Financial Crime Systems: The Essential Guide to Compliance

The financial services industry is under increasing scrutiny from regulatory bodies, concerning systems and controls to combat financial crime. 

The Financial Conduct Authority's (FCA) intensified focus was highlighted by their ‘Dear CEO letter’ which underscores the urgency for financial institutions to fortify their anti-money laundering frameworks. This development marks a significant call to action for all Annex 1 Firms.

Understanding the FCA's latest mandate

The FCA has clearly outlined its expectations for firms within the financial sector. By 4th of September 2024, these firms are required to conduct a thorough gap analysis in response to the common weaknesses identified by the regulatory body.

Our key areas of focus

• Business models: Do you have discrepancies between your registered activities and actual activities, and do your financial crime controls align with your current and planned business nature and scale?
• Risk assessments: Are your Business Wide Risk Assessment (BWRA) and Customer Risk Assessment (CRA) complete, aligned and functioning effectively?
• Due diligence: Ongoing Monitoring and Policies & Procedures - how good is your documentation, and how consistently do your staff follow required actions to satisfy your obligations under the law?
• Governance, management information and training: Are you confident that you have these fundamental areas covered adequately, and have you got clear audit trails for financial crime-related decision-making?

This directive from the FCA is a mandatory call to action, which could lead to stringent regulatory interventions if ignored. Future engagements with the FCA will likely involve a review of measures taken to mitigate identified risks. So, firms are expected to identify gaps and take concrete steps to address these shortcomings.

Brighter Consultancy: Your partner in compliance

In response to these challenges, Brighter Consultancy offers comprehensive solutions to tackle these regulatory demands efficiently. Our partnership aims to simplify the complex landscape of financial crime prevention through a tailored Healthcheck Assessment. 

This thorough assessment covers the critical areas highlighted by the FCA, providing a clear, documented gap analysis.

Our combined expertise and support

• Healthcheck assessment: We cover all key areas of focus, including a documented gap analysis. 
• Gap analysis and support: Where gaps are identified, we have the people, system tools and data capability to support in delivering a proportionate response that will enable you to meet your obligations and be on the front foot.
• Compliance roadmap: We will work with you to document a clear roadmap of agreed actions, which can be implemented with a combination of your internal resources where available, with support from us as required.
• Positive outcomes: We have experience in delivering great outcomes for clients like you in this specific area.

Should any gaps be identified, our combined expertise in people, system tools, and data capabilities positions us uniquely to support your organisation in devising and implementing a proportionate response. This ensures compliance and strengthens your financial crime control framework.

Our collaborative approach

We prioritise collaboration, working with your team to document a clear roadmap of actionable steps. This roadmap can be executed using a mix of your internal resources supplemented by our extensive support, as needed. Our proven track record in delivering positive outcomes in this domain underscores our commitment to excellence and client satisfaction.

Proactive measures for cost-effectiveness compliance

The risks of inaction are too significant to bury your head in the sand, and a proactive approach is crucial to cost-effective compliance. A confidential discussion with our team could help you face these regulatory challenges head-on and significantly reduce the risk of regulatory penalties.

Brighter Consultancy can help pave the way for a secure, compliant future.

For more information contact Brighter Consultancy today.