The U.K. Financial Conduct Authority, or FCA, warned wholesale brokers Thursday to enhance their anti-money laundering programs after a review of the sector uncovered a string of common compliance weaknesses. Wholesale brokers primarily act as agents for institutional clients such as banks, investment funds and, in some cases, the super-wealthy, but tend not to take proprietary trading positions themselves. They instead match buyers and sellers seeking to execute trades in equities, bonds, commodities, derivatives and other financial instruments. In a 52-page report, the FCA disclosed that a review of a sample of the 280 firms that make up the U.K....
The Financial Conduct Authority reviewed money laundering risks in the capital markets and found that gaps remain in the defenses and controls of wholesale brokers for preventing financial crime.