Peer to Peer Lending, Crowd-Funding, ICOs and CryptoAssets

The UK's FinTech (financial technology) sector has snowballed over the past few years. Generally taken to mean the application of new technologies to financial services, FinTech ranges from mobile payments to "Robo-advice" - and also includes crowdfunding and peer-to-peer lending.

Crowdfunding, Peer-to-Peer Lending, Cryptocurrency and Initial-Coin-Offerings, in particular, have recently received attention as a way of raising money for projects - for example, a start-up fashion business or a documentary film. In some cases, the return isn't financial - with people receiving anything from a pair of handmade shoes to mention in the credits of the movie they're funding.

On the other hand, if people are making an investment in business for a financial return, this will generally be regulated by the Financial Conduct Authority (FCA). As with any traditional regulated firm, the FinTech firm has regulatory responsibilities to protect all of its stakeholders.

Due to the expansion of new FinTech firms and in some cases, how quickly they have come to market, there is a likelihood that AML and Financial Crime Compliance are not robust to mitigate potential risk.

Forthcoming legislation (5th Money Laundering Directive) seeks to capture providers engaged in exchange services between "cryptoassets and fiat currencies", and "custodian wallet providers".  This means services will be required to fulfil customer due diligence (CDD) obligations, assess the money laundering and terrorist financing risks they face, and report any suspicious activity they detect.

AML Assessment Limited is working with a number of Fintech firms, primarily assisting with the following:

  • AML / Financial Crime Risk Assessment
  • Policies and Procedures (e.g. Customer due-diligence)
  • Ongoing Monitoring Controls
  • Training

This ensures that FinTech firms are future proofed to meet forthcoming regulatory requirements, by considering compliance requirements as part of your initial development and product design. 

If you are keen to learn more contact AML Assessment Limited.

Please fill in the below details: