FCA sets out conditions of review into treatment of politically exposed persons
More than 200 countries and jurisdictions have signed up to the standards set by the Financial Action Task Force.
Today (5 September), the regulator set out which issues it will consider as part of a review of financial firms' arrangements for dealing with Peps based in the UK.
The regulator first launched the investigation last month in the wake of former Brexit Party leader Nigel Farage alleging he had lost his bank account at Coutts, a private bank run by NatWest, due to his political views.
FCA begins investigation into bank's 'politically exposed persons' procedures
The FCA will submit its final report by the end of June 2024, within which it will consider how firms are applying the definition of Peps to individuals, and how they are conducting proportionate risk assessments of UK Peps, their family members and known close associates.
It will also see whether or not firms are applying enhanced due diligence and ongoing monitoring «proportionately and in line with risk», and look into how firms decide to reject or close accounts for Peps, their family members and known close associates.
Financial firms will also undergo scrutiny over whether they are effectively communicating with their Pep customers and, it will analyse if firms are keeping their PEP controls under review to ensure they remain appropriate.
FCA to begin de-banking probe
The FCA will take «prompt action» if any «significant deficiencies» are identified in the arrangements of any firm assessed, the regulator said.
Under legislation adopted by parliament, financial firms are required to do extra checks on political figures, their families and close associates.
More than 200 countries and jurisdictions have signed up to the standards set by the
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