On July 18th, after completing a multi-firm review, the Financial Conduct Authority (FCA) released its assessment of how well firms are following its current guidance on the treatment of Politically Exposed Persons (PEPs) and their Relatives and Close Associates (RCAs) for anti-money laundering purposes. The following post provides a summary of how well firms have performed.
Financial services firms have been leading the charge in the development of artificial intelligence systems to improve service, reduce costs, mitigate risks, and drive through efficiencies. Until now, AI systems have been largely developed in a legal and regulatory vacuum but the European AI Act, which will impact many UK firms in the same way as GDPR did, is set to change all that. New Link Consulting summarises here the key provisions of the Act and offers practical advice regarding what firms should be doing now to get ahead of the game.
Further to the introduction of the European Market Infrastructure Regulation (EMIR) in 2012 and subsequent revisions in 2015 and 2017, the REFIT program (Regulatory Fitness and Performance Program) was instigated. The purpose of the REFIT for Trade Reporting, which commenced in 2019, has been to review the issues identified in the years since reporting obligations were introduced and to use these findings to enhance the accuracy of Trade Reporting, through improved data quality and industry standardisation.
With the Consumer Duty coming into force on 31st July it is important for impacted firms to not see this as the finishing line, but rather the start of a continuous process to support and enhance customer outcomes.
“Businesses need to take basic steps to investigate their own potential links to sanctioned Russian businesses and individuals, or else face the potential for what should be an avoidable worst-case scenario…You are supposed to be screening absolutely everyone you do business with — suppliers, customers and partners. This is a strict liability, and it doesn’t matter if you didn’t know.” …
