Introduction
In recent years, financial crime has climbed to the top of the Financial Conduct Authority's (FCA) agenda. The FCA has implemented a series of measures aimed at strengthening the integrity of financial markets and protecting consumers. The FCA's new five year strategy, prioritises fighting financial crime and is expected to increase enforcement actions, as the regulator seeks to deter misconduct and ensure compliance.
Over the last two years, the FCA has charged more people with criminal offences than in any previous years. As the regulator intensifies its efforts, both individuals and firms must remain vigilant and proactive in their compliance practices to navigate an increasingly stringent landscape.
FCA speeches
Recent speeches by FCA executives have underscored its focus on financial crime, driven by the recognition of its pervasive and evolving nature. The key themes arising include:
- Outcomes-based approach: The regulator has stressed the need for a targeted, outcomes-focused strategy to combat financial crime. This involves using data to spot outliers and issues, sharing insights on good and poor practices, and ensuring that firms uphold high standards from the outset.
- Technological innovation: The FCA is leveraging technology and data analytics in its efforts to combat financial crime. By scanning approximately 100,000 websites daily to identify potential scams, it amended or withdrew over 10,000 misleading adverts in 2023 – an increase of 17% from 2022. Additionally, the FCA hosted a three day investment fraud tech sprint, involving experts from regulatory, intelligence, and law enforcement agencies to design new ways to tackle this type of fraud.
The five year strategy proposes the use of technology to more effectively identify abnormal trading; indeed the FCA's focus on market abuse and insider dealing was reiterated in a recent speech delivered by Therese Chambers, the FCA's Joint Executive Director of Enforcement and Market Oversight (our article on this speech can be found here). Of particular focus is the prevalence of Organised Crime Groups (OCGs) which represent the most serious threat to markets – OCG activities account for around 25% of all Suspicious Transaction & Order Reports – and the FCA intend to draw on all tools at their disposal, including collaborating with agencies and partners both here and abroad, to disrupt these criminal activities.
The FCA also wants to support regulated firms in adopting new technologies to enhance their anti-crime systems while unlocking economic growth, acknowledging the crucial role these firms play as a frontline defence.
- Collaboration and partnership: The FCA has emphasised its increased focus on working with industry partners, law enforcement, and international counterparts to share intelligence and coordinate responses to financial crime, particularly given the cross-border nature of many financial crimes. Its aim is to achieve a global financial system with an effective and aligned set of international standards and policies to help combat financial crime.
- Enforcement action: The FCA has stressed that enforcement action should be timely and visible to serve as an effective deterrent. It is focused on speeding up investigations and making enforcement more assertive. By 2030, the FCA hopes to report improvements in market cleanliness and a reduction in investment fraud and authorised push payment fraud cases.
Recent enforcement action
The FCA has increased criminal enforcement actions against individuals and firms, bringing to light ongoing issues with inadequate financial crime controls and the misuse of financial services.
In March 2025, the FCA, working with the City of London Police, arrested four individuals suspected of fraud and money laundering. This collaboration underscores the FCA's strategy of partnering with law enforcement to tackle financial crime.
Following this, in April 2025, the FCA charged John Burford with operating an unauthorised business and misleading investors, allegedly defrauding over 100 investors of more than £1 million. The FCA reached a charging decision within 23 months, a vast improvement over the average 42 months for cases closed in 2023/24. The case reflects the FCA's commitment to speeding up investigations as part of its enforcement strategy.
Additionally, the FCA has imposed significant fines on firms such as Metro Bank and Starling Bank for failing to maintain robust anti-money laundering controls, with penalties of £16 million and £29 million, respectively. These actions highlight the FCA's emphasis on ensuring financial institutions have effective systems to detect and prevent financial crime, aligning with their strategy to support firms in adopting new technologies and enhancing anti-crime systems.
A recurring theme in these enforcement actions is the failure of firms to adapt their financial crime controls to match their growth and the evolving risk landscape, reinforcing the FCA's focus on using technology and collaboration to address these challenges effectively.
Conclusion
The FCA's intensified focus on financial crime underscores its commitment to safeguarding the integrity of the UK's financial system. Through increased enforcement actions, collaboration with law enforcement, and the strategic use of technology, the FCA aims to address the persistent challenges posed by financial crime.
By putting pressure on regulated firms to enhance their anti-crime systems and empowering consumers with the necessary tools and information, the FCA seeks to create a more resilient financial environment. However, as the regulatory landscape becomes more stringent, firms and individuals must remain proactive in adapting their approach to evolving risks to ensure they do not get caught in the FCA's enforcement net, which is being cast wide.
The FCA's focus means that it is devoting significantly more resources to criminal prosecutions – particularly where there is no other practical action the FCA can take (for example in the case of many unregulated individuals). Regulated firms which fail to meet their anti-financial crime obligations (including in relation to money laundering, market abuse, fraud, sanctions, bribery and corruption) can face a menu of possible actions by the regulator, ranging from criminal prosecutions (for example NatWest's conviction for failing to comply with money laundering regulations), through to regulatory penalties or supervisory action to impose requirements which prevent firms taking on new customers.