Financial Crime World

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FCA Publishes Analysis of Financial Crime Reporting Guidelines in Bosnia and Herzegovina

The Financial Conduct Authority (FCA) has released an analysis of the financial crime reporting guidelines in Bosnia and Herzegovina, highlighting key trends and developments in the sector.

Background

The FCA supervises approximately 22,000 firms against the requirements in the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs). The analysis provides insights into the financial crime data returned by these firms over three reporting periods between 2017-2020.

Key Observations

The analysis reveals several key observations:

  • Politically Exposed Persons (PEPs): A substantial decrease in PEPs as customers, from approximately 111,000 in 2017/18 to around 89,000 in 2019/20.
  • Wholesale Financial Markets Firms: Wholesale financial markets firms account for an average of 67% of submissions reporting non-EEA correspondent banking relationships, highlighting the complexity of services provided by this sector.
  • Retail Banking Firms: Retail banking firms reported approximately 390,000 high-risk customers in 2019/2020, almost half of all high-risk customers reported by firms across different sectors.
  • Suspicious Activity Reports (SARs): The number of SARs reported to the National Crime Agency (NCA) increased by around 22% between 2017/18 and 2019/20.
  • Investment Management Sector: The investment management sector has the highest number of firms that do not use automated sanctions screening.

Industry Insights

The analysis aims to provide insights for Money Laundering Reporting Officers and industry practitioners, helping them inform their arrangements and risks. The FCA encourages firms to review their financial crime controls and consider implementing additional measures to mitigate potential risks.

Staff in Financial Crime Roles

Firms which submitted the REP-CRIM collectively employed approximately 17,000 full-time equivalent staff in financial crime roles in 2019/20, a slight increase from 15,700 in 2017/18. The FCA highlights the importance of investing in staff and resources to combat financial crime.

Customers Exited for Financial Crime Reasons

A total of 761,437 customers were exited during the 2019/20 reporting period, more than doubling over the last three years. Retail lending and retail banking sectors have exited the most customers each year.

The FCA’s analysis provides valuable insights into the financial crime landscape in Bosnia and Herzegovina, highlighting key trends and areas for improvement. By understanding these developments, firms can strengthen their financial crime controls and mitigate potential risks.