Financial crime fight extends beyond headlines
Therese Chambers, FCA joint executive director of enforcement and market oversight, emphasized the crucial role of unseen prevention in combating financial crime. Speaking at the IBA Anti-Corruption Conference, she detailed how the regulator's efforts extend beyond high-profile enforcement cases.
The iceberg's hidden mass
FCA joint executive director Therese Chambers highlighted the dichotomy between high-profile enforcement actions and the 'quiet prevention of harm' in the fight against financial crime.
She referenced significant cases, such as a £44m fine for Nationwide's anti-money laundering failings and a ban for former Barclays CEO Jes Staley.
While these visible outcomes are crucial for accountability, Chambers emphasized the equal importance of less obvious work.
This includes daily market monitoring, reviewing financial promotions to remove misleading adverts, and collaborating with firms for positive customer outcomes.
She detailed an intervention where the FCA paused a life sciences company's fundraising prospectus, which resembled a pump-and-dump scheme.
This action successfully prevented potential investor harm without public headlines, showcasing the effectiveness of unseen regulatory intervention.
Outpacing the digital criminal
Chambers emphasized that financial crime is now faster, more complex, and widespread, accelerated by technology and AI.
She highlighted the growing imbalance where criminal threats are cheap, fast, and invisible, while traditional enforcement is expensive, slow, and highly visible.
To address this, the FCA is adapting its approach, shifting focus towards 'prevent, protect, and prepare' within its '4 Ps' framework.
This involves using the credible threat of enforcement for earlier intervention through supervisory tools, market oversight, and proactive detection, often in weeks rather than months.
The global nature of financial crime also demands a collective international response, with the FCA actively collaborating with bodies like IOSCO and various international regulators.