Cifas’ response to the Financial Conduct Authority’s publication on money mules

• Report recognises National Fraud Database as ‘crucial’ in financial crime response for businesses
• Data sharing enables firms to ‘take swift action’ to mitigate risk, notes FCA
• Cross-sector collaboration remains critical in the fight against muling

We warmly welcome the investigation into how the Cifas National Fraud Database is used by our members to manage the risk posed by money mules. The FCA’s report recognises the critical role that data sharing and intelligence plays in helping businesses to tackle this pervasive crime.

Money muling is a serious fraud threat which causes significant harm to individuals, businesses, and communities, exacerbating the UK’s fraud emergency. In the first half of 2024, cases filed to the NFD, indicative of money muling, increased by 11%, compared to 2023.

The FCA has found that all firms recognised the NFD as a crucial component of their financial crime and fraud controls, both in terms of customer onboarding and ongoing monitoring. The firms also agreed the NFD alerts them to known high risk individuals, enabling them to take swift action to mitigate the risk of harm where appropriate. All firms detailed a collaborative and supportive partnership with Cifas which assisted with the prevention, detection, and disruption of fraud.

Money muling is not a victimless crime, nor should it be normalised by society as an easy way to make ‘quick cash’. It is money laundering and facilitates larger criminal activities, including drug dealing and human trafficking. It also results in serious and long-lasting consequences for individuals – whether someone has been coerced, or they are willing participants when moving illegal funds around.

Tackling money muling requires industry collaboration across all sectors, as well as government agencies, tech companies, social media platforms, and regulators. By working together, sharing data and intelligence, and offering specialist education, we can collectively provide greater safety for UK businesses and people.

In addition to the NFD, Cifas has created a range of tools to help reduce the impact of muling and financial crime including APP Victim Check, Vision, and Beneficiary Checks. Additionally, the ‘Don’t Be Fooled’ campaign, delivered in partnership with UK Finance, teaches young people and students about the risks and consequences of money muling, and supports schools with critical lesson plans and expert advice.

We welcome the opportunity to work closely with the FCA on how we continue to support our members to disrupt money muling, strengthen data sharing, adopt counter-fraud prevention solutions, and share best practices. Through collaboration, we can ensure mules no longer play a significant role in financial crime and protect the public and businesses from their harmful effects.

Contact us at press@cifas.org.uk