A letter was issued in May 2021 and then made public via the organisation’s website at the end of June 2021. According to the FCA, the letters outlined the key issues and weaknesses that surround retail banks’ financial crime controls and requested that each company completes a gap analysis of the identified weaknesses and take prompt action to resolve them by September 17 2021.
The letter also detailed that the FCA is likely to request a demonstration of the steps taken after the aforementioned date, and, if deemed not good enough, the FCA may consider regulatory action to manage the financial crime risk faced. The FCA noted the common weaknesses identified were governance and oversight, risk assessments, transaction monitoring, suspicious activity reporting, and due diligence.
The letter also highlighted that, in many cases, consistent failings have led to intervention – requiring firms to appoint a skilled individual to carry out a detailed review, impose business restrictions and in more severe cases – enforcement action.
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