FCA WARNS OF POTENTIAL FINANCIAL CRIME RISKS LINKED TO AFGHANISTAN

Developments in Afghanistan have highlighted the continuing need for robust systems and controls that respond to changing risks, according to the UK’s Financial Conduct Authority (FCA). The regulator said that the country’s takeover by the Taliban and the withdrawal of international forces could impact patterns of financial activity when they assess risks related to particular customers and flows of funds. “We expect firms to consider the impact of these developments on their anti-money laundering policies and procedures in a risk-based manner, and to take the steps necessary to ensure they continue to meet their legal and regulatory anti-money laundering and reporting obligations,” the FCA said. The regulator also noted that regulated firms should continue to screen against the UK sanctions list, in particular the regime specific list for Afghanistan.