Law360, London (May 24, 2016, 7:13 PM BST) -- U.K. authorities said Tuesday they will probe banks that deny services to potentially risky customers to avoid money-laundering issues, warning that the practice could be in violation of U.K. competition law.The Financial Conduct Authority on Tuesday released a long-awaited independent report into bank “de-risking,” policies in response to more rigorous prosecution of financial crime. The report confirmed banks pulling away from companies at the lower end of the financial services industry, such as money transfer firms and pawnbrokers, to cut compliance costs and regulatory scrutiny.The FCA said it would work with banks to try and reduce high due diligence... In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition. TRY LAW360 FREE FOR SEVEN DAYS
The UK Financial Conduct Authority has released a report focused on the 'de-risking' policies of banks. It found that banks are not being as "risk aware" and is concerned about their ability to manage risk. The FCA is set to begin probing banks seen to be denying services to 'risky' customers to avoid money-laundering concerns.