The FCA is to implement new anti-money laundering measures on Submit Workplace transactions amid indicators that a whole lot of thousands and thousands of kilos could possibly be laundered yearly by means of the community.
The regulator says it’s taking steps to sort out the chance of cash laundering by way of the Submit Workplace, notably in relation to money transactions.
The regulator is working with the Nationwide Financial Crime Centre (NECC), business and authorities to “strengthen controls” however says it needs “professional prospects” to have the ability to proceed to make use of the Submit Workplace for on a regular basis banking.
The brand new measures will notably have an effect on money deposits with money deposit limits on the Submit Workplace lower to beneath £20,000 per transaction.
Among the many FCA measures are:
- A transfer in the direction of card-based transactions and away from paying-in slips to permit enhanced monitoring
- Upskilling employees to identify patterns of suspicious exercise
- Enhancing monitoring capabilities in banks which permit them to establish suspicious exercise
- Decreasing money deposit limits on the Submit Workplace, topic to buyer preparations, to beneath the prevailing restrict of £20,000 per transaction
- Decreasing the time taken to submit Suspicious Exercise Reviews to the Nationwide Crime Company (NCA)
- Enhancing intelligence sharing in order that info is handed on to different corporations, regulation enforcement and the FCA regularly
FCA analysis discovered that 6% of adults within the UK used money to pay for all the pieces over the 12 months from Might 2021, with this determine rising (9%) for these in susceptible circumstances. The FCA says will probably be striving to make sure that individuals who want to use money for on a regular basis spending weren’t obstructed.
Sheldon Mills, govt director of customers and competitors on the FCA, stated: “‘We now have labored in partnership with regulation enforcement, business and authorities companions to make sure folks and companies can nonetheless draw on the important money banking providers offered by the Submit Workplace, whereas addressing gaps that criminals might abuse.
“This essential work is a part of the FCA’s three-year technique on lowering monetary crime and rising client safety.”
The FCA says that, in accordance with NECC estimates, a whole lot of thousands and thousands are laundered annually by means of the money deposit channel on the Submit Workplace. It provides that whereas banks have made good progress in enhancing safeguards, together with a 43% drop within the time taken to report suspicious exercise at Submit Places of work, there’s nonetheless extra to do.
The FCA says it’s going to additionally take a look at the safeguards put in place to contemplate whether or not corporations have taken steps to guard entry to money on the Submit Workplace for professional prospects.