Written on 17/07/2023

The FCA emphasises to firms the importance of having sufficient Systems and Controls in place across the entire firm and its advisers.

For Anti-Money Laundering Regulations (AML) and Data Protection (DP), the potential risks involved in not having sufficient systems and controls in place is huge.

AML and DP procedures and controls are important and firms are expected to have robust systems and procedures in place. For AML, this is to help prevent money laundering and terrorist financing and for DP to ensure that personal data is handled responsibly and securely. The financial penalties and legal consequences of not doing so are severe.

To help firms identify their risks, IFAC have introduced two new audits for these areas. The audits focus specifically on each area to do a deep dive into processes and check that firms are complying with the rules and regulations and ensuring that the relevant systems and controls are in place.

So, why should a firm have a focused audit?

  • To ensure that the firm is complying with the laws and regulations
  • To establish any risks and ensure risk mitigation
  • To protect the financial system
  • To safeguard the firm’s reputation and protect customer trust
  • To avoid legal consequences and penalties
  • To improve internal systems and controls

Whilst the FCA do not explicitly require firms to undertake focused audits of this nature, it is generally best practice to ensure that a firm has a robust framework in place that includes ongoing monitoring, assessment and improvement of their practices.

Book your AML or DP Audit with us today and help protect your firm and your clients,


All news