UK Financial Watchdog Now Supervises AML/CTF Compliance For Businesses

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UK Financial Watchdog Now Supervises AML/CTF Compliance For Businesses

13th January 2020 announcement business intelligence cryptocurrencies data protection global markets impact innovations regulations risk tolerance 0

The well known and popular UK financial watchdog which is the Financial Conduct Authority (FCA) is now actively supervising the anti-money laundering (AML) and counter-terrorist financing (CTF) compliance for companies which are carrying out crypto-related activities.

The Bitcoin and altcoin news feature an official announcement published on January 10 which outlines that FCA will supervise whether the UK businesses engaged in crypto-related operations are compliant with the relevant regulations and requirements.

As the announcement also shows, FCA set forth a full list of requirements for crypto-related businesses including the identification and assessment of risks in regards to AML and CFT, as well as the development of policies and controls to eliminate any risks associated with AML and CFT, conduction of customer due diligence and other things.

“We will proactively supervise firms’ compliance with the new regulations, and will take swift action where firms fall short of desired standards and cause risks to market integrity,” the announcement said.

Back in July 2018, the FCA warned that cryptocurrencies pose a huge risk to consumers who are misinformed about them. The UK financial watchdog talked about crypto and recommended that products such as derivatives and exchange-traded notes that reference crypto assets were “ill-suited” to small investors.

Even though the FCA is still thinking about the restriction of crypto derivatives for retail investors, it concluded in 2019 that major cryptocurrencies are “exchange tokens” which are “usually decentralized and primarily used as a means of exchange.”

At the time, the UK financial watchdog was in the crypto news for also emphasizing that such digital currencies do not fall under the regulatory scope of the FCA and are outside its regulatory purview.

In late November 2019, we could see Piers Ridyard who is the CEO of the Radix decentralized ledger, stating that UK authorities are actually relatively open to crypto innovation and said:

“The FCA has been progressive on its views on crypto for years; including monitoring and permitting trials of the technology in sandbox environments before regulatory licenses are needed. The UK generally sees itself as a Fintech leader, and the FCA sees part of its job as not getting in the way of innovation.”

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https://reginnovate.com/2020/01/11/uk-financial-watchdog-now-supervises-aml-ctf-compliance-for-businesses/

 

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