The FCA has not prosecuted a single firm under new money laundering rules introduced in 2017

From: RegTech Analyst

A freedom of information request has unveiled that the Financial Conduct Authority (FCA) has so far not brought in a single prosecution under the new anti-money laundering (AML) rules it introduced two years ago.

The law firm Hickman & Rose made the freedom of information request.

“There is probably action behind the scenes, but it is just so slow,” Andrew Katzen, head of regulatory at Hickman & Rose, told City A.M.. “If there is meant to be a deterrent effect in those powers, how is that impacted by the delays?”

The FCA has previously said it would use the new tools, introduced in 2017, to truly combat money laundering.

When asked, the FCA told City A.M. that the regulator had interviewed two people under caution and was investigating three people in connection with suspected criminal breaches of the regulations.

The financial watchdog also revealed it was conducting four investigations into money laundering.

However, Katzen was not impressed. “The problem is that in making so many public pronouncements about the importance of these powers, if you then aren’t seen to activate them then it may inadvertently send the wrong message,” he said.

The news comes as there were a total of $36bn worth of fines for breaking AML, know your customer and sanctions regulations around the world in 2019.

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