Speaking at the regulator’s financial crime conference, he said: “I’ve said before that separating financial services from national security is outdated and dangerous. This is a question of fundamental economic and national security. No single organisation can see that threat clearly or disrupt it effectively alone.”
‘Dirty money’
Rathi (pictured) said organised criminal networks were becoming “more technologically enabled” and were exploiting gaps between firms, regulators and law enforcement.
“Organised criminal groups [are] running professional networks that operate across borders,” he said, before later adding: “The reality is that our financial system is part of that supply chain – exploited by criminals moving dirty money through complex layers designed to stay hidden.”
Rathi said the ways in which financial services, technology and infrastructure providers, regulators, government, police and consumer groups had traditionally tackled financial crime was no longer fit for the environment we live in.
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He indicated the regulator wants the post-EU payments regime to mirror the wider financial services framework across authorisation, supervision and enforcement.
The FCA also confirmed it will begin sharing more intelligence with law enforcement agencies from June, including more than 5,000 records through the Police National Database.
Rathi said the regulator was increasingly using data analytics and artificial intelligence (AI)-led detection tools to identify potential money laundering risks earlier.
However, he acknowledged regulators and firms could not “defend everything equally” and would need to prioritise resources as financial crime threats grow in scale and sophistication.
