This morning, the FCA announced that challenger banks need to improve how they assess financial crime risk. Some failed to adequately check their customers’ income and occupation. In some instances, challenger banks did not have financial crime risk assessments in place for their customers at all.
In light of this, Colum Lyons, CEO at ID-Pal, the identity verification company, comments on what needs to happen to address this problem as a matter of urgency:
Colum Lyons, CEO at ID-Pal, the identity verification company, comments on the FCA’s review into challenger banks’ financial crime controls today:
“The challenges highlighted in the FCA’s review are not unique to challenger banks, and all financial services companies should have rigorous processes in place to protect their business and their customers from financial crime. The regulator is being very vocal that scrutiny across financial services is going to increase in the coming months and years, so it’s vital that companies get their controls in place to avoid serious monetary and reputational damage.
“The only way to do that is to adopt proper identity checks, so it’s promising that the FCA is recognising the benefits of digital ID&V services as good practice for businesses to identify and verify customers quickly. Customers want speed and efficiency, and these tools help financial services meet the demands without cutting corners or letting compliance slip.”
