Financial Crime World

Financial Crime Reporting Guidelines in Macedonia, the Former Yugoslav Republic of

In a bid to enhance its supervisory efforts and ensure compliance with anti-money laundering (AML) regulations, the Financial Conduct Authority (FCA) has released an analysis of financial crime reporting guidelines in Macedonia, the former Yugoslav republic of. The report highlights key trends and developments in the sector, providing valuable insights for Money Laundering Reporting Officers and industry practitioners.

Collaboration and Partnership

The FCA emphasizes the importance of collaboration and partnership with government agencies, law enforcement, and other authorities to raise standards across the regulated sector. This approach is crucial in addressing the complexities of AML, particularly in a jurisdiction like Macedonia where money laundering and terrorist financing pose significant risks.

Benefits of Collaboration

  • Enhances supervisory efforts
  • Promotes compliance with AML regulations
  • Raises standards across the regulated sector

REP-CRIM Submissions

Between 2017-2020, the FCA received a total of 5,685 REP-CRIM submissions from over 2,300 different firms. This data provides a comprehensive overview of AML trends and developments in the sector.

Key Observations

Politically Exposed Persons (PEPs)

  • The number of PEP customers reported by firms decreased significantly in 2019/20 and 2018/19 compared to 2017/18, attributed to changes in FCA guidance.
  • Changes in FCA guidance have led to a decrease in PEP customer reports.

Non-EEA Correspondent Banking

  • Wholesale financial markets firms account for a significant proportion of submissions reporting non-EEA correspondent banking relationships, highlighting the complexity of services provided by this sector.
  • Wholesale financial markets firms are responsible for a large number of non-EEA correspondent banking reports.

High-Risk Customers

  • Retail banking firms reported a substantial number of high-risk customers in 2019/20, reflecting their business models which increase exposure to money laundering risks.
  • Retail banking firms have a high number of high-risk customers due to their business model.

Suspicious Activity Reports (SARs)

  • The number of SARs reported to the National Crime Agency has increased by 22% between 2017/18 and 2019/20.
  • There has been a significant increase in SAR reports over the past three years.

Automated Sanctions Screening

  • The use of automated sanctions screening is increasing, but the investment management sector lags behind in this area.
  • The investment management sector needs to improve its use of automated sanctions screening.

Financial Crime Staffing

  • Firms collectively employed approximately 17,000 full-time equivalent staff in financial crime roles in 2019/20, a 10% increase from 2017/18.
  • There has been an increase in the number of staff working in financial crime roles over the past three years.

Customer Exits and Refusals

  • A total of 761,437 customers were exited during the 2019/20 reporting period, with retail lending and retail banking sectors experiencing the most significant exits.
  • There have been a large number of customer exits in the retail lending and retail banking sectors.