Derek Patterson on small business investment in anti-money laundering

Following the UK Financial Conduct Authority (FCA)’s recent money laundering penalty against Starling Bank, the Institute of Financial Accountants highlighted three takeaways for small businesses in addressing their own sanctions and money laundering risks.  

FRA Partner Derek Patterson has been quoted emphasising the importance of investing in the right expertise (see extract below). Read the full article in the Financial Accountant.  

Derek Patterson, Partner at Forensic Risk Alliance, says the FCA has signalled previously that it will start to take action against firms with weak AML procedures: “Size is no excuse, and smaller companies should prioritise hiring experts who can fortify their organisation’s defences and play their part in upholding the integrity of the global financial system.”

An important step for small businesses is to review their procedures and implement controls to avoid sanctions. However, Patterson says smaller and startup businesses can struggle to attract the right expertise to build strong, effective AML systems.