Addressing financial crime with risk management

Addressing financial crime with risk management

The Financial Conduct Authority (FCA) has recently demonstrated their commitment to holding reluctant firms accountable in a speech titled ‘Doing the right thing’.

RegTech platform Acuminor recently a comment on the FCA’s speech.

The FCA’s endeavour to regulate the financial space shines through their actions, both pragmatic and proportionate, aimed at firms that swiftly acknowledge and rectify their oversights.

Ms Chambers of the FCA stressed on the concept of ‘doing the right thing’, and stated that “Early detection is always more effective”. She reinforced the message that firms should be the first to step forward if they harbour any concerns. As a part of this initiative, the FCA is enhancing their toolset – from a tech and data perspective, and also through strategic recruitment.

The appointment of Steve Smart, the former director of intelligence at the National Crime Agency, is a noteworthy move in this regard. Ms Chambers highlighted Steve’s presence by saying, “There really is nowhere to hide with him, so I would advise everyone to get their ducks in a row now”.

In 2022, banks across the globe reportedly invested approximately $11bn in technologies aimed at curbing money laundering. However, it’s estimated that the value of money laundering activities globally could range from $2.3 to $2.8trn annually. It is now more critical than ever for businesses to identify, assess, and understand their financial crime threats and risks, as well as to evaluate the efficacy of their financial crime frameworks.

Acuminor explained that ‘doing the right thing’ may initially require firms to reassess their organisation-wide financial crime risk. Firms need to ponder upon their risk and threat identification methods, assess their control framework, and scrutinise their threat-mitigation designs.

Furthermore, the adequacy of these systems, the last review of their business-wide risk methodology and process, and their active engagement with regulators on identified weaknesses and their plans to rectify them, should also be subjects of regular review.

Read the full post here.

Keep up with all the latest FinTech news here

Copyright © 2023 FinTech Global

Enjoying the stories?

Subscribe to our daily FinTech newsletter and get the latest industry news & research


The following investor(s) were tagged in this article.