From 31 December 2016, UK financial firms will have to comply by the Financial Conduct Authority’s new Annual Financial Crime Report rules. The new plans have been added in order to tackle crimes such as fraud and money laundering and to give more information on risks and trends in financial crime.
Firms that will be subjected to the new rules include banks, building societies, investment firms, e-money institutions, consumer credit firms and life insurers. Advisers and investment firms with revenue below £5m will be exempt from filing the return. These firms will be required to submit their first report in in March 2017.
According to a report by Out-law, under the new reporting obligations (55-page), firms will need to submit details such as the number of “politically exposed persons” (PEP) and other “high-risk customers” they have dealings with, as well the geographic areas in which those individuals are located.
Firms must also provide data on the number of ‘suspicious activity reports’ they have submitted internally as well as those disclosed externally to the National Crime Agency (NCA) or under a consent order.
Data to be disclosed will also relate to firms’ compliance with international sanctions and should further detail what they believe to be the top fraud risks the FCA should be aware of.
The regulator said: “At present, our financial crime supervisory work relies on the use of ad hoc data requests to gather information about firms’ systems and controls.
“We do not currently routinely gather information from firms about financial crime, the risks they are exposed to, or how they manage those risks. This affects our ability to operate a truly risk-sensitive supervisory approach in line with global standards.”
The FCA added it will publish “aggregated and anonymised financial crime statistics” using the data it collects, beginning in 2017.
Written by DFGR Research Team – www.dfgr-ltd.com