Module Recap

• During 2013 the FSA was replaced by two regulators: The Financial Conduct Authority and The Prudential Regulation Authority.
• The regulators seek to adopt a ‘risk-based’ approach to supervision. This means that it aims to concentrate its supervisory resources where the risk is greatest. The regulators also adopt a ‘risk-based’ approach to enforcement, in line with its approach to supervision.
• Failures in anti-money laundering controls will not automatically result in disciplinary sanctions, although enforcement action is more likely where a firm has not taken adequate steps to identify its money laundering risks, not put in place appropriate controls to mitigate those risks or failed to take steps to ensure that controls are being effectively implemented.
• The regulators can use a range of investigation and enforcement tools when investigating suspected failures in the anti-money laundering controls of registered businesses, including information requirements, interviews and search warrants.
• The Third EU Money Laundering Directive requires supervisors to have the power to impose effective, proportionate and dissuasive sanctions for non-compliance with the Regulations.