The FCA has this week shared the key findings of their review of payment account providers' systems and controls against money mule activity, and outlined their expectations around how firms manage the risks of money mule accounts.
Fraud currently accounts for 40% of all crime [Office for National Statistics], and the ease with which fraudsters cash out the proceeds through mule accounts continues to be a problem. [A money mule is someone who is recruited by criminals to move illegally obtained money]
The FCA's report covers all aspects of firms' response to money mules, including controls at onboarding, monitoring and reporting, and sets out examples of good practice and areas for improvement.
Read the FCA's publication here: Proceeds of fraud - Detecting and preventing money mules | FCA
