Laura WilesThe FCA has published a multi-firm review considering how firms in the retail, wholesale and life insurance sectors can improve their financial crime systems and controls.
The cross-sector findings report the following areas for improvement:
- AML transaction monitoring
- Coordination of monitoring and testing
- Supplementing overarching frameworks with documented procedures
- Producing and reviewing third-party performance
Furthermore, the sector specific findings reported that the retail insurance sector could improve its client due diligence documentation and risk assessment controls, while the wholesale insurance sector could improve its fraud management and transaction monitoring.
Generally, the review found that life insurance firms had stronger controls than their retail and wholesale counterparts, perhaps reflecting the different regulations and products in each sector.
Overall, the report found that financial crime systems and controls were mostly effective. The FCA will continue to monitor how all firms are meeting the requirements.