FCA highlights risks when dealing with unregulated lenders
We are reminding regulated firms they need to undertake proper checks when dealing with unregulated lenders, safe custody providers, money brokers and financial leasing companies – also known as 'Ann…
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The useful update
- We are reminding regulated firms they need to undertake proper checks when dealing with unregulated lenders, safe custody providers, money brokers and financial leasing companies – also known as 'Ann…
- FCA highlights risks when dealing with unregulated lenders
The stakes
- This regime is based on registration and is different from the authorisation regime under the Financial Services and Markets Act
- This would include seeking direct confirmation from the firm of their registration status, conducting independent checks of the information they provide, and understanding and managing any risks, for instance those detailed in the 2025 National Risk Assessment
The next check
- If the story affects a decision, open the original FCA report and the relevant official page before relying on local prices or timing
Where this came from
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Original report FCA highlights risks when dealing with unregulated lenders
Publisher: FCA · fca.org.uk
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The short version
We are reminding regulated firms they need to undertake proper checks when dealing with unregulated lenders, safe custody providers, money brokers and financial leasing companies – also known as 'Ann…
There are around 1,200 of these firms registered with us for solely anti-money laundering purposes. Our powers are currently limited to looking at how these firms are meeting their anti-money laundering obligations and they are not subject to our wider rulebook
What happened
- We are reminding regulated firms they need to undertake proper checks when dealing with unregulated lenders, safe custody providers, money brokers and financial leasing companies – also known as 'Ann…
- FCA highlights risks when dealing with unregulated lenders
- We are reminding regulated firms they need to undertake proper checks when dealing with unregulated lenders, safe custody providers, money brokers and financial leasing companies – also known as 'Annex 1' firms
- There are around 1,200 of these firms registered with us for solely anti-money laundering purposes
- Our powers are currently limited to looking at how these firms are meeting their anti-money laundering obligations and they are not subject to our wider rulebook
Why this matters
- This regime is based on registration and is different from the authorisation regime under the Financial Services and Markets Act
- This would include seeking direct confirmation from the firm of their registration status, conducting independent checks of the information they provide, and understanding and managing any risks, for instance those detailed in the 2025 National Risk Assessment
- We raised concerns about anti-money laundering standards directly with the Annex 1 businesses in a letter to CEOs in 2024
- The practical value is the source trail: FCA is the place to check before acting on prices, dates, availability, or local implications
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