Meeting the challenge? FCA review of challenger bank financial crime controls

Ensuring that regulated firms areeffective in preventing financial crimesuch as money laundering andsanctions evasion, remains a key priority for the Financial Conduct Authority –including where new business models enter the industry. Emma Radmorelooks at the main findings of a thematic review and how challenger banks (andothers) should react to the regulator’s conclusions.

Emma Radmore(legal director) is a member of Womble BondDickinson’s financial services team in London. Contact heronemma.radmore@wbd-uk.com.

Towards the end of April 2022, the FinancialConduct Authority published a thematic review based on its research into howchallenger banks in the United Kingdom assess their financial crime risk. Itcarried out its review during 2021 and focused on some of the newer challengerbanks, specifically those that offered a relatively easy application process.Six of the banks in its study were retail banks.