FCA finds weak corruption defences at platforms and fund managers

Some asset management and platform firms are displaying "common weaknesses" in their defences against money laundering, bribery and corruption, the Financial Conduct Authority (FCA) has said.

A thematic review of 22 firms' systems and processes uncovered a series of faults, including inconsistent or absent methods of identifying risks posed by new customers and weaknesses in how firms followed up on risk assessments.

Some firms considered the longstanding nature of some of their business relationships allayed the need to conduct further due diligence, while others failed to verify the legitimacy of sources of funds used in business relationships with high risk customers, the regulator said.

However, the FCA said it also found examples of good practice across the industry and did not indicate it had referred any firms to enforcement.

There is still work for most firms to do to ensure bribery and corruption risks are appropriately mitigated, it concluded.

The FCA set out examples of good and poor practice as part of its thematic review. Read the paper HERE.

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