FCA Warns Retail Banks over Failings in AML Systems - BrokersView

FCA Warns Retail Banks over Failings in AML Systems

Jul 14, 2021

b3c202a7387e549b2e7140d50287f7a.jpegThe UK Financial Conduct Authority (FCA) has issued a warning against the retail banks operating in the country about their failings in financial crimes control.

Reportedly, the FCA wrote a letter to industry chiefs following an assessment of retail banks' financial crime controlling system, expressing that the UK authority had concerns over areas of governance and oversight, risk assessments, due diligence, transaction monitoring, and suspicious activity reporting.

"We are disappointed to continue to identify, across some firms, several common weaknesses," the letter put it.

The FCA orders retail banks to fulfill a "gap analysis" by September against the common weaknesses identified and then take "prompt and reasonable" steps to close these. Otherwise, the regulator would take enforcement measures.
"Retail banking is a high-risk sector for illicit financial crime activity, particularly in today's climate, where the increase in both online banking and remote working has made money laundering even harder to detect," said Wayne Johnson, CEO, Encompass Corporation

"The banks, therefore, must work proactively and collaboratively with the FCA and other regulatory bodies to ensure they are onboarding customers, reporting information, and complying accurately with current existing regulations and industry recommendations.