Money Laundering

(asked on 10th February 2022) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the adequacy of the extent of money laundering checks conducted by the Financial Conduct Authority on its regulated population; and whether he plans to take steps to increase capacity in that organisation.


Answered by
John Glen Portrait
John Glen
Paymaster General and Minister for the Cabinet Office
This question was answered on 25th February 2022
The FCA supervises approximately 22,000 credit and financial institutions and crypto asset service providers for anti-money laundering purposes, and uses a data-led, risk-based approach to target its activity at the areas of highest risk. The FCA’s new Modular Assessment Proactive Programme (MAPP) ensures that the largest, most systemically important firms are assessed more frequently and will enable the FCA to compare the mitigation of the risk across its supervised population.

The FCA actively supervises banks and other institutions and has recently imposed a number of significant penalties, including the landmark criminal prosecution of NatWest bank that saw the bank fined £264.8 million for anti-money laundering failures.

The FCA, as an operationally independent non-governmental body, is responsible for ensuring that it is resourced appropriately to discharge its responsibilities. The FCA publicly consults on its annual budget, which is funded by levies on financial services firms. Therefore, decisions regarding its capacity are the responsibility of the FCA, and it would not be appropriate for the government to comment.

More broadly, the FCA is part way through a significant Transformation Programme, which is accelerating an ongoing programme of reform to make the FCA a more forward-looking, proactive regulator. Amongst other things, it aims to ensure that the FCA can make fast and effective decisions, and prioritise the right outcomes for consumers, markets and firms.

The government fully supports the Transformation Programme and I discuss the FCA’s progress at my regular meetings with the FCA Chief Executive Officer.

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