INSIGHTS ¦ Financial Crime Guide – FCA

Summary

The Financial Crime Guide (FCG) November 2023 edition offers comprehensive guidance for firms across all FCA-supervised sectors to counter financial crime risks. It integrates insights from FCA and FSA thematic reviews and includes additional material covering the breadth of financial crime, including money laundering, bribery, corruption, fraud, data security, sanctions, asset freezes, and market manipulation. The guide emphasizes the importance of effective systems and controls, regular updates based on new insights, and adherence to regulatory requirements to prevent and deter financial crime.

Key Points

  1. The FCG provides practical assistance to firms of all sizes on countering financial crime risks.
  2. It draws primarily from FCA and FSA thematic reviews, with additional material reflecting broader financial crime aspects.
  3. Effective systems and controls are crucial for detecting, preventing, and deterring financial crime.
  4. The guide includes guidance on specific risks such as money laundering, bribery, corruption, and fraud.
  5. It contains a list of common and useful terms for reference, although not defined terms.
  6. The FCG will be regularly reviewed and updated to reflect findings from future thematic reviews, enforcement actions, and other publications.
  7. It includes guidance on Handbook rules and principles related to countering financial crime.
  8. The guide addresses compliance with money laundering regulations and EU Funds Transfer Regulation.
  9. It emphasizes the role of senior management in managing financial crime risks.
  10. Financial crime risk assessments are key for applying effective systems and controls.
  11. Firms are encouraged to adopt a risk-based, proportionate approach to managing financial crime risks.
  12. The guide also covers staff recruitment, vetting, training, awareness, and remuneration practices to manage financial crime risks.
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Key Statistics

  • Not explicitly mentioned in the provided text.

Key Take Aways

  • Firms should actively engage in updating and implementing effective financial crime systems and controls.
  • Senior management’s involvement and commitment are critical in addressing financial crime risks.
  • A comprehensive and risk-based approach is essential for effective management of financial crime risks.
  • Regular review and updates of financial crime strategies are necessary to reflect new insights and regulatory requirements.
  • Firms should ensure that all staff are adequately trained and aware of financial crime risks and their obligations.
  • Collaboration across sectors and adherence to regulatory guidelines are vital for combating financial crime effectively.
  • FCG serves as a dynamic resource, adapting to emerging risks and regulatory changes to assist firms in their anti-financial crime efforts.
  • Emphasis on practical examples and good practices helps firms in benchmarking and improving their financial crime controls.
  • The guide encourages firms to consider financial crime risks in product design and business relationships.
  • Policies and procedures should be up-to-date, effective, and understood by all relevant staff.
  • Firms must employ skilled, knowledgeable staff and manage risks related to remuneration practices.
  • Engagement with external guidelines and thematic reviews enriches firms’ understanding and management of financial crime risks.

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