Review of firms finds uneven defences against romance fraud

With a nine per cent increase in reports over the financial year 2024/2025, this exploitative crime is growing in scale and complexity. In a deep dive into the systems of six varied banks and payment institutions, the regulator saw some "meaningful, tailored care" as well as a lack of consistency across the industry. Denis O'Connor reports.

Denis O'Connor is a fellow of both the Institute of Chartered Accountants in England & Wales and the Chartered Institute of Securities and Investment. He was a member of the British Bankers' Association Money Laundering Committee from 2003-10 and a member of the Joint Money Laundering Steering Group's board and editorial panel between 2010 and 2016. He has been a frequent speaker at industry conferences on financial crime issues, both in the United Kingdom and abroad.

The Financial Conduct Authority recently published a review of a sample of firms' controls and procedures around romance fraud. [1] Unsurprisingly, while the regulator found some examples of good practices within regulated entities, it also identified many areas where improvements are needed.