New FCA chief executive faces money-laundering challenge – comment

Commenting on the appointment of Nikhil Rathi as Chief Executive of the FCA, Martin Cheek, managing director at AML experts SmartSearch, said: “The new chief executive will face a number of important challenges over the coming years as the financial system comes to terms with the damage wreaked by Covid-19.

“One of the biggest challenges is the increased threat of financial crime highlighted by the Financial Action Task Force in recent months, as criminals look to take advantage of the crisis.

“There have been significant improvements in the way financial institutions approach the fight against money laundering in recent years, but there are still too many firms operating outdated processes that have not kept pace with the increasingly sophisticated methods employed by criminals.

“One of the FCA’s roles will be to encourage firms to move with the times, using a combination of carrot and stick to persuade them to embrace technology and protect their businesses and their customers against the impact of financial crime.”