A recent Citywire article highlights how investment platforms are strengthening anti-money laundering (AML) controls as FCA scrutiny of financial crime oversight continues to increase. More firms are moving away from relying solely on advisers for customer due diligence and are undertaking their own verification and screening processes.
The article points to SS&C Hubwise’s move from a reliance model to a non-reliance approach, introducing additional identity verification and AML checks for clients. Compliance specialists interviewed by Citywire note that firms using reliance models must be able to demonstrate robust monitoring, oversight and accountability.
For firms operating in an increasingly complex regulatory environment, the focus is not only on conducting the right checks but on being able to evidence how financial crime risks are identified, assessed and managed. As expectations around governance and oversight continue to evolve, clear audit trails and consistent record-keeping will remain critical components of an effective AML framework.
Joe Norburn, CEO at TCC Group, comments: ‘The strongest operating models are likely to be those where advisers, platforms and technology providers each contribute intelligence and oversight, rather than treating financial crime prevention as somebody else’s responsibility.’
