The Financial Conduct Authority (FCA) has published a set of new measures designed to help banks cut the risk of money laundering via the Post Office.

The National Economic Crime Centre (NECC) estimates that hundreds of millions of pounds are laundered every year through cash deposits at the Post Office.

The regulator said that while banks have made good progress in improving safeguards, including a 43 per cent drop in the time taken to report suspicious activity at Post Offices, there is "still more work to do".

The authority called for a reduction in cash deposit limits at the Post Office to below the existing limit of £20,000 per transactions, adding that banks should take a data-led approach and "consider whether a tailored offer is appropriate".

The financial watchdog said that banks should move towards card-based transactions and away from paying-in slips where possible to allow for better monitoring.

It also urged banks to upskill staff and improve monitoring capabilities in banks to spot patterns of suspicious activity.

When banks do spot suspicious transactions, banks should reduce the time taken to submit Suspicious Activity Reports to the National Crime Agency (NCA), said the FCA.

The FCA added that firms should improve intelligence sharing so that information is passed on to other financial institutions, law enforcement and the FCA on a regular basis.

“We have worked in partnership with law enforcement, industry and government to ensure people and businesses can still draw on the vital cash banking services provided by the Post Office, while addressing gaps that criminals could abuse,” said Sheldon Mills, the FCA’s executive director of consumers and competition, adding that the move is part of the regulator’s three-year strategy on reducing financial crime.

The FCA said it will test the safeguards put in place and consider whether firms have taken steps to protect access to cash at the Post Office for legitimate customers.

Share Story: