Money service businesses (MSBs) in the UK face growing regulatory pressure from the FCA. This article explains how automated AML screening, real-time sanctions checks, and audit-ready tools can help MSBs manage compliance risk, reduce false positives, and prepare for increased oversight.
In 2025, the Financial Conduct Authority (FCA) is sharpening its focus on MSBs. Failures to screen transactions, monitor for suspicious behaviour, or implement effective controls can result in serious penalties, deauthorisation, or reputational harm.
FCA Priorities for MSBs
The FCA expects all MSBs to implement a robust AML framework that includes:
- Customer due diligence (CDD) for both individuals and business clients
- Ongoing sanctions screening and politically exposed person (PEP) checks
- Transaction monitoring and alert escalation
- Clear audit trails for all risk-based decisions
- Timely suspicious activity reporting (SARs)
Additionally, firms must ensure compliance with the UK Sanctions List maintained by the Office of Financial Sanctions Implementation (OFSI).
Key Challenges Facing UK MSBs
1. High Transaction Volume and Velocity
Remittance firms and currency exchanges often process thousands of transactions per day, making manual screening impractical.
2. False Positives and Alert Fatigue
Outdated screening systems may generate excessive alerts, slowing reviews and leading to oversight risks.
3. Staff Capacity and Consistency
Small compliance teams may struggle to maintain consistent review standards across geographies or service lines.
4. Fragmented Data and Documentation
Disconnected onboarding, transaction, and case management systems make it difficult to build an audit-ready record of compliance.
How iComply Helps UK MSBs Stay Compliant
iComply offers a scalable compliance platform tailored to the needs of fast-moving, high-volume money service providers.
1. Real-Time AML and Sanctions Screening
- Integrate with UK and global watchlists (OFSI, UN, EU, etc.)
- Screen natural persons and entities at onboarding and continuously
- Flag PEPs, sanctioned individuals, and adverse media hits
2. Automated Risk Scoring and Alerts
- Customize risk thresholds by geography, transaction size, or client type
- Trigger alerts for review, escalation, or SAR filing
- Reduce false positives using contextual data and identity matching
3. Centralized Case Management
- Document findings, decisions, and next steps in a single dashboard
- Assign team roles and track case resolution timelines
- Export reports for internal audits or FCA inspections
4. Audit-Ready Logs and Compliance Reporting
- Maintain immutable logs of all screening actions
- Generate structured SARs and compliance reports on demand
- Support full FCA audit traceability
5. Data Privacy and Localization Controls
- Comply with UK GDPR and OFSI disclosure requirements
- Ensure all sensitive data is encrypted and stored in the UK
Case Insight: Money Services Business in London
A multi-jurisdictional money services business integrated iComply to consolidate onboarding and screening across five countries. In less than three months:
- Reduced false positives by 42%
- Cut review time from 2 hours to 20 minutes per flagged case
- Passed an FCA spot check with zero findings
What to Expect in 2025
- FCA Enforcement Surge: More on-site inspections and thematic reviews of AML controls
- Sanctions Expansion: Increased OFSI updates related to geopolitical instability
- Tech Adoption Mandates: Growing regulatory expectation to adopt RegTech and eliminate manual-only workflows
Take Action
MSBs that fail to modernize AML compliance are at risk of enforcement actions, fines, and loss of authorisation. But those who invest in scalable, intelligent tools can turn compliance into a competitive edge.
Schedule a consultation with iComply to see how we help UK MSBs screen smarter, stay compliant, and scale with confidence.
