The FSA is planning to streamline its anti-money laundering requirements as it simplifies the FSA Handbook in March.
It will remove the detailed rules on anti-money laundering controls in their entirety, replacing them with high level requirements for firms to put their own risk-based controls in place.
The initiative hopes firms will target resources on activities which are most likely to result in deterring and detecting money laundering.
Although the changes are effective from March, firms will have until August 2006 to become fully compliant with the new rules.
FSA financial crime sector leader Philip Robinson says: The changes in our handbook do not mean we are going soft on money laundering, they are part of delivering a more proportionate and effective regime to counter money laundering. We believe that firms will increasingly be able to target their resources where they will make the most difference in fighting crime.”