FCA Advises Firms to Embed Data and Technology to Combat Financial Crimes

Sarah Pritchard, the FCA executive director of markets, spoke at the Financial Crime Summit in London and discussed the ultimate need for robust protocols to fight against financial crimes. 

Sarah Pritchard, Financial Conduct Authority (FCA) executive director, discussed financial crime issues and essential security measures to combat monetary risks. She asked industries to incorporate technology for tackling financial crimes and improving safety protocols. During the Financial Crime Summit in London , the executive director warned firms to strengthen their strategies that can address the increased number of crimes as they would worsen in coming times. 

“My message to all firms is this: embed your financial crime checks in your systems from day one, but keep evolving as the threats evolve,” said the executive director, “use the power of data and tech, and stay alert for situations in which you may need to recalibrate your defenses and alerts.”

Sarah considered firms as the “first line of defense” to combat AML concerns. She added, “You are the first responders and front line in the fight against financial criminals, and together we can limit their spread.”

The director urges companies to be diligent with Know Your Customer (KYC) processes and advises them to calibrate alerting systems properly. She pointed out the good examples uncovered by the regulatory authorities regarding tech and geolocation data used for a faster customer identity verification process. Moreover, this information is also used for scan monitoring through customers checking who used multiple devices while logging into accounts. 

Sarah Pritchard discussed the need for robust standards for anti-money laundering protocols when she was talking about crypto. She said, “So far, 37 firms have met these standards after following our guidance, but they will need to continue to meet those standards to keep their registration”, and she also added that these are not just high-tech offerings at the risk of misuse. 

According to her, a tech print by the regulator will be held this month. The purpose is to have a discussion with financial industries to incorporate tech solutions for tackling the possible risks. 

The executive director discussed the need for compelling and urgent robust protocols so that fraud detection and data sharing can be done in real-time. She added, “Together with the Payment Systems Regulator and industry partners, we want to understand the tech solutions that could help prevent APP fraud in real-time.” 

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