Rob Gruppetta has spoken on FCA’s views on the use of innovation, data and algorithms to help it in its supervision of, and approach to, financial crime prevention.
He said that FCA is always open to innovation, but that it should not be approached without scrutiny. He highlighted FCA’s TechSprints (or “hackathons”), one of which focussed on AML. He noted that financial crime does not lend itself easily to statistical analysis since it is always evolving, but that FCA can and does use algorithms and models alongside its existing approach.
He spoke of the results from FCA’s first review of the financial crime returns, and how FCA has used it, with other data it holds about firms, to paint a detailed picture of what a good firm looks like