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FCA: Banks Should Rethink Derisking Strategies

Aarti Maharaj | April 29, 2015

The U.K. Financial Conduct Authority (FCA) regulator is urging banks to exercise “judgment and common sense” when cutting categories of customers from their services that are more likely to engage in anti-money laundering activity, says FCA. The regulator is calling for banks to rethink their derisking strategies as this move may trigger consumer protection or competition issues.

The regulator said that money transfer services, charities and FinTech companies are among the sectors that are affected by the bank’s move to shy away from providing  services.

FCA is recommending that financial institutions roll out and maintain effective policies that identify, assess and manage money-laundering risk. “These policies and procedures must be comprehensive and proportionate to the nature, scale, and complexity of the bank’s...

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