Financial crime poses significant threats that undermine market integrity and public trust

February 12, 2024

Financial crime poses significant threats that undermine market integrity and public trust

Financial crime poses significant threats that undermine market integrity and public trust. Recognising the urgent need for action, the Financial Conduct Authority (FCA) has prioritised tackling these challenges over a 3-year strategy. Progress has already been made through collaborative efforts between regulators, government, law enforcement, industry and consumers. However, ongoing diligence is vital to address evolving criminal threats.

As a regulated firm, MEMA advises clients to take the following steps:

  1. Leverage Technology
    Implement advanced analytics, machine learning and biometrics to enhance fraud detection and prevention capabilities. Stay updated on new regulatory technologies and participate in industry working groups.
  2. Foster Collaboration
    Proactively share fraud intelligence, typologies and best practices with peer firms, regulators, law enforcement and industry bodies through formal and informal channels. Lead or participate in public-private partnerships.
  3. Enhance Consumer Awareness
    Leverage platforms like ScamSmart to educate consumers on recognising and avoiding scams. Raise awareness through campaigns, staff training and customer communications.
  4. Measure Effectiveness
    Track detailed metrics on financial crime interventions to understand effectiveness and guide resource allocation. Be transparent internally and with regulators.
  5. Strengthen Compliance
    Review and enhance AML, KYC, transaction monitoring and suspicious activity identification systems and controls. Submit SARs promptly and keep abreast of evolving regulatory expectations.
  6. Update Policies
    Frequently review and update financial crime policies and procedures to address new risks. Maintain robust governance and approval processes.
  7. Promote Responsibility
    Embed a culture across the firm where employees at all levels take responsibility for reducing financial crime risk and feel comfortable speaking up about concerns.
  8. Assist Reform
    Support government proposals to reform the AML supervisory regime through consultation responses and industry engagement. Highlight what works well and areas for improvement.

In conclusion, MEMA has extensive experience advising firms on combating financial crime and recommends taking a proactive approach as outlined above. Financial institutions have a crucial role to play in tackling these threats through robust prevention, detection, and reporting measures.

We urge firms to leverage available technologies, collaborate across the industry, and keep customers protected. The strategies proposed will strengthen your defenses and contribute to a coordinated effort to uphold integrity and stability.

For any questions or to discuss further, please reach out to MEMA's experts.


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Financial crime poses significant threats that undermine market integrity and public trust

Financial crime undermines market integrity and public trust, prompting the FCA's 3-year strategy. MEMA advises firms to use tech, collaborate, educate, strengthen compliance, foster responsibility, and support AML reform. For assistance, contact MEMA's experts.

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