Shorter Reads

Lawyers react as FCA promises ‘prompt action’ over politically exposed persons review

Nigel Brahams quoted in International Investment.

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Published 8 September 2023

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Nigel Brahams, Partner and Head of Financial Services has been quoted in International Investment following the launch of the politically exposed persons review leading to the FCA’s promise of ‘prompt action’.

Nigel commented:

“The FATF Guidance includes the wording: “These requirements are preventive (not criminal) in nature, and should not be interpreted as meaning that all PEPs are involved in criminal activity”.

“However, such is the concern amongst banks and other firms which need to comply with the rules, that they are widely interpreted and there seems to be a fallback position that anyone who has had any political connections at any time in their career is automatically under suspicion. When that person has more extreme views (i.e. Nigel Farage) the suspicions increase.

“In reality, my view is that firms need to take a holistic view of the actual risk of money laundering from a technocratic perspective and act proportionately. The rules do not need to change but it would certainly be helpful to have some better guidance as to how they should be interpreted to avoid safety first overreach and political anxiety amongst financial institutions.”

The full article can be found here. (Requires subscription)

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Shorter Reads

Lawyers react as FCA promises ‘prompt action’ over politically exposed persons review

Nigel Brahams quoted in International Investment.

Published 8 September 2023

Associated sectors / services

Authors

Nigel Brahams, Partner and Head of Financial Services has been quoted in International Investment following the launch of the politically exposed persons review leading to the FCA’s promise of ‘prompt action’.

Nigel commented:

“The FATF Guidance includes the wording: “These requirements are preventive (not criminal) in nature, and should not be interpreted as meaning that all PEPs are involved in criminal activity”.

“However, such is the concern amongst banks and other firms which need to comply with the rules, that they are widely interpreted and there seems to be a fallback position that anyone who has had any political connections at any time in their career is automatically under suspicion. When that person has more extreme views (i.e. Nigel Farage) the suspicions increase.

“In reality, my view is that firms need to take a holistic view of the actual risk of money laundering from a technocratic perspective and act proportionately. The rules do not need to change but it would certainly be helpful to have some better guidance as to how they should be interpreted to avoid safety first overreach and political anxiety amongst financial institutions.”

The full article can be found here. (Requires subscription)

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