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SUP 16.23 Annual Financial Crime Report

Application

SUP 16.23.1RRP

1This section applies to all firms (a) subject to the Money Laundering Regulations and (b) listed in the table below, except for4:

  1. (1)

    a credit union;

  2. (2)

    a P2P platform operator;

  3. (3)

    an authorised professional firm; or4

  4. (4)

    a firm with limited permissions only.4

  5. (5)

    [deleted]4

SUP 16.23.2RRP

Table: Firms to which SUP 16.23.1R applies (subject to the exclusions in SUP 16.23.1R).4

a UK bank;

a building society;

2

a non-UK bank;2

a mortgage lender;

a mortgage administrator; or

a firm offering life and annuity insurance products.

4a firm that has permission to carry on one or more of the following activities:

advising on investments, provided that during the relevant financial year the firm:

(i)

held client money under CASS 5 (Client money: insurance distribution activity) and/or CASS 7 (Client money rules); and/or

(ii)

held safe custody assets under CASS 6 (Custody rules);

arranging (bringing about deals) in investments, provided that during the relevant financial year the firm:

(i)

arranging (bringing about deals) in investments, provided that during the relevant financial year the firm:

(ii)

held safe custody assets under CASS 6 (Custody rules);

dealing in investments as agent;

dealing in investments as principal;

assisting in the administration and performance of a contract of insurance in relation to non-investment insurance contracts;

managing investments;

establishing, operating or winding up a collective investment scheme;

establishing, operating or winding up a personal pension scheme;

establishing, operating or winding up a stakeholder pension scheme;

managing a UK UCITS;

managing an AIF;

safeguarding and administering investments;

acting as trustee or depositary of a UK UCITS;

acting as trustee or depositary of an AIF;

operating a multilateral trading facility; and/or

operating an organised trading facility.

a firm that has reported total revenue of £5 million or more as at its last accounting reference date and has permission to carry on one or more of the following activities:

advising on investments;

arranging (bringing about deals) in investments;

advising on pension transfers and pension opt-outs; and

credit-related regulated activity.

Purpose

SUP 16.23.3GRP
  1. (1)

    The purpose of this section is to ensure that the FCA receives regular and comprehensive information about the firm’s systems and controls in preventing financial crime.

  2. (2)

    The purpose of collecting the data in the Annual Financial Crime Report is to assist the FCA in assessing the nature of financial crime risks within the financial services industry.

Requirement to submit the Annual Financial Crime Report

SUP 16.23.4RRP
  1. (1)

    A firm must submit the Annual Financial Crime Report to the FCA annually in respect of its financial year ending on its latest accounting reference date.

  2. (2)

    A firm is only required to submit data that relates to the parts of its business subject to the Money Laundering Regulations.

SUP 16.23.5GRP
  1. (1)

    If a group includes more than one firm, a single Annual Financial Crime Report may be submitted, and so satisfy the requirements of all firms in the group.

  2. (2)

    Such a report should contain the information required from all the relevant firms, meet all relevant due dates, indicate all the firms on whose behalf it is submitted and give their firm reference numbers (FRNs). The obligation to report under SUP 16.23.4R remains with the individual firm.

Method for submitting the Annual Financial Crime Report

SUP 16.23.6RRP

A firm must submit the Annual Financial Crime Report in the form specified in SUP 16 Annex 42AR using the appropriate online systems accessible from the FCA’s website.

Time period for firms submitting their Annual Financial Crime Report

SUP 16.23.7RRP

A firm must submit the Annual Financial Crime Report within 60 business days of the firm’s accounting reference date.