Nikhil Rathi emphasises information sharing and technology as key tools in unified fight against financial crime at FCA conference.
Financial crime networks are becoming increasingly organised, forcing regulators to demand a system-wide response from banks, fintech firms and law enforcement agencies.
Nikhil Rathi, Chief Executive of the Financial Conduct Authority, outlined his strategy at the regulator’s “Working together to fight financial crime” conference on 14 May 2026. He identified three core pillars needed to disrupt criminal networks: stronger information sharing between institutions, smarter use of technology, and coordinated joint working across the sector.
The Scale of the Threat
The numbers paint a stark picture. Cryptocurrency remains the second-highest money-laundering threat on the UK’s national risk register, according to Rathi’s address to the conference.
But it’s not just digital currencies causing concern. Terrorist financing through traditional financial crime channels represents a growing risk across Britain. The FCA now regulates around 50,000 firms — all potential entry points for criminal exploitation.
Technology as Both Problem and Solution
Criminal organisations have embraced technology to scale their operations. Yet Rathi believes the same digital tools can help fight back.
The FCA has established a Digital Sandbox to support fintech innovation as maintaining security standards. This allows legitimate firms to develop crime-fighting technology safely. The regulator is also overseeing Critical Third Parties — including AI services — that underpin financial infrastructure.
Banks and payment providers must now share intelligence more effectively. Traditional barriers between institutions have created blind spots that organised crime exploits.
Breaking Down the Silos
Rathi’s push for joint working reflects a harsh reality: financial criminals don’t respect institutional boundaries.
The FCA works alongside the Bank of England and Prudential Regulation Authority to monitor systemic risks. But coordination extends beyond Whitehall — local police forces and regional authorities play essential roles in the fight.
Information sharing remains the biggest challenge. Privacy rules and competitive concerns have historically limited data exchange between firms. Rathi argues these barriers must fall to match the sophistication of modern criminal networks.
The Regulatory Response
Recent regulatory focus has expanded to include Big Tech firms’ gatekeeping role in financial data. These companies control vast amounts of transaction information that could help identify suspicious patterns.
Rathi, who was reappointed for a second term running until September 2030, has made financial crime prevention a priority. His approach balances innovation with protection — allowing legitimate fintech development as tightening controls on criminal exploitation.
Source: @TheFCA
Key Takeaways
- Financial crime networks are becoming more organised, requiring coordinated response from regulators, banks and law enforcement
- Cryptocurrency ranks as the second-highest money-laundering threat on the UK’s national risk register
- FCA demands stronger information sharing, smarter technology use and joint working across the financial sector
What This Means for Kent Residents
Kent households and businesses will benefit from improved financial crime prevention as banks implement stronger detection systems and share intelligence more effectively. Local firms operating in financial services must prepare for enhanced compliance requirements around information sharing and technology standards. Residents should remain vigilant about fraud attempts, but can expect better protection as institutions coordinate their defences against increasingly sophisticated criminal networks targeting the county’s consumers and businesses.