Showing financial crime the red card

Financial crime, trust and growth

Financial crime is still too often seen as a lesser offence. A small-scale scam here, a phishing email there. Non-violent, technical, almost victimless.

After more than 30 years in national security and law enforcement, I can tell you that’s a dangerous misunderstanding.

I’ve seen up close how it directly fuels some of the most serious crime: human trafficking, terrorism, hostile state activity.

And financial crime doesn’t just steal money – it also steals confidence.  

Research by Lloyds Banking Group found that nearly 40% of fraud victims had lost confidence in online platforms.

When people lose money to fraud, they understandably become more cautious. They lose trust in the system.

And that has consequences, because trust is the foundation of growth.

Without it, fewer people invest. Innovation slows and markets suffer. Capital doesn’t flow where it’s needed.

So if we want a confident, competitive economy, tackling financial crime isn’t optional – it’s a prerequisite for growth.

It’s how we keep the game clean and attract new players.

Making progress

The good news is that the UK has real strengths in our arsenal: world-class institutions, deep intelligence capabilities, strong legal powers and healthy public-private partnerships.

And we’re using them.

Fighting financial crime is one of the FCA's 4 strategic priorities.

Last financial year, we issued 37 Final Notices, secured 5 convictions, imposed fines of over £186m, and brought charges against 19 defendants.  

In the last 6 months alone, we’ve secured convictions against 6 individuals for fraud and insider dealing, and issued sizeable fines where firms’ anti-money laundering (AML) systems and controls were clearly inadequate (for example, Monzo and Barclays) - enforcement action that sends important signals to criminals and the market around what to expect.

APP fraud – one of the more common and distressing scams - fell by 20% last year to the lowest level since 2020. Showing the progress that’s been made across the system to boost controls, invest in smarter detection, and increase consumer awareness.

Mandatory reimbursement, introduced last October, is making a difference too.  

In the first 3 months, 86% of money lost to APP scams was returned – compared to 68% in the previous year. Putting £27 million back in people’s pockets.

And with claims being resolved faster - 84% within 5 working days – it’s helping build that all-important trust in firms and the system.

Playing on the front foot: detection and disruption

This is promising progress, but we have plenty more to do.  

Fraud remains a major issue, costing our economy billions. It’s the crime UK citizens are most likely to suffer - making up 44% of all recorded crime in England and Wales - and it’s on an upward trajectory.

But it’s not just about fraud.  

Money laundering continues to pose a significant threat. The NCA’s National Strategic Assessment (PDF) estimates over £100 billion was laundered through the UK last year.  

And we are increasingly concerned by the levels of organised crime activity within the financial sector.

So we have to stay on the front foot.

Culturally, it’s about a more proactive approach to detection.  

It’s simple: the best way to tackle financial crime is to stop it happening in the first place.

You don’t win matches by sitting back and waiting for the ball to come to you. You press high and anticipate early to shut down attacks.

That’s why in 2024, the FCA took down more than 50 apps, over 1,600 websites and almost 20,000 non-compliant financial promotions. Blocking fraud at source.

And on systems, we must use technology to our advantage.

Criminals will move around to exploit the weakest firms and sectors. So sharing data and intelligence is vital to stay one step ahead.  

The NECC’s Data Fusion Project is a great example. Working together with industry to link bank transaction data with crime intelligence, to identify and disrupt the organised criminals operating within the financial sector.  

But we need more.  

We support the successful implementation of the ECCTA (Economic Crime and Corporate Transparency Act), which promotes better information sharing between firms on economic crimes.

At the same time, we must not be afraid to embrace new tools and approaches. Our synthetic data project with industry partners is one example - using realistic, privacy-safe data to help firms build and test better AML systems.  

And we will be launching an AML Synthetic Data sprint later this year, to collaborate with firms on new ways to detect money laundering. 

Teamwork

We’ve moved on from the stereotype of lone chancers plotting small-time cons from their spare room.

These days, we are often up against agile, well-funded, sophisticated networks of financial criminals.  

So partnership matters more than ever – across sectors, agencies and borders. We have a common enemy – the criminal!

The FCA occupies a unique position in the UK system: we are both a regulator and a law enforcement agency.  

A foot in both camps gives us greater access, and it's important that we use that to join up other parts of the system.  

We are part of the Joint Fraud Taskforce, and under the Economic Crime Plan 2, we have worked with partners to agree the UK’s first set of ‘cross system’ economic crime priorities.

A significant step forward in aligning public and private sector efforts to tackle the most serious organised and financial crime threats.

We have also placed FCA staff in the NCA – helping to share intelligence, align responses and combat economic crime more effectively.

Collaboration is not limited to our domestic partners.

We led international efforts, coordinating with 8 other regulators around the globe, to crack down on rogue ‘finfluencers’ - social media personalities who were illegally promoting financial products and advice.  

Action that resulted in multiple arrests and criminal proceedings.

I’ve just recently visited the US where I met with law enforcement agencies, including Homeland Security Investigations, the FBI and wider Department of Justice, and we will continue to strengthen global ties that can help us act faster across borders.

System prioritisation: the right game plan

So there is a positive pattern: our system becoming more joined up, more focused.  

But we have to be realistic. Resources aren’t infinite.  

That means looking at the system in the round…

Asking bigger questions and making choices on system prioritisation…

Focusing effort where it will have the greatest impact, and dialling back where returns are low.  

Risk at the gateway is a key lever and we’re taking a purposeful and risk-based approach.  

We have been rigorous in our approach to crypto AML registration, for example, and will continue to uphold high standards where risks demand it.  

Smarter supervision is also essential.

More outcomes-focused, more collaborative, and more proportionate for firms demonstrably seeking to do the right thing.  

But we can’t do it alone.

We want to forge a new relationship with industry – one grounded in trust, open dialogue and partnership.

We are open to your feedback and ideas.

That doesn’t mean compromising on the quality of our regulation. Or diluting the high standards that are a key selling point of the UK financial sector.

But by working more collaboratively with industry and drawing on your expertise, we can better identify the biggest risks in markets and respond faster.