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Redesign and implement a new FC framework

The Client 

A  listed UK-based subprime lender that offers lower value short-term loans, either unsecured or with a guarantor, to individuals who are unable to secure or qualify for a loan from the mainstream financial firms mainly due to their financial circumstances and who may also be considered vulnerable customers.  

The Challenge 

The client needed to enhance, redesign, and implement a new FC framework aligned to a new business model to demonstrate the effectiveness of the FC controls, to the regulator under close scrutiny.  The client asked Lysis to assist in building and implementing a proper financial crime (FC) framework in compliance with the regulations and with FCA expectations. 

The Solution 

Due to the specific industry that the client operated in, they had a strong focus on the prevention of fraud but had little expertise about how to mitigate the risks associated with their business environment.  

 

Lysis successfully redrafted some of their existing policies and wrote additional policies, in readiness for the launch of their new product, that met the specific financial crime requirements as determined by the FCA. This included a comprehensive financial crime policy, a risk rating policy, Financial Crime Risk Assessment, Client Risk Rating, Risk Assessment Statement, Risk Assessment Methodology as well as the TM and on-boarding procedures.   

Through workshops, Lysis was able to impress upon the client the risks faced by the business and advise on implementing proportionate controls which would operate under a mix of manual and automated functions to be effective in mitigating the FC inherent risks. Lysis further guided the client on the requirements for a robust FC governance and operational structure. 

Lysis conducted a number of  workshops to include the business, the FC operations and FC specialist team that specifically focussed on the requirements to launch their new product offering, how to manage the process going forward whilst remaining compliant. The workshops increased the level of knowledge regarding financial crime across staff from the 1st and the 2nd line of defence of the organisation.  

Lysis further engaged with their third-party providers to gain a clear understanding of the services offered and to ensure their functionality for onboarding, screening, transaction monitoring, management of alerts etc., were aligned with the client’s policies and procedures and could be  managed in a highly effective and efficient manner.  

The Outcome

Lysis met and exceeded the client’s expectations and provided the client a comprehensive understanding of the risks within their business and offered practical advice on how to mitigate these risks by having proportionate controls in place. Lysis also provided the client with robust policies and procedures that were based on best practice, to enable the client to conduct business in a regulated environment and  stand them in good stead for future growth. As a result of the quality of work, Lysis was appointed as the “Partner of Choice” to support the client with all financial crime related challenges, throughout the period of growth and rapid transformation.