The UK Financial Conduct Authority (FCA) sent today a letter to the CEOs of 1000 firms it regulates for their failings in properly addressing #antimoneylaundering requirements.
The FCA found that some of the firms are just not getting the basics right. 😟
This is a strong statement!
The FCA observed common weaknesses in critical areas, and inadequate #training is one of the mais issues mentioned by the FCA. 😲 « We observed a lack of Financial Crime training for employees, and a lack of engagement at senior management level in this area. »
More specifically, the FCA mentioned the issues stemming from inadequate training:
« During our firm assessments we identified that some firms’ Financial Crime training has not been given the importance that it demands. We observed instances where employees were not provided with role-specific training, and some of the training failed to cover crucial topics, such as SAR reporting guidance. The lack of effectiveness of the training provided to staff has also been evident during interviews with employees, who, in some instances, have demonstrated low levels of Financial Crime awareness.
Firms must take appropriate measures to ensure that its employees are made aware of the law relating to ML, TF and PF. Employees must be given regular training in how to recognise and deal with transactions and other situations which may be related to money laundering or terrorist financing. Firms must maintain a record in writing of the measures taken and the training given to its employees. »
However, it is also the elephant in the room that it is long overdue that financial institutions implement adequate, role-specific, effective training. The current attitude in most cases is more often than not 'let's do it as short as possible and tick the box'.
For those who want to get it right, at Serapy, we have the solution:
Gamified, role-based online trainings, which help the employees to understand better the topics, to learn and retain the information, and for the institution to demonstrate that it has indeed invested in proper training, and not in a short presentation or a fancy video which is forgotten shortly after. And the bonus is: a compliance game can be and is fun! 😉
Want to know more? Reach out to Serapy, we'll be happy to help you!
You can find the FCA letter here:
https://www.fca.org.uk/publication/correspondence/dear-ceo-letter-action-response-common-control-failings-anti-money-laundering-frameworks.pdf
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