FCA outlines new measures for banks to tackle money laundering via the Post Office
The UK’s Financial Conduct Authority (FCA) has outlined a new set of measures designed to reduce the risk of money laundering via the Post Office.
FCA outlines AML measures for Post Office banking
Working with the National Economic Crime Centre (NECC), industry members and the government, the FCA says it has tightened controls while still maintaining the Post Office’s role as a hub for everyday banking.
According to the NECC, “hundreds of millions” of pounds are laundered annually using cash deposits at the Post Office.
Measures set out for banks by the FCA include moving towards card-based transactions and away from paying-in slips; educating staff around suspicious patterns of behaviour; enhancing monitoring capabilities; reducing cash deposit limits below the existing £20,000; cutting the time taken to submit Suspicious Activity Reports to the National Crime Agency (NCA); and improving intelligence sharing protocols.
The FCA expects banks and the Post Office to keep their controls under review to ensure they are proportionate, as well as use data to update measures as money laundering risks evolve.
FCA executive director of consumers and competition Sheldon Mills says the regulator has balanced the need for “vital cash banking services” at the Post Office while addressing gaps that criminals can exploit.
FCA research found 6% of adults in the UK used cash to pay for everything over the 12 months from May 2021, with this figure increasing (9%) for those in vulnerable circumstances.
