Clifford Chance

FSA review of management of AML risk by Banks

7 July 2011

The FSA's thematic review into how money laundering risk is managed by banks, published on 22 June 2011, generally concludes that there are serious weaknesses common to many banks in their AML systems and controls for managing higher-risk business relationships and situations. Commentary from the FSA notes 'troubling failings' in this area, and that many banks demonstrate weaknesses similar to those identified in the review of banks' handling of Abacha funds back in 2001. The FSA has indicated that the report produced is the product of a style of intensive, intrusive supervision that will be carried into the new Financial Conduct Authority, one of the two new agencies taking over from the FSA in early 2013.

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