PS21/4: Extension of Annual Financial Crime Reporting Obligation

CP20/17
24/08/2020
Consultation closed
23/11/2020
Policy Statement
31/03/2021
31/03/2021

This policy statement summarises our proposal to increase the number of firms who need to submit the annual financial crime report, which we refer to as ‘REP-CRIM’.

Read PS21/4

What we are changing

Following the consultation in August 2020, we are increasing the number of firms that need to submit a REP-CRIM return from approximately 2,500 to approximately 7,000. We based our assessment of which firms this extension will apply on our understanding of the potential money laundering risks.

This policy statement proposes that additional firms and cryptoasset businesses should be brought into scope of the return based on their business activities and the potential money laundering risks.

Who this applies to

Firms we supervise under the Money Laundering Regulations (MLRs) such as:

  • banks
  • building societies
  • businesses undertaking MiFID related activities
  • cryptoasset businesses

Background

REP-CRIM provides us information on a range of indicators that reflect the potential money laundering risks of firms’ based on their regulated activity and helps us to supervise firms. In our 2020/21 Business Plan, we said we would consider extending the REP-CRIM reporting obligation to more firms. Reviewing our policy allows us to keep up to date with changes in legislation such as cryptoasset businesses now falling within the scope of the MLRs.

We have statutory objectives under the Financial Services and Markets Act to protect and enhancing the integrity of the UK financial system.

Next Steps

Firms that will be brought into the scope of REP-CRIM for the first time will need to be prepared to submit the return when it is due.

Page updates

24/11/2020: Information changed consultation closed