What is financial crime?
Financial crime can be defined in different ways. In the context of the services we provide, financial crime typically includes any criminal conduct related to money, financial services or markets, as well as reportable or criminal misconduct of a non-financial nature.
What are the key financial crime risk areas to be aware of?
Financial crime poses significant risks to businesses. Here are some key areas that businesses should be aware of:
- Money laundering, terrorist financing and proliferation financing
- Sanctions breaches
- Bribery & Corruption
- Fraud
- Tax evasion
- Cyber & data protection
- Insider dealing & market abuse
By implementing effective controls that both prioritise risk areas as well as comply with evolving regulations, businesses can enhance their performance and pursue profit responsibly for the benefit of their stakeholders and wider society.
What sectors are most affected by financial crime?
Financial crime can have significant impact on various sectors. However, there are some that are more vulnerable than others, including:
- Financial Services.
- Private sector (non-FS sectors).
- Public sector and not-for-profit.
- Professional services.
Financial crime regulatory developments: January
Regulators and law enforcement agencies focused heavily on crypto assets and sanctions this month. The FCA set out its new authorisation regime for UK crypto asset firms, amid OFSI enhancing its civil enforcement processes and issuing a penalty to a large bank for its business relationship with a Designated Person.
Rising financial crime risks
Payment and e-money firms are facing increasing pressure from regulators.
A New Era for Corporate Criminal Liability
The Economic Crime and Corporate Transparency Act 2023 (ECCTA) marks the most significant reform to corporate criminal liability in England and Wales in over a century. For businesses operating in the UK, these changes demand urgent attention and strategic reassessment of compliance frameworks.
Financial crime regulatory developments: December
The FCA made headlines by issuing its first censure of a professional body, fining a major UK building society, launching AI testing and consumer tools, and consulting on new crypto regulations. At the same time, government bodies updated compliance guidance, strengthened tax evasion reporting requirements, and unveiled the UK’s Anti Corruption Strategy 2025. The EU also added Russia to its high-risk...
Navigating Failure to Prevent Fraud compliance
The landscape of corporate accountability in the United Kingdom has fundamentally shifted with the introduction of the failure to prevent fraud offence under the Economic Crime and Corporate Transparency Act 2023. This landmark legislation came into force on 1 September 2025, creating a new corporate criminal offence that holds large organisations accountable when fraud is committed by their employees,...
Financial crime regulatory developments: October
October’s regulatory landscape reflects a strong push toward modernisation, enforcement, and global alignment. Key updates include FATF’s new asset recovery guidance and AI risk alerts, FCA’s reviews on financial crime controls and tokenisation, and UK Government-led reforms to AML supervision and sanctions frameworks. Together, these developments signal heightened scrutiny, innovation in financial...
Financial crime regulatory developments: September
In September, the UK and global authorities advanced financial crime efforts through new regulatory initiatives, enforcement actions, and strategic updates. Highlights include policy notes on amendments to UK Money Laundering Regulations, increased use of AI in fraud detection, FATF guidance on international cooperation, and the SFO’s first Unexplained Wealth Order.
Financial crime regulatory developments: August
August saw key financial crime updates, including proposed UK AML reforms, new FATF risk assessment tools, and guidance on AI-driven transaction monitoring. Regulators also flagged rising threats from money mules and impersonation scams, urging firms to strengthen controls and improve data sharing.
Financial crime regulatory developments: July
Key July highlights include substantial FCA fines and updated guidance on PEPs, the NCA’s publication of strategic priorities and a red alert on shadow fleet sanctions evasion, the UK Government’s release of the 2025 National ML/TF Risk Assessment and a cryptoasset threat assessment, and a reaffirmation of the risk-based approach to financial crime prevention from the Wolfsberg Group.
Financial crime regulatory developments: June
Key highlights include a suite of updates from the FATF targeting virtual assets and cross-border payments, the UK’s digital identity legislation progressing toward implementation, and the FCA’s launch of an AI sandbox to enable firms to safely explore the application of new technologies.
Financial crime regulatory developments: May
May saw key regulatory updates in the UK’s financial crime space, including new OFSI guidance for responding to requests for information and for high value dealers and art market participants. Meanwhile, early progress is emerging under the new mandatory reimbursement rules for APP fraud.
Financial crime regulatory developments: April
The government, FCA and law enforcement are investing in innovative ways to identify and prevent financial crime. From a £121 million investment in quantum technology to the FCA's introduction of a new AI live testing service, cutting-edge methods are being deployed to keep pace with emerging financial crime typologies.
Navigating new 'Failure to Prevent Fraud' guidance
Fraud continues to be a significant challenge for businesses in the UK, resulting in billions of pounds lost annually to fraudulent activities.
'Failure to Prevent Fraud' in the Public Sector
The UK Government has recently announced a new corporate criminal offence – the 'failure to prevent fraud' offence – within the Economic Crime and Corporate Transparency Act 2023.
National contacts
Luke Firmin Director - Financial Crime - London
