FCA on politically exposed persons

The UK's Financial Conduct Authority (FCA) has urged financial firms to enhance their treatment of politically exposed people (PEPs) to prevent unfair outcomes, following concerns raised after Nigel Farage's bank account closure. While most firms were found not to conduct excessive checks on PEPs, the FCA emphasized the need for improvement across the board. The regulator proposed changes to guidelines, including treating UK PEPs as lower risk and offering greater flexibility in approving PEP relationships. Firms were instructed to tighten PEP definitions, promptly review their statuses post-public office, and enhance staff training. The FCA highlighted the importance of proportionate scrutiny on PEPs without disadvantaging those in public roles or their families.