OverviewThe private wealth management sector is uniquely susceptible to financial crime risks, such as fraud, money laundering and sanctions breaches, as highlighted in the FCA’s Dear CEO letter. Private wealth customers have lost significant sums to scams and fraud, and the regulators continue to focus their enforcement efforts on financial crime. Financial crime was again the leading source of enforcement activity, with particular focus on AML controls, sanctions compliance, transaction monitoring and crypto‑asset firms. Domestic Politically Exposed Persons (PEPs) ‑ a calibrated approachThe FCA’s July 2025 guidance (FG25/3) clarifies that:UK PEPs are generally lower risk. Guidance on balancing Consumer Duty obligations when designing systems and controls to prevent financial crime.