Financial Crime
The reduction of financial crime is one of the FSA's four statutory objectives: section 6 of the Financial Services and Markets Act 2000 requires us to aim to reduce the extent to which regulated persons and unauthorised businesses can be 'used for a purpose connected with financial crime'. Financial crime includes any offence involving money laundering, fraud or dishonesty, or market abuse. The objective interacts with our three other objectives – protecting consumers; market confidence; and public awareness.
In pursuing our financial crime objective, our main focus is on firms' risk management, systems and controls. We also work closely with the range of other organisations involved in fighting financial crime – such as the government, law enforcement, trade associations, the Joint Money Laundering Steering Group – in developing and delivering effective defences against money laundering, market abuse, fraud etc.
The role of the FSA’s financial crime sector team is to co-ordinate and support the work of the whole organisation as part of our financial crime objective. Internally, this involves supporting colleagues around the organisation in identifying financial crime risks and how they can be mitigated.
Financial Crime Outcomes
- FSA is satisfied that persons of questionable integrity do not manage, own or control firms operating in the UK financial sector
- Firms in the UK financial sector act proportionately to prevent financial crime - fewer commit financial crime themselves and firms manage the risk of being used by others to do so with appropriate skill and care
- Consumers are better equipped to protect themselves from financial crime
- The international and UK financial crime policy frameworks are more risk-based and proportionate, and FSA delivers what is required of it within those frameworks
- FSA's financial crime risk mitigation is increasingly effective, economic and efficient
- FSA co-operates effectively with the right partners to achieve these outcomes
For the latest news on financial crime sector initiatives, please see the latest edition of our quarterly newsletter.