Financial Crime World

Here is the article in markdown format:

Financial Crime Prevention Measures in Anguilla: FCA Proposes Updates to Guide

Anguilla, May 8, 2024

The Financial Conduct Authority (FCA) has released a consultation paper proposing updates to its Financial Crime Guide. The revised guide aims to reduce financial crime and enhance understanding of the FCA’s expectations.

Proposed Changes

The proposed changes include revisions to the sanctions section, incorporating insights gained from both the FCA’s and firms’ experiences. Key updates include:

  • Sanctions Section: Supervised firms are expected to notify the FCA if they are subject to sanctions directly or indirectly, as per Principle 11.
  • Breaches of Sanctions: Firms should evaluate breaches of sanctions due to significant failings in their systems and controls for preventing financial crime.

New Sections

The updates introduce new sections addressing:

  • Proliferation Financing (PF): Firms will be required to carry out PF risk assessments, which will aid in identifying potential risks associated with PF.
  • Transaction Monitoring: Enhanced insights on implementing and monitoring transaction monitoring systems. The revised Guide emphasizes the role of adopting innovative technologies such as AI in supporting effective monitoring practices.

Other Key Updates

The FCA also proposes:

  • Cryptoasset Firms: Making clear references within the Guide that cryptoasset firms should consult it.
  • Travel Rule: Incorporating references to the travel rule within the existing segment on customer payments, risk evaluation, management of elevated risk scenarios, and fraud.
  • Consumer Duty: Clarifying within the Guide that firms should evaluate if their systems and controls are adequate and meet their responsibilities under the Consumer Duty.

Next Steps

The consultation paper invites stakeholders to submit comments by June 27, 2024. Following this, the FCA plans to publish the final amended text of the Guide in a policy statement.

Compliance Assistance

For more information or assistance with compliance, please contact Complyport at [insert contact information].