Category: Financial Crime Controls

The Global Anti-Financial Crime System is Broken

Financial Crime, Financial Crime Controls
For over 35 years, global standards have required countries around the world to put in place laws, regulations and structures to prevent and detect money laundering (and, more recently, terrorist financing and proliferation financing). The internationals standard-setter, the Financial Action Task Force (FATF) provides a framework of measures for countries to implement; every ten years or so, countries are reviewed for both their technical compliance with the recommendations and the effectiveness of the measures that they have put in place. Since the establishment of the FATF in 1989, the global financial system has become infinitely more complex and fragmented; and…

UK Financial Conduct Authority Acts to Improve Financial Crime Issues at Challenger Banks

FCA, Financial Crime Controls
The U.K. Financial Conduct Authority has published the findings of its multi-firm review into financial crime controls at challenger banks. The FCA undertook the review in 2021 in response to the 2020 National Risk Assessment of money laundering and terrorist financing, which highlighted the risk that quick onboarding processes advertised by challenger banks could appeal to criminals. The FCA’s review revealed that technology is being used well to identify and verify customers quickly and that there are not many differences between the financial crime risks facing challenger banks and those posed to traditional retail banks. However, there are several areas…