FCA’s ‘zero tolerance’ on KYC fosters de-risking – BBA

Media and UK regulator’s approach to financial crime criticised at Commonwealth discussion

De-risking is heavily affecting developing countries in the Commonwealth

Tougher rules such as the Senior Managers Regime, adverse publicity and a “zero-tolerance approach” from the UK Financial Conduct Authority (FCA) are causing banks to avoid client relationships seen as risky from a compliance standpoint, a policy director at the British Bankers’ Association (BBA) told an event held in London yesterday (August 10).

The comments came during a panel discussion at the Commonwealth Secretariat devoted to the topic of ‘de-risking’ – the generalised retreat of banks