Introduction: 

The Financial Conduct Authority (FCA) has unveiled its ambitious five-year strategy, marking a significant shift in tone and objectives compared to its previous three-year plan. This new strategy underscores the FCA’s commitment to deepening trust, rebalancing risk, and fostering growth while maintaining its focus on tackling financial crime—a top priority for the regulator. 

The evolution of FCA’s approach 

Since the launch of its 2022-2025 strategy, the FCA has made notable progress in reducing financial crime. Key achievements include a 40% drop in fraud losses in 2023 and enhanced collaboration with firms and agencies to combat illegal promotions and scams. Building on these successes, the FCA’s new five-year plan aims to address emerging challenges such as technological advancements, global instability, and demographic shifts.

Key priorities for financial crime prevention 

The FCA’s updated strategy identifies four critical areas of focus to strengthen efforts against financial crime: 

• Data and Technology: Firms are urged to leverage advanced systems and controls to counter increasingly sophisticated criminal activities.

• Collaboration: Greater cooperation between firms, regulators, and law enforcement is essential for effective crime prevention.

• Consumer Awareness: Educating consumers about scams and fraud is vital for reducing victimisation.

• Metrics: Firms must measure the effectiveness of their anti-crime initiatives to ensure continuous improvement.

Specific goals for 2025 

In its latest business plan, the FCA outlines specific objectives aimed at mitigating financial harm: 

• Slowing the growth of investment fraud and authorised push payment (APP) scams. 

• Reducing money laundering incidents within regulated firms. 

• Enhancing supervisory effectiveness through professional oversight bodies.

A collaborative effort 

The FCA acknowledges that combating financial crime requires collective action. It promises to support firms committed to robust anti-crime measures while enforcing penalties against those who fail to comply with regulatory standards. Additionally, the regulator plans to adapt its strategies to address geopolitical instability and global competition effectively.

Conclusion 

The FCA’s five-year strategy represents a transformative approach to financial crime prevention. By prioritising innovation, collaboration, and consumer protection, the regulator aims to create a safer financial ecosystem that fosters trust and growth.