FCA chief warns UK unready for cyber risks
Britain lacks adequate defenses against mounting geopolitical tensions and digital security breaches threatening its financial sector, according to the chief regulator. Nikhil Rathi from the Financial Conduct Authority told business leaders on Wednesday in London that modern conflicts affect markets and consumer confidence as severely as military confrontations. He said companies carry insufficient insurance coverage for catastrophic events and cyber incidents, leaving taxpayers vulnerable when systems fail. Money laundering rose to 146 billion pounds last year, up from 135 billion, as criminal networks exploited gaps in oversight mechanisms.
The Treasury granted the watchdog expanded authority to supervise lawyers and accountants under updated anti-money laundering regulations. Greg Watson from Napier AI estimated that financial crimes drain 160 billion pounds annually from the economy, equal to more than 5 percent of gross domestic product. Analysts expect regulators will demand stronger collaboration between institutions and technology providers to detect illicit transactions. Watson said artificial intelligence could recover up to 3.3 trillion dollars globally through improved monitoring systems if deployed responsibly across the sector.
