FCA launches review of treatment of Politically Exposed Persons

Summary:

The Financial Conduct Authority (FCA) has launched a review to examine the way financial services firms in the UK handle Politically Exposed Persons (PEPs) based in the UK. The review will assess firms' arrangements for identifying, assessing, and monitoring PEPs, their family members, and close associates, and consider whether they are applying proportionate risk assessments and enhanced due diligence measures. The review will also look at the communication and monitoring of PEP accounts and whether firms are keeping their controls under review. The goal is to ensure that the rules are implemented proportionately and do not create unnecessary barriers for public servants and their families. The review will report by the end of June 2024, and the FCA will take prompt action if significant deficiencies are identified.