FCA’s Recommends Appropriate Training for Heads of Compliance & Money Laundering Reporting Officers (MLRO)
In an interesting article published by the UK’s Financial Conduct Authority (FCA), the country’s regulatory authority recommends that authorised and registered firms develop compliance and AML leaders “who are suitably competent and capable of effectively performing the roles.”
Relying on past experience and the many applications that have crossed its desk, the FCA lays out a series of suggestions in terms of the competencies and capabilities that must be held by Heads of Compliance and Money Laundering Reporting Officers (MLROs), two required FCA-approved senior management functions.
According to the FCA, companies looking for regulatory approval should have Heads of Compliance and MLROs that are capably trained, have sufficient experience in these areas, and maintain the capacity to carry out the job in an effective manner.
The Importance of Training
The FCA highlights the importance of training in compliance and AML issues, something LGCA can help your firm and its staff members with.
Applicants must have professionals in these positions who have already undergone appropriate, if not extensive, training.
This training, per the FCA, should be “relevant to the type of business the firm they propose to work for,” “up-to-date,” and offering pertinent “knowledge of the current regulatory rules and expectations.”
Likewise, the courses or certifications should be of “sufficient length and depth,” enough for the Head of Compliance or MLRO to carry out their job in an effective, transparent, and productive way.
Experience Plays a Key Role
In terms of experience, the FCA points out that, while important, it is not as clear cut as expected.
Successful candidates do not necessarily need to have held the roles of Head of Compliance or MLRO in the past and could come from a wide array of professional or education backgrounds including lawyers, accountants, and consultants.
In some instances, as when it comes to smaller firms or those with less resources, managers or executives can carry out these roles as long as they have the experience and undergone relevant training.
Heads of Compliance & MLROs Must Be Able to Do Their Jobs
Individuals in these roles must have the capacity to do the work in a way that will not infringe upon the company’s ability to comply with its regulatory obligations.
Part-time Heads of Compliance or MLROs may be approved as long as the time they spend on the job is “proportionate and sufficient.”
Additionally, if the proposed positions are to be filled by individuals that also perform another role within the company, then there must be no conflict of interest between the two.
Finally, according to the FCA, it is preferable for the Head of Compliance or MLRO to be based out the firm’s UK headquarter or office.
LGCA’s Here to Help
With this in mind, LGCA is ready to offer you and your team with the executive training, certification courses, and workshops it requires to build a strong compliance and AML function for your organisation.
Get in touch with us at firstname.lastname@example.org for more information on our compliance and AML offerings.
Alternatively have a look at our Compliance Professionals LGCA Academy.
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