Our experts have created this money laundering information hub to help you learn more and keep up to date.
Discover more from a selection of money laundering insights articles written by the AMLCC founder and money laundering expert, Richard Simms. Find answers to your AMLCC product FAQs and AML regulation FAQs. Read more detailed money laundering information and background in our AML law and guidance section.
AML law and guidance
A list of some key information relating to UK money laundering and terrorist financing laws, regulations and guidance
What is money laundering?
- Money laundering is doing (pretty much) anything with the proceeds of crime
- Proceeds of crime are the result of criminal activity
- Disguising the criminal origins of proceeds of crime allows criminals to benefit from crime
- Disguising the true owners of assets obtained with proceeds of crime allows criminals to distance themselves for the crime
The National Risk Assessment of Money Laundering and Terrorist Financing 2020
The UK’s third National Risk Assessment (NRA) builds on the UK’s firm understanding of economic crime. It evaluates the actions certain sectors must take to protect the UK from the threat of money laundering and terrorist financing.
The National Risk Assessment of Money Laundering and Terrorist Financing 2017
The 2017 National Risk Assessment was the second detailed analysis of the up to date situation at that time regarding the UK money laundering and terrorist financing risk. It detailed how the risks have changed since the 2015 National Risk Assessment and what action has been taken to address those risks.
The National Risk Assessment of Money Laundering and Terrorist Financing 2015
The 2015 NRA was the first risk analysis to identify, understand and assess the UK money laundering and terrorist financing risks.
The Office for Professional Body Anti-Money Laundering Supervision (OPBAS) was set up in January 2018 by the government. A new regulator to reinforce the UK AML supervisory regime and make sure AML Supervisors offer consistently high levels of supervision.
The Joint Money-Laundering Steering Group (JMLSG) – guidance for the financial services sector
JMLSG guidance is to assist financial industry firms to comply with their UK anti-money laundering and counter terrorist financing risk obligations according to the legal regulations. These firms are represented on JMLSG by their trade member bodies.
AMLGAS – AML Guidance for the Accountancy Sector
The Anti-Money Laundering Guidance for the Accountancy Sector (AMLGAS) was due for an update following the amendments to the AML regulations that came into force in January 2020; driven by what’s known as the 5th EU Money Laundering Directive (5MLD). The draft AMLGAS update is pending final HM Treasury Approval.
AMLGAS supplementary guidance for tax advisers
This supplementary guidance to the AML Guidance for the Accountancy Sector (AMLGAS) focuses on tax specific issues and was approved by HM Treasury on 14th June 2019. It must be read in conjunction with the CCAB’s AMLGAS.
The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017)
The Money Laundering, Terrorist Financing and Transfer of Funds (information on the Payer) Regulations 2017 (MLR 2017) came into force in June 2017. These regulations improve upon and close gaps in the MLR 2007 and the Transfer of Funds (Information on the Payer) Regulations 2007 such as changing the approach to client due diligence. There aims include stopping criminals using professional services to launder money by requiring professionals to take a risk-based approach.
The Proceeds of Crime Act 2002 (POCA)
The aim of POCA was to reform the legislation around proceeds of crime, especially the recovery of criminal assets, making it easier to enforce. It criminalised money laundering and made it an offence for persons in the regulated sector not to report suspicions regarding money laundering activity. The 2020 National Risk Assessment sets out more details on POCA.
The Criminal Finances Act 2017 (CFA)
The Criminal Finances Act (FCA) became law on 27th April 2017 and updates POCA, the Terrorism Act 2000, and the Anti-Terrorism Crime & Security Act 2001. It provides additional powers to enable law enforcement and prosecution agencies to identify and recover the proceeds of crime, tackle money laundering, tax evasion and corruption, and stop the financing of terrorism.
The Terrorism Act (TACT) 2000
The Terrorism Act (TACT) 2000 includes key provisions criminalising the financing of terrorism. These include inviting, providing, or receiving money or property with the intention or reasonable suspicion that it will be used for the purposes of terrorism and using or intending to use money or other property for the purposes of terrorism. It introduced a new terrorism ‘stop and search’ power giving British police the power to stop and search people and vehicles in order to prevent terrorism, without need for reasonable suspicion a crime has occurred.
The Sanctions and Anti-Money Laundering Act 2018 (SAMLA)
SAMLA gave the government wider powers to implement a range of sanctions including financial sanctions, trade sanctions and immigration sanctions; where appropriate for the purpose of compliance with the United Nations obligations or other international obligations. The Act also made new provisions in relation to the detection, investigation and prevention of money laundering and terrorist financing. SAMLA enabled sanctions to continue uninterrupted at the end of the EU exit period.
The Office of Financial Sanctions Implementation (OFSI)
OFSI is part of HM Treasury and helps to ensure that financial sanctions are properly understood, implemented and enforced in the United Kingdom. Financial sanctions can apply to individuals, entities and governments (in the UK or abroad). Financial sanctions orders prohibit a firm from carrying out transactions with a person or organisation.
Terrorist Asset-Freezing etc Act 2010 (TAFA)
TAFA implements obligations placed on the UK by UN Security Council Resolutions. It gives HM Treasury the power to freeze the assets of individuals and groups believed to be involved in terrorism, whether in the UK or abroad, and to deprive them of access to ‘their’ financial resources.