FCA Insider Trading Case Highlights Ongoing Threat of Money Laundering in the UK Financial System

The Financial Conduct Authority (FCA) has secured convictions against Redinel and Oerta Korfuzi for insider dealing and money laundering offences worth more than £1 million. While the market abuse element has attracted significant attention, the money laundering aspect of the case reveals a broader and equally urgent risk to the UK's financial system.

Between January 2019 and March 2021, the Korfuzi siblings made 176 cash deposits totalling £198,210. The source of this cash was criminal in origin but unrelated to the insider trading offences, underscoring the layered and complex nature of modern money laundering networks. The deposits were structured to avoid detection and integrate illicit funds into the legitimate financial ecosystem, a classic example of placement and layering in the money laundering cycle.

This case is a stark reminder of how money laundering is not limited to high-profile fraud or organised crime, but can occur in tandem with white-collar offences such as insider trading. It also reflects the evolving typologies used by criminals to disguise the origins of illicit funds and evade detection.

For financial institutions, the FCA’s action reinforces the need for effective anti-money laundering (AML) controls, particularly around unusual cash activity, linked accounts, and unexplained wealth. Enhanced due diligence, robust transaction monitoring, and ongoing staff training are vital to identifying suspicious behaviour at an early stage.

With sentencing due in July and confiscation orders pending, the FCA’s dual prosecution for insider dealing and money laundering serves as a powerful deterrent. It also strengthens the UK’s position as a global leader in financial crime enforcement.

For firms seeking to bolster their AML compliance, this case offers a timely warning: money laundering risks can stem from internal and external sources, and early detection remains the strongest defence against reputational and regulatory harm.

Read the press release here.