This revelation, found through a Freedom of Information request by law firm Hickman & Rose, found that there has been no criminal prosecutions against a firm or individual for breaching the regulations.
Under the Money Laundering Regulations 2017, the FCA is able to criminally prosecute a person or organisation it believes is not putting sufficient safeguards in place against money laundering.
A guilty verdict could lead to a fine and up to two years’ imprisonment.
Andrew Katzen, head of regulatory at Hickman & Rose, told City AM: “There is probably action behind the scenes, but it is just so slow.
“If there is meant to be a deterrent effect in those powers, how is that impacted by the delays?”
The FCA said it was investigating three people in connection with suspected criminal breaches of the regulations.
City AM reports that the FCA is investigating criminal and civil money laundering offences that took place before the introduction of the regulations in 2017.
John Dobson, chief executive of SmartSearch, said: “It’s vital that firms comply with money laundering regulations – not just for compliance reasons but to help stop dangerous criminals in their tracks.
“But regulators need to show they’ve got teeth and are taking their responsibilities seriously too.
“Where there have been serious breaches, the FCA needs to act fast to make it crystal-clear that this will not be tolerated.
“Further changes to anti-money-laundering rules are due to come into force at the end of the year that will widen the definition of money laundering, and increase jail terms for those found guilty of criminal offences.
“The FCA needs to up its game or risk lulling firms into a false sense of security.”
