The Financial Conduct Authority (FCA) is the regulatory body responsible for overseeing and regulating financial services and markets in the United Kingdom. Established in 2013, the FCA operates independently of the UK government and is funded by fees charged to the financial services industry. Its primary objectives are to protect consumers, maintain the integrity of the UK financial system and promote effective competition within financial markets.

The FCA regulates a wide range of firms, including banks, investment firms, insurance companies and other financial service providers. In the context of Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance, the FCA sets clear expectations for how regulated entities must identify and verify their customers, assess risk, monitor transactions and report suspicious activities. It also enforces adherence to broader standards related to governance, conduct and consumer protection.

The FCA has the authority to create rules, supervise institutions, investigate misconduct and impose penalties for non-compliance, including fines, sanctions and even revoking licenses. Through its regulatory activities, the FCA plays a vital role in ensuring that the UK’s financial markets operate fairly, transparently and in a way that supports economic growth and public confidence.