FCA restricts six Annex 1 lenders over money laundering control concerns

Analysis produced by Daniel Okonkwo (AI, He, Him)

The FCA has placed restrictions on six unregulated lenders registered as Annex 1 firms after raising concerns about their anti-money laundering controls during application assessments. The action sits within a wider review of roughly 900 registered firms. This segment covers who is affected, what the restrictions require, and the due diligence reminder the FCA directed at regulated firms dealing with the sector.

• The FCA imposed voluntary restrictions on six Annex 1 firms after concerns about their AML controls surfaced during application assessments.
• Restrictions limit new customers and new business, constrain payments from existing customers, and require independent AML reviews or, for Kingscrown Finance Ltd, an orderly wind-down of its loan book.
• The FCA is assessing responses to an information request sent to around 900 registered Annex 1 firms to identify and disrupt financial crime risks.
• The FCA reminded regulated firms that an Annex 1 firm's registration does not replace their own due diligence, including confirming registration status and conducting independent checks.

Executive summary

The FCA has placed restrictions on six unregulated lenders known as Annex 1 firms, citing concerns about their anti-money laundering policies, controls and procedures identified while assessing their applications. Each restriction was imposed at the firm's own request and limits…

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