FCA to Extend Annual Financial Crime Reporting Duty to More Firms
25 Aug 2020

The UK Financial Conduct Authority (FCA) is seeking input on a plan that would impose new annual reporting requirements on electronic money institutions, cryptoasset exchange providers and other firms.

In a consultation paper published on Monday, the authority said the businesses would be required to submit Annual Financial Crime Reports irrespective of their total annual revenue.

Under the so-called “REP-CRIM” obligation, covered firms must submit an annual report informing the FCA of their operating jurisdictions, customer base and risks, financial crime compliance efforts, sanctions compliance systems and information on the most prevalent types of fraud they’ve encountered.

The proposal would also apply to FSMA-authorised firms that hold client money or assets and are deemed to pose a higher risk of money laundering, certain payments institutions, Multilateral Trading Facilities, Organised Trading Facilities and custodian wallet providers.

The aim of the planned regulatory change is to give the FCA more “firm-specific information about financial crime from a wider set of firms, across a variety of sectors and firm size,” the authority said. “This additional information will allow our supervisory approach to be more data-led, and broaden our understanding of firms that may have intrinsic [money-laundering] risks due to their activities.”

The FCA will accept commentary on the plan through 23 November 2020.

Read the Consultation Paper here

RiskScreen: Eliminating Financial Crime with Smart Technology

You can claim CPD minutes for this content, by signing up to our CPD Wallet