UK’s Financial Regulator publishes new financial crime reporting requirements - AML Intelligence
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UK’s Financial Regulator publishes new financial crime reporting requirements

By Elizabeth Hearst

The UK’s Financial Conduct Authority (FCA) has proposed broadening its annual financial crime reporting requirement to include cryptocurrency exchanges and custodian wallet providers. 

In a consultation paper published on the 24th August, the FCA proposed extending its financial crime reporting irrespective of total annual revenue to include all electronic money institutions, Multilateral Trading Facilities (MTFs), Organised Trading Facilities (OTFs) and all cryptoasset exchange and custodian wallet providers, as reported by the Wall Street Journal

These financial institutions will be required to submit information in relation to suspected financial crime to the FCA, who will use this information to “improve (their) effectiveness and approach with risk-based supervision”, and will “result in improving firms’ money laundering systems and controls, reduce actual risks of money laundering and help improve the overall integrity of the UK financial system”. 

Currently 2,500 of the 23,000 firms under the supervision of the FCA submit financial crime reporting, which the FCA says allows the body to “better risk-rate firms”, “enable (them) to identify industry outliers more efficiently” and “support (their) financial crime supervision strategy”. 

Presently, the FCA’s reporting requirements include financial institutions such as banks, building societies and mortgage lenders and concern their activity type and depend on the institution’s revenue totalling over £5 Million. 

The FCA will accept comments on the proposals until November 23rd with the body’s final recommendations due in 2021. 

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