Home Altcoins News UK Financial Watchdog: Tackling Financial Crime Across the Board

UK Financial Watchdog: Tackling Financial Crime Across the Board

UK financial watchdog

According to the annals of the Her Majesty’s Treasury supervision report for the aforementioned period, a significant 30% of the FCA’s financial crime specialists, comprising a formidable force of 15.8 dedicated employees, were deployed to delve into the realm of crypto asset businesses. These intrepid specialists, armed with acumen and expertise, collaborated seamlessly with sector supervisors, embarking on a quest to ensure compliance with anti-money laundering (AML) requirements.

Yet, amidst the spotlight cast upon crypto-assets, the FCA’s discerning gaze did not waver from the broader panorama of the financial services sector. In a revelation that reverberated across the financial landscape, the 2022-23 report underscored a sobering truth: the susceptibility to financial crime transcends the boundaries of specific industries, enveloping nearly all participants in its encompassing embrace.

This strategic move comes in the wake of heightened concerns regarding the susceptibility of various players within the financial services industry to illicit financial activities. Contrary to popular belief, it has been revealed that nearly all participants in the UK’s financial services sector are vulnerable to financial crime.

The FCA’s allocation of resources underscores the gravity of the situation, with 15.8 employees dedicated to scrutinizing crypto businesses. These specialists, supported by sector supervisors, play a crucial role in assessing the compliance of FCA-supervised firms with anti-money laundering (AML) requirements.

The supervisory efforts extend beyond crypto businesses to encompass a wide spectrum of financial service providers, including retail banking, wholesale banking, and wealth management firms. Risk assessments conducted by the FCA identified these sectors as particularly vulnerable to exploitation for money laundering purposes.

As the report unfurled its findings, it illuminated the vulnerabilities lurking within the corridors of retail banking, wholesale banking, wealth management, and yes, the realm of crypto-assets. Each sector, it seemed, bore the imprint of susceptibility, serving as fertile ground for the insidious tendrils of money laundering to take root.

With meticulous precision, the FCA conducted a symphony of assessments, orchestrating 238 evaluations in total. Among these, the scrutiny intensified upon high-risk firms, with 181 assessments meticulously dissecting their compliance with regulatory mandates. Medium-risk and low-risk firms did not escape scrutiny either, with 34 and 23 assessments respectively probing into their adherence to regulatory standards.

Throughout the reporting year 2022-23, the FCA conducted a comprehensive review, with 238 assessments carried out on various firms. Of these, 181 assessments were completed on high-risk firms, highlighting the urgent need for regulatory oversight. Additionally, broader supervisory teams handled an additional 375 cases related to financial crime and sanctions, with a notable focus on crypto assets.

In its pursuit of effective regulatory enforcement, the FCA utilized various tools, including “Dear CEO” letters, to communicate clear expectations to all firms under its purview. This proactive approach enables the FCA to target firms posing the greatest risk of money laundering through a combination of traditional and innovative methods, such as desk-based reviews and onsite visits.

Yet, beyond the realm of assessments, the FCA wielded another arrow in its quiver: the “Dear CEO” letters. These missives, imbued with the weight of authority, served as harbingers of expectation, outlining clear directives for firms to follow. Through this concerted approach, the FCA targeted entities deemed most susceptible to the siren call of money laundering, employing a blend of traditional methods and modern strategies to safeguard the integrity of the financial ecosystem.

In the grand tapestry of financial oversight, the FCA emerges as a stalwart guardian, its vigilance extending across the breadth of the financial landscape. With a resolute commitment to combatting financial crime in all its manifestations, the FCA stands as a beacon of integrity, navigating the turbulent seas of fiscal transgression with unwavering resolve.

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Sakamoto Nashi

Nashi Sakamoto, a dedicated crypto journalist from the Virgin Islands, brings expert analysis and insight into the ever-evolving world of cryptocurrencies and blockchain technology. Appreciate the work? Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

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