FCA Reviews Money Laundering Defences of Brokers

The review focused on wholesale brokers and was informed by engagement with a range of market actors.

Key findings from the review include:

• Underestimation of the ML risks brokers are exposed to;
• Overreliance on due diligence checks being conducted by other participants in the transaction chain;
• Limited information sharing between market participants; and
• Insufficient knowledge of the Money Laundering Through the Markets (MLTM) Suspicious Activity Reports (SAR) glossary code as highlighted by other reviews.

✅ Brokers regulated by the FCA should review their due diligence frameworks are comprehensive and robust in line with the expectations of the regulator.