FCA anti-money laundering spot checks on hedge funds

It has been reported that the FCA are to conduct anti-money laundering spot checks on certain hedge fund managers in London in late March or early April 2019.

It has been reported that, on 28 February 2019, the FCA sent letters to senior executives of certain hedge fund managers in London. The letters warned of the FCA’s plan to send staff into their offices in late March or early April to assess the anti-money laundering systems and controls that are in place.

This should serve as a reminder to all managers, regardless of whether or not they have received a letter from the FCA, of the importance of anti-money laundering systems and controls. Given the FCA’s focus, it would be prudent for managers to take the opportunity to review the financial crime risks of their businesses, ensure that anti-money laundering policies and procedures are up to date and reflect current regulation, and to confirm that systems and controls are sufficient and function as intended.

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