LONDON—Retail banks in the U.K. have been issued a warning by the Financial Conduct Authority (FCA) over continuing weaknesses and failings surrounding their financial crime controls.
The warning was included in a letter from David Geale, the director of retail banking and payments supervision for the FCA, and sent to banking industry chiefs across the U.K.
The letter outlined the key issues and weaknesses surrounding retail banks’ financial crime controls and requested that each firm complete a gap analysis of each of the identified weaknesses and take prompt and reasonable steps to resolve them by Sept. 17.
The letter cautioned the regulator is likely to request a demonstration of the steps taken after this date and, if deemed inadequate, the FCA may consider appropriate regulatory action in order to manage the financial crime risk posed, London Loves Business Reported.
The common control weaknesses identified and cited included governance and oversight, risk assessments, due diligence, transaction monitoring and suspicious activity reporting.