FCA Warns Firms on Financial Crime Risks Linked to Afghanistan
Fazzaco learned that the Financial Conduct Authority (FCA), the UK's financial markets regulator, has issued a warning to firms about the changes of growing financial crimes linked to Afghanistan.
"Firms should be aware of the possible impact these events may have on patterns of financial activity when they assess risks related to particular customers and flows of funds," the FCA stated.
The regulator expected the companies to 'establish and maintain systems and controls to counter the risk they might be used to further financial crime'.
In addition, these UK firms have to comply with local regulations around money laundering and terror financing. These regulations include provisions for risk assessment, customer due diligence and transaction monitoring.
The regulator asked the firms to consider the impact of these developments on their anti-money laundering policies and procedures in a risk-based manner, and to take the steps necessary to ensure they continue to meet their legal and regulatory anti-money laundering and reporting obligations.
"While Afghanistan is not currently listed as a high-risk jurisdiction in Schedule 3ZA of the MLRs, firms are required by Regulation 33(1)(a) to apply risk-sensitive enhanced due diligence measures where there is a high risk of money laundering or terrorist financing," the FCA added.
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