The small print of anti-money laundering laws

The small print of anti-money laundering laws

How will this consultation add clarity to the currently confusing money laundering laws? Alan Ward, associate at Stephenson Harwood, explains how simplified legislation could ease burdens while allowing companies and lawyers to create a more structured and meaningful reporting regime.

Original news

Government consults on effectiveness of anti-money laundering regime, LNB News 28/08/2015 122

The government is consulting until 23 October 2015 on the impact the current anti-money laundering (AML) and terrorist financing regime is having on business, and specifically the role of supervisors in that regime.

Why has the Department for Business, Innovation and Skills (BIS) commenced a review of AML laws?

As with much regulatory reform, the driver is largely political. The government has a stated aim of cutting red tape in order to save businesses £10bn a year. Money laundering laws appear to have been chosen as the first target of the government’s review as business groups consistently cite them as a significant and costly burden.

In undertaking this review, the government will be mindful of the fact much of the UK’s AML framework is the product of European Directives, the latest of which (the Fourth Money Laundering Directive 2015/849 EU) is due to enter into force by the end of June 2017.

However, many of the challenges businesses face in achieving AML compliance are a result of the UK ‘gold plating’ the requirements of the European money laundering Directives—imposing requirements far and above the minimum standard required. As such, the government may find that, notwithstanding the need for compliance with European law, it has significant room for manoeuvre.

What are the main challenges that businesses face from current AML laws in the UK?

Many professionals complain about the inflexible requirement, pursuant to the Money Laundering Regulations to conduct customer due diligence or ‘know your customer’ checks before accepting new business. This is a good example of a regulatory obligation tha

Subscription Form

Related Articles:
Latest Articles:

Already a subscriber? Login
RELX (UK) Limited, trading as LexisNexis, and our LexisNexis Legal & Professional group companies will contact you to confirm your email address. You can manage your communication preferences via our Preference Centre. You can learn more about how we handle your personal data and your rights by reviewing our  Privacy Policy.

Access this article and thousands of others like it free by subscribing to our blog.

Read full article

Already a subscriber? Login