Month: May 2025

April 2025 | London – The Financial Conduct Authority (FCA) has released an updated version of its Financial Crime Guide (FCG), reinforcing its commitment to supporting regulated firms in the fight against financial crime. This edition introduces practical enhancements and sharper regulatory expectations, especially in the areas of risk management, KYC remediation, and AI assurance. As technology adoption increases across financial services, the FCA’s guidance places renewed emphasis on embedding effective risk management strategies, enhanced anti-fraud measures, and the strategic use of compliance technology, including AI tools. Key Updates in the 2025 Financial Crime Guide The revised FCG maintains focus on key pillars of financial crime prevention—transparency, sound controls, and market integrity—while expanding into modern risk challenges. 1. Anti-Money Laundering (AML) Greater emphasis on dynamic customer risk profiling and the use of advanced controls for high-risk cases. Specific focus on PEPs (Politically Exposed Persons) and complex beneficial ownership structures. Guidance on applying KYC remediation aligned with updated expectations. 2. Sanctions Compliance Enhanced direction regarding global sanctions regimes. Expectations around automated screening tools and AI-supported processes. Best practices for third-party reliance and external vendor management. 3. Fraud Prevention Inclusion of new fraud typologies, especially those emerging in digital and mobile channels. Emphasis on AI-driven fraud detection tools and improved risk-scoring methodologies. 4. Governance and Risk Oversight Clearer expectations on internal reporting mechanisms, third-party due diligence, and governance frameworks. Introduction of AI assurance to validate automated compliance systems and decision-making processes. What’s New in the 2025 Edition? ✔ Self-Assessment Tools A newly introduced set of questions enables firms to test the effectiveness of their financial crime controls and improve risk oversight frameworks. ✔ Illustrative Case Studies Real-world examples now accompany the guidance, showcasing both effective and weak compliance practices for practical learning. ✔ Broader Sector Coverage The FCG’s applicability has been expanded to include a wider range of sectors: Retail Banking Fintech Cryptoasset Providers Wealth Management Regulatory Expectations at a Glance The refreshed guide aligns with the FCA’s broader strategic goals, including: Risk-based and proportionate compliance tailored to each firm’s model. Clear accountability for outsourced compliance functions. Recognition for firms that demonstrate self-reporting, remediation, and cooperation. Increased regulatory focus on KYC remediation and AI assurance integration. What Does This Mean for Regulated Firms? All FCA-regulated firms are urged to: Review their current internal procedures against the updated guide. Use the new self-assessment tools to identify any compliance gaps. Update training for staff, with emphasis on digital risk, sanctions, and AI-based controls. Explore compliance technologies to enhance transaction monitoring, KYC automation, and fraud prevention. How ACS Operations Can Support Your Compliance Journey At acsoperations.com, we specialise in helping financial institutions and fintechs meet evolving regulatory requirements with confidence. Our services are fully aligned with the FCA’s latest guidance and include: 🔍 Policy & Framework Reviews Full reviews of AML, sanctions, anti-bribery and corruption (ABC) policies—supported by robust KYC remediation solutions. 📊 Risk Assessments & Gap Analysis Custom-built assessments using the FCA’s self-assessment model, designed to uncover and close control weaknesses. 🎓 Training Programmes Tailored, scenario-based training focused on emerging threats and AI assurance within compliance systems. ⚙ Technology Integration Advisory and implementation support for automated screening, transaction monitoring, case management, and operational KYC. 🤝 Outsourced Compliance Support From strategic advisory to end-to-end managed compliance services, we help firms tackle both internal and third-party risk. Ready to Strengthen Your Compliance Strategy? With deep sector knowledge and hands-on expertise, ACS Operations is your trusted partner for navigating FCA regulations—particularly in areas of KYC remediation, fraud prevention, and AI assurance. Address 1 Montpelier Avenue, London, England, W5 2XP Email info@acsoperations.com Phone Number 020 3633 0203