The Financial Conduct Authority enforcement arm says it intends to drive out “dirty money” from the City, crack down on regulated firms used for fraud, and protect the integrity of UK markets over the next five years.  

The UK’s largest regulator laid out its enforcement priorities at the start of its new strategy cycle to 2030, which began at the start of this month.

The FCA’s joint executive director of enforcement and market oversight Therese Chambers said that the watchdog “has its part to play” in the government’s drive for growth.

But also warned: “Enforcement needs to be loud and in your face”.

Chambers was speaking at a conference held by NYU School of Law in the US earlier this week, although her speech was not published until today.

She argued the watchdog’s probes have sped up.

Chambers said: “We are speeding up our investigations, doing fewer investigations faster.

“Five recent investigations achieved an outcome in 16 months or less, compared to a prior average of 42 months.”

She said the body will focus on four areas over the next five years:

• Keeping dirty money out of the financial ecosystem

• Taking swift action when regulated firms are used as vehicles for fraud

• Keeping markets clean

• Developing a safe crypto regime that protects consumers

Chambers added: “Keeping dirty money out of the financial ecosystem is a huge priority for us and firms have a critical role to play through their anti-money laundering systems and controls.”

The FCA lead enforcement officer said: “High standards of regulation, including effective enforcement, are a crucial part of what makes London such a successful international financial centre.

“We’re world-leading in commercial insurance, derivatives, debt issuance, foreign exchange and commodities trading.

“Our asset management and fintech sectors are second in size only to the US.

“As well as being a regulator, we are also a criminal prosecutor, and we have record levels of prosecutions underway.

Chambers pointed out: “Through our fraud practice, we close firms down, hold to account those who have betrayed their customers’ trust, secure long prison sentences and ensure that criminals do not retain one cent of their ill-gotten gains.”

The FCA also continues to evolve its attitude towards crypto regulation and enforcement.

Chambers said: “We want to develop a safe, competitive and sustainable crypto sector in the UK. 

“One that allows for innovation and is underpinned by market integrity and consumer trust.

“We are engaging with government, industry, consumers and our regulatory partners to help get the future rules right.”