Financial Crime & AML Policy
1 – Policy Statement
Faciit Technologies Ltd is committed to identifying, preventing, and reporting financial crime.
As an authorised FCA regulated credit broker, we ensure that our people, systems, and processes are equipped to prevent money laundering, fraud, terrorist financing, bribery, and sanctions breaches.
This policy explains how Faciit complies with the Money Laundering Regulations 2017 (as amended), the Proceeds of Crime Act 2002, the Terrorism Act 2000, the Bribery Act 2010, the Economic Crime and Corporate Transparency Act 2023, and applicable FCA guidance including SYSC 6.3 and the Financial Crime Guide (FCG).
2 – Scope and Application
This policy applies to all Faciit employees, directors, consultants, contractors, and third-party service providers who act on behalf of Faciit in any capacity. Everyone is expected to be alert to the risks of financial crime and to follow Faciit's procedures, controls, and training requirements.
Failure to comply may lead to disciplinary action and potential regulatory reporting.
3 – Regulatory Background
Faciit's financial crime obligations derive from UK legislation and guidance, including:
- Proceeds of Crime Act 2002 (POCA)
- Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017 (as amended)
- Economic Crime and Corporate Transparency Act 2023
- Bribery Act 2010
- Sanctions and Anti-Money Laundering Act 2018
- FCA Handbook (SYSC 6.3, FCG, PRIN 2A - Consumer Duty)
- JMLSG Guidance (Faciit refers to JMLSG guidance as industry best practice when interpreting regulatory obligations)
4 – Money Laundering and Terrorist Financing Risks
Money laundering involves concealing the source of criminal funds. Terrorist financing includes the use of both legal and illegal funds to support terrorism. These activities threaten financial systems and consumer trust.
Money laundering is the term used to describe the process or act of disguising or hiding the original ownership of money that has been obtained through criminal acts such as terrorism, corruption or fraud.
Such monies are then moved through legitimate businesses and sources to make it appear 'clean'.
Stages of Money Laundering:
- Placement – Criminal funds enter the financial system.
- Layering – Complex transactions hide the origin of funds.
- Integration – Funds appear legitimate and re-enter the economy.
High-Risk Areas for Faciit:
- Use of stolen or synthetic identities to access credit products
- Misuse of Open Banking data or fake employment details
- Fraudulent applications, or unusually structured settlements
- Third-party misuse of customer accounts or identities
5 – Governance and Responsibilities
Money Laundering Reporting Officer (MLRO/Nominated Officer)
Faciit's MLRO/Nominated Officer is responsible for:
- Maintaining financial crime policies and controls
- Assessing internal Suspicious Activity Reports (SARs)
- Submitting SARs to the National Crime Agency (NCA)
- Reporting to senior management on financial crime risk and performance
Board and Senior Management
- Review financial crime risk assessments and reports
- Ensure adequate resourcing, training, and escalation pathways
- Approve enhanced due diligence decisions and new high-risk partnerships
All Staff
- Complete AML and financial crime training annually
- Escalate suspicious activity or fraud to the MLRO/Nominated Officer immediately
- Follow all internal due diligence and risk assessment procedures
6 – Customer Due Diligence (CDD) and Enhanced Due Diligence (EDD)
CDD Requirements
Faciit verifies identity and checks sanctions and PEP (politically exposed person) status before onboarding customers (in partnership with the lenders that it introduces customers to). This is supported through digital KYC and Open Banking integrations.
As a credit broker, Faciit assists with the collection and verification of identity information, but ultimate responsibility for onboarding and credit decisions lies with the relevant lender.
EDD Triggers
Enhanced due diligence is applied to:
- Customers from high-risk jurisdictions
- PEPs and their associates
- Cases involving large, complex, or irregular transactions
EDD measures may include:
- Source of funds/wealth verification
- Manual fraud screening and adverse media searches
- Approval by senior management
7 – Suspicious Activity and Fraud Reporting
Red Flags
- Sudden changes in customer behaviour
- Unexplained early settlement of loans
- Multiple or duplicate applications
- Customer reluctance to provide information
Our risk based approach therefore includes:
- Identifying the money laundering risks that are relevant to our business
- Recording these risks on our risk register
- Carrying out detailed risk assessments on the risk areas detailed below
- Developing controls and procedures to directly manage and reduce the impact of the risks that relate to our customer profile, transactions, products and services offered and payment processing
- Monitoring the controls and improving their efficiency
- Keeping records of all risk assessments, reviews and improvement action plans
Reporting Procedure
- Employees must report suspicions promptly to the MLRO/Nominated Officer
- No further action should be taken until the MLRO/Nominated Officer gives direction
- No "tipping off" the customer, this is a criminal offence
Using all the information available at the time, we will make an informed decision using sound judgment as to whether there are reasonable grounds for knowledge or suspicion of money laundering and to enable them to prepare their report for the NCA where appropriate.
Any employee who suspects financial crime, including money laundering, fraud, or bribery, must report their suspicions promptly to senior management. Upon receipt, senior management will evaluate the report and, if necessary, report the matter to the NCA.
No further enquiries or steps in related transactions should be taken without authorisation from Senior Management. Employees must not disclose suspicions to others, as this may alert suspects and prejudice investigations.
SARs will be assessed and, where appropriate, reported to the NCA. Records are maintained securely for at least 5 years.
8 – Sanctions Compliance
Faciit (in partnership with the lenders that it introduces customer to) screens all customers against:
- UK Consolidated Financial Sanctions List (HM Treasury)
- UN, EU, and OFAC lists
- FATF high-risk jurisdictions
If a match is identified, onboarding is suspended and escalated to the MLRO/Nominated Officer for further investigation, in partnership with our panel lenders.
9 – Anti-Bribery and Corruption Measures
Bribery is offering, giving, receiving, or soliciting something of value to influence the actions of an individual in a position of trust. Corruption is the abuse of entrusted power for private gain and may include bribery. Examples of bribes include:
- Gifts
- Hospitality or entertainment
- Money or cash equivalents
- Kickbacks or unreasonable commissions
- Invalid allowances or expenses
- Unwarranted rebates
- Charitable contributions
Faciit has a zero-tolerance policy for bribery and corruption. The following are prohibited:
- Cash or equivalent payments given or received with the intention to influence
- Gifts or hospitality exceeding £200 in value without senior management sign-off
- Undisclosed rebates, improper commissions, or conflicts of interest
Risk-based due diligence is conducted on partners, suppliers, and introducers in order to mitigate the risk of the firm becoming involved in unacceptable practices in this regard.
10 – Training and Awareness
We have implemented Anti-Money Laundering and Financial Crime training to ensure that all staff undergo AML knowledge and awareness training.
Our Financial Crime training program ensures that all employees are confident and competent in the risk assessment and prevention of money laundering and financial crime, and are made aware of the associated regulations relating to money laundering and terrorist financing.
All employees must complete annual training covering:
- AML and CDD/EDD procedures
- Fraud typologies and red flags
- Reporting obligations and escalation process
- Sanctions screening and prohibition of facilitation payments
Staff in high-risk roles receive additional targeted training.
11 – Record Keeping
Faciit retains the following for a minimum of five years:
- Customer onboarding records (KYC, CDD, EDD)
- Suspicious activity reports and decisions
- Staff training logs and attestations
- Internal audits and policy reviews
Records are stored securely and may be made available to regulators upon request.
12 – Monitoring and Internal Audit
The MLRO/Nominated Officer reviews internal controls and conducts annual financial crime risk assessments. Any deficiencies are reported to the Board with remediation actions assigned.
Management Information (MI) is produced quarterly, covering:
- Volume and nature of SARs
- Fraud trends and emerging risks
- Training completion and audit outcomes
13 – Policy Review
This policy is reviewed at least annually or upon any regulatory or legislative change. Revisions are approved by the firm's SMF16 holder and recorded in the version history.