New UK financial-crime report coming into force from end 2016

New UK annual financial-crime data expected to drive UK regulatory supervision strategy

A new financial-crime related report (called ‘REP-CRIM’) was originally proposed in consultation during December 2015. The UK FCA has now issued its final requirements (see FCA PS16/19) concerning affected firms producing and electronically submitting this new data report which is to come into force from end 2016.

The requirement for these new reporting provisions will affect a broad number of types of firm with revenue of >£5m as at their accounting reference date with effect from 31 December 2016. But the FCA has concluded to initially exempt some types of firm-business on a prudent proportionality basis, including some general insurers and intermediaries as well as credit-unions.
Firms will have to prepare and submit their data using the GABRIEL system, ensuring their report data covers all business areas that are subject to the UK Money Laundering Regulations (MLR’s).

The UK conduct regulator’s prominent and continued interest in financial-crime risks management systems and controls reflects its robust supervision and management of financial-crime being intrinsically and directly linked to the FCA’s operational business and statutory objectives and the overall integrity of the UK financial system. The FCA intends to use this new and consistent form of data reporting to inform and influence its ongoing regulatory supervision and strategy in this area, whilst maintaining a closer understanding of practices and trends and potential intra/cross sector threats and risks. In this regard, he FCA is expected to publishing related aggregated data to share and promote best practices and effective but proportionate standards across the whole UK industry.
All firms affected by this new reporting requirement will need to ensure internal awareness and also their resources and systems are duly amended to accommodate this new obligation. However, with most regulated firms following a common accounting reference date of 31st December this will mean the first reports will largely fall due by mid-March 2017.