On 2 April 2025, the Financial Conduct Authority (FCA) updated its guidance on cash-based money laundering, focusing on reducing illicit activities through cash deposits, particularly those made via the Post Office. ?Global Regulation Tomorrow+2financialinstitutionsnews.com+2FCA+2
Key Highlights
- Enhanced Controls: The FCA emphasized the need for firms to strengthen controls over cash deposits, including implementing robust transaction monitoring systems and reducing cash deposit limits to mitigate money laundering risks. ?FCA+1Global Regulation Tomorrow+1
- Multi-Firm Review: A proactive multi-firm review is planned for the 2025/26 financial year to assess the effectiveness of firms’ controls in preventing cash-based money laundering. ?Global Regulation Tomorrow+1financialinstitutionsnews.com+1
- Access to Cash: The FCA acknowledged the importance of maintaining access to cash for legitimate customers while ensuring that controls are in place to prevent misuse of cash deposit services. ?FCA+1Global Regulation Tomorrow+1
These updates are part of the FCA’s ongoing efforts to combat financial crime and protect the integrity of the UK financial system.