The UK's financial watchdog has urged bank leaders to follow all precautions to reduce the risk of financial crime on their platforms.
In a letter addressed to the heads of commercial banks, the Financial Conduct Authority (FCA) called on financial institutions to more closely monitor the transactions of customers who “conduct digital business activities or receive income from cryptocurrency types of trading. These clients can be not only crypto exchangers, but also private clients.
By classifying cryptocurrencies as “cryptoassets”, the FCA anticipates the potential for them to be “misused to facilitate illicit financial transactions.”
The FCA’s recommended measures include due diligence when dealing with key clients, as well as a full understanding of the nature of the client’s business, and the risks associated with that business. The watchdog urged banks to “ensure that existing regulatory rules adequately reflect the actual situation on the market. market.”
The observer also called on banks to develop their own experience in the cryptocurrency business through education and training of staff in order to “be able to quickly identify risky clients.”
It is noteworthy that the FCA does not recommend carefully analyzing the data of other clients. It also does not recommend developing experience in other areas of business.
As an example of a “high risk indicator,” the FCA indicates the use of a national digital currency by a client (often). They are used to circumvent international sanctions.) The first state-owned cryptocurrency, the Venezuelan Petro, was specifically designed to circumvent Western sanctions. US President Donald Trump recently issued an order prohibiting all residents of the country from sending or receiving this token.
According to the FCA, retail clients who invest large sums in ICOs are also “high-risk” clients, since they could easily lose their entire investment in a second if the coin placement goes wrong. fraud.
The FCA has previously issued a public warning to those dealing with these “high-risk speculative investments.”
According to ccn
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