The FCA has published its second Anti-Money Laundering Annual Report.
Among the items in the Annual Report is a discussion in chapter 4 concerning the FCA’s new anti-money laundering (AML) strategy.
The FCA is classifying all regulated firms subject to the Money Laundering Regulations 2007 into four risk bands. The FCA is doing this by considering a number of factors, such as the nature of the firm’s business and the jurisdictions where it is located or operates. This classification of firms in relation to their financial crime risk will not affect a firm’s conduct risk classification (i.e. C1 – C4). However, it may result in a firm in a low conduct risk category receiving relatively more supervisory attention from a financial crime perspective.
Firms covered by the FCA’s systematic AML programme will continue to be subject to the most intensive AML supervision. Firms in the category below that will be subject to a regular inspection programme, consisting of two or three day on-site visits. The FCA expects the full cycle for these visits to last around 24 months. At the end of each cycle the FCA plans to look again at the categorisation of these firms, to decide whether they should remain in this category, or be moved up or down.
View FCA Anti-Money Laundering Annual Report 2013/14, 10 July 2014