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Regulation Update: FCA Review Concludes that Financial Services Firms Need to do More to Ensure Domestic PEPs are Treated Fairly.

Published by FullCircl

The document discusses the Financial Conduct Authority's (FCA) review of the treatment of Politically Exposed Persons (PEPs) by financial services firms in the UK. The FCA identified shortcomings in how firms handle domestic PEPs, such as ineffective monitoring, inadequate risk assessments, and poor communication. The FCA advises firms to revise their PEP policies, improve staff training, and adopt a risk-based approach that treats domestic PEPs as lower risk than foreign PEPs. The document also highlights how FullCircl’s AML software can help firms comply with these updated requirements, ensuring proportionate and compliant treatment of PEPs.

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