UK money laundering watchdog ditches half of its inquiries

The UK’s Financial Conduct Authority (FCA), which regulates the country’s 60,000 financial services firms and financial markets, has abandoned half of its inquiries into money laundering breaches and is embarked on a series of reforms aimed at making the regulator more effective.

Established in 2013 with powers intended to make it an effective watchdog, the FCA has not brought a single prosecution despite its founding aim to use its powers to curb financial crime.

No prosecutions

According to data revealed by the FT newspaper the FCA has ditched seven out of its fourteen money laundering investigations.

Five of the cases were criminal investigations and the other two investigations could have resulted in either criminal or civil action. No prosecutions are expected as a result of these probes.

Room for improvement

The FCA has said it is making substantial improvements, including the establishment of a new data strategy with the aim of bringing in the analytical skills it needs to raise the minimum standard of data understanding amongst its staff.

This year the authority conducted a review of how effectively it sources, receives, assesses and prioritises intelligence. 

Review results soon

The results of a number of reviews into potential failures of the regulatory system are expected to be known soon.

Commenting on the expected review results, interim chief executive Christopher Woolard said, “I have no doubt there will be painful lessons and the FCA will need to learn from them.” 



Categories: Trade Based Financial crimes News

%d bloggers like this: