Associations fear regulatory conflicts in FSA’s DP22 proposals
London -- Trade associations responding to the UK Financial Services Authority’s (FSA) Discussion paper 22: Reducing money laundering risk -- Know your customer and anti-money laundering monitoring said they fear that the regulator’s proposed risk-based approach may conflict with AML rules already in existence from other government bodies.
The British Bankers’ Association, responding in early February to DP22, said it fears that the negligence or objective test of an effective AML system in the Proceeds of Crime Act may "be a legal obstacle to acceptance of a risk-based approach." Specifically, firms fear that "if it is argued with hindsight that money laundering was not prevented as a result of a firms’ assessment of risk which it had made in good faith, and the firm is thereby culpable, firms are unlikely to embrace a risk-based
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