with these criminal activities are staggering, with an estimated loss of $1.6 trillion, equivalent to 2.7% of the global GDP, due to money laundering alone. Additionally, the rise in sanctioned entities […]