Beyond MI

ADMISI Fined £6,470,600 by FCA The Financial Conduct Authority (FCA) imposed a £6,470,600 fine on ADM Investor Services International Limited (ADMISI) for failing to establish required AML systems and controls from September 2014 to October 2016, which also breached FCA Principle 3. This exposed ADMISI to the potential risk of being exploited for financial crime and money laundering activities. Link - https://lnkd.in/eZ3sNzTN One notable failing was ADMISI's failure to prepare MLRO reports, a mandatory requirement (SYSC 6.3.7G), which evaluates the effectiveness of AML/CTF systems and controls. Not having an appropriate MLRO Report presented to the Board at least annually can result in heightened financial crime compliance risks, limited oversight, ineffective controls, and missed opportunities for improvement, ultimately jeopardising a firm's ability to combat financial crime and meet regulatory requirements. Several of the failures identified in this enforcement case, including inaccurate PEP records, inadequate EDD processes, and insufficient AML training records, could have been addressed through regular, tailored risk reporting. Such reporting provides valuable insights into the firm's inherent risk exposure and the effectiveness of its control environment, allowing for timely corrective actions. Beyond MI has extensive experience in creating comprehensive annual MLRO reports and suites of tailored financial crime risk reporting, aligning with regulatory standards and industry best practices. Contact us today to find out more.   #RegulatoryEnforcement #FCA #MLRO #Compliance #AML