HMT report sets out FCA AML/CTF supervisory and enforcement activity 2020-2022

Article summary

HM Treasury (HMT) has published its annual report for 2020-2022 on anti-money laundering and counter-terrorist financing (AML/CTF) supervision, which includes details on the Financial Conduct Authority (FCA)’s performance as a statutory supervisor under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, SI 2017/692 (MLRs). The FCA considers the areas of financial services most vulnerable to money laundering are retail banking, payments and digital assets, wholesale financial markets, and wealth management. Among other things, the report notes that almost 90% of cryptoasset businesses either withdrew their applications or were rejected or refused registration by the FCA during this period. The report also discusses the impact of the conflict in Ukraine, noting that in the last year the FCA has opened 87 cases related to financial sanctions.