In a 19-page thematic review published today, the watchdog found both good and poor examples of risk management in a sample group of 22 firms, concluding that the industry should have “done more in ensuring they had suitable systems and controls in place” given recent regulatory communications on financial crime.
The thematic review found most had a robust system in place to deal with anti-money laundering, bribery and corruption risks, but some firms could not demonstrate the “effectiveness of senior management oversight and challenge”.
Furthermore, some firms had “inconsistent or absent controls to assess, classify and record risks posed by new customers”, with gaps in due diligence on high-risk customers.
Risk assessments were not necessarily acted on, the review found, while most firms failed to demonstrate “adequate” systems and controls for assessing bribery and corruption risks posed by relationships with agents or introducers.
The FCA said it would be speaking to some firms about actions they needed to take, and that it expected the entire sector to consider the review and improve their systems accordingly.