All FSMA-authorised firms must put in place systems and controls to prevent financial crime. Financial crime includes money-laundering.
In addition, all firms who are subject to the Money Laundering Regulations 2007 must put in place systems and controls to prevent and detect money laundering. Money laundering is the process by which the proceeds of crime are converted into assets which appear to have a legitimate origin.
The FSA’s role
The FSA has a statutory objective to reduce the extent to which it is possible for a firm to be used for a purpose connected with financial crime, which includes money-laundering.
All FSMA-authorised firms are subject to our financial crime rule in SYSC. Financial crime includes money-laundering. The FSA’s financial crime rule is set out in SYSC 3.2.6 R (for insurers and managing agents) and SYSC 6.1.1R (for other firms). Principles 1, 2 an 3 are also relevant.
All FSMA-authorised firms, with the exception of mortgage brokers, general insurers and general insurance brokers, are also subject to our specific AML rules and guidance in
SYSC 3.2.6 A R – SYSC 3.2.6J G (for insurers and managing agents) and SYSC 6.3 (for other firms).
The FSA is also the competent authority for supervising compliance of most credit and financial institutions with the Money Laundering Regulations. This includes financial institutions who are not FSMA-authorised.
