A new British bank regulator that will assume the Financial Services Authority's oversight duties is unlikely to tighten anti-money laundering compliance regulation for financial institutions, say consultants. Britain's Conservative and Liberal Democrat coalition government moved on June 20, 2010 to break the authority, known as the FSA, into two entities: the Prudential Regulatory Authority, which will be a subsidiary of the Bank of England and responsible for the prudential supervision of the banking system, and the Financial Conduct Authority (FCA), which will regulate how firms conduct their business. HM Treasury said in February that the FCA would "take a tough...
As the U.K.'s Financial Conduct Authority navigates its first week of existence, the agency's newly released business plan promises a tough approach on fighting financial crime with a focus on complex cases.
The U.K.'s planned new regulator of banks and other financial institutions would impose tougher oversight than its predecessor, a series of proposals for the agency's forthcoming operations handbook show.
U.K. financial regulators will likely only get tougher on British banks that violate anti-money laundering laws in the coming year, possibly going so far as to prosecute individuals, according to Jonathan Fisher QC, a London-based barrister.
The United Kingdom's chief financial regulator fined Royal Bank of Scotland nearly USD $9 million on Tuesday, the agency's largest penalty ever for anti-money laundering and sanctions compliance failures.