FCA steps up scrutiny of Annex 1 Firms, citing financial crime risks linked to over-reliance on third parties and parent-company controls, generic procedures, and complex lending structures such as SPVs

FCA tightens its oversight for unregulated lenders, safe-custody providers, money brokers and financial leasing companies because of concerns that some may facilitate financial crime. The FCA has found over-reliance on parent-company AML controls and generic procedures, rather than controls tailored to each firm’s own risks and operations, as well as risks arising from complex lending structures such as SPVs….