- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Kyle Brasseur2023-09-05T15:23:00
The Financial Conduct Authority (FCA) announced the scope of its review into the treatment of U.K.-based politically exposed persons (PEPs), the latest development in response to the Nigel Farage “debanking” scandal.
The review “will look carefully at firms’ arrangements for dealing with PEPs based in the U.K.,” said the FCA in a press release Tuesday. The regulator on Aug. 15 issued a statement requesting PEPs share their experiences dealing with financial services firms.
Debanking has been a hot topic in the United Kingdom following the controversial decision by NatWest to close the accounts of Farage, a politician who said the move was made because his right-wing political views. The bank’s handling of the matter—which included its chief executive officer admitting to discussing details regarding Farage with a BBC reporter—earned it significant criticism among lawmakers. The CEO stepped down in July.
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An independent review into how NatWest handled the closure of politician Nigel Farage’s Coutts account uncovered potential regulatory breaches by the bank that are on the radar of the U.K. Financial Conduct Authority.
Insolvent credit broker London Capital & Finance dodged a “substantial financial penalty” from the U.K. Financial Conduct Authority regarding promotions it used to market minibonds to investors.
ADM Investor Services International was ordered to pay nearly £6.5 million (U.S. $7.9 million) by the U.K. Financial Conduct Authority for not timely addressing anti-money laundering systems and controls deficiencies first alleged by the regulator in 2014.
The U.S. Supreme Court extended the statute of limitations for businesses attempting to challenge some federal regulations, allowing regulated entities a longer timeline to appeal a decision.
The Supreme Court of the United States overturned a long-held precedent in which courts deferred to federal agencies in interpreting complex or ambiguous regulations–a decision that could make thousands of federal regulations more vulnerable to legal challenges.
Financial institutions would be required to conduct more thorough risk assessments on their anti-money laundering/countering the financing of terrorism programs under a new rule proposed by the Treasury Department’s Financial Crimes Enforcement Network.
