FCA Starts Fining IFAs

Preventing financial crime is high on the FCA agenda and firms should be able to demonstrate strict procedures and controls in this area. Recently the FCA has started fining IFAs for not being able to show that effective anti-money laundering training and procedures are in place, rather than the actual offences of failing to report, tipping off or assisting. We have a range of services, starting from £500 (sole traders) per day.

Every firm, irrespective of size, has the responsibility to ensure that it has effective anti-money laundering procedures in place and that the entire staff is aware of these procedures, by way of anti-money laundering training. For example, has the firm:

• Reviewed the firm’s current procedures against any FCA changes;

• Trained all of the firm’s internal staff on money laundering;

• Retained evidence the firm’s internal staff have all been tested and understand the guidance;

• Can evidence when the firm’s next training will be due;

• Has provided standard forms for the firm’s staff to complete.

Firms which take this issue seriously undertake money laundering training at least once every twelve months.

It is the firm’s responsibility to risk rate every client from a Money Laundering viewpoint and to decide what level of AML should be applied. Each firm’s Money Laundering Reporting Officer is required to complete an annual report and to submit this to senior management, if applicable.