shutterstock_519567250.jpg

Crypto asset business obtains registration with FCA

The Client 

The crypto asset business is a subsidiary of a Nasdaq-listed company in the United States.

The Challenge 

The client approached Lysis with the request to assist them with the process to obtain registration from the FCA which would enable them to operate in the UK market as a crypto asset business. Due to the holding company’s strong global footprint, part of the FCA requirements for registration included the need for a UK based money laundering reporting officer (MLRO).  

The Solution 

Lysis provided the client with a highly experienced MLRO that worked with the senior management of the business to implement all required controls and processes. Regarding specific requirements from the client, the responsibilities of the MLRO included the flagging and escalation of suspicious transactions, assisting management to compile the anti-money laundering (AML) framework and ensuring that the customer screening controls, as part of the Know Your Customer (KYC) process, were effective. The MLRO further engaged with the FCA, on behalf of the client, to ensure that all documentation for the registration process were in line with requirements. 

 

We often find that one of the biggest challenges for businesses, when they expand their footprint to other countries, is to comply with regulatory requirements in other jurisdictions simply because of the different requirements of these regulators.  

 

From a consulting perspective, the MLRO that Lysis provided assisted the business with identifying the risk, assessing the risk, and building a bespoke financial crime framework in line with their specific requirements. The MLRO also reviewed their risk rating methodology to ensure that mitigation was aligned to the level of risk. From an operational perspective the MLRO worked with the senior management team of the business to implement effective controls and procedures linked to KYC and transaction monitoring.  

The Outcome

With the assistance of the MLRO that Lysis provided, the client successfully obtained FCA registration to operate in the UK as a crypto asset business.