As banks take a blanket approach to avoiding ‘high risk’ customers including money transmitters, non-profit organisations and financial technology companies, the FCA has warned that risk should be managed rather than avoided.
8 September 2015 - Posted by Annabella Cyril in Anti-Bribery And Corruption, Anti-Money Laundering
The Financial Conduct Authority (FCA) published updated regulations governing the accountability of Money Laundering Reporting Officers (MLROs) earlier this year. While much of the attention of the new regime focused on the effect on UK banks, a substantial portion of the changes will have a significant impact upon foreign financial institutions operating in Britain.
A report from the Ministry of Justice, ‘Insight into awareness and impact of the Bribery Act 2010 among SMEs’, has revealed that a third of small and medium sized businesses have not even heard of the 2010 Bribery Act, while some of those who have do not fully understand its reach. Given the law allows for a maximum penalty of ten years in jail, unlimited fines and confiscation of property, this should be a major concern for the SME community.
Our largest financial institutions are subject of media scrutiny once again after the latest misconduct scandal hit the headlines. Over the past six years public anger at banks has left their reputations severely damaged. In a world where reputational damage is just a tweet away, it is vital that banks manage their reputations to restore customer trust and satisfaction.