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Being a financial center with its leading trading power, the UK is one of Europe's major financial leaders. Therefore, money laundering and terrorism financing pose a significant risk in the UK due to developing necessary finance and real estate sectors. The UK has very heavy money laundering regulations and laws to eliminate and reduce these risks.
Sanction Scanner has prepared the "AML Guide for The United Kingdom" whitepaper to explain the UK's stance Anti-Money Laundering and Counter-Terrorism Financing.
Anti-Money Laundering in the United Kingdom (UK)
The United Kingdom is also one of the most developed countries to combat money laundering, terrorist financing, tax evasion, fraud, human trafficking, and arms smuggling. It can be said that the UK is quite right in this struggle, which we think has an important role in the financial sector in the world because the risks and negative effects of crimes such as money laundering are quite high. The UK has very heavy regulations and laws to reduce these risks. As a result, the necessary institutions that do not comply with these laws are punished.
Some of the sectors regulated in the UK are Banks, Estate agencies, FinTech, Cryptocurrency, Casinos, High-Value Dealers, Art Market, MSBs, Trust Service Accountancy Sector. These industries in the UK have AML Compliance Requirements set by regulators. There are some requirements, such as for organizations to conduct a risk assessment for the company, follow a risk-based approach, establish an AML Compliance Program in accordance with these risks, and comply with Know Your Customer (KYC) procedures to new customers and partners.
AML Regulators in the United Kingdom
Many authorities and regulatory agencies in the UK prevent financial crimes such as money laundering and terrorist financing. AML regulations in the UK aim to minimize the negative effects of crime on the economy by reducing money laundering risks through laws. Institutions that do not comply with AML laws face severe administrative penalties. Examples of regulatory and authorized institutions in the UK are The Financial Conduct Authority (FCA), HM Revenue and Customs (HMRC), National Crime Agency (NCA). Moreover, The UK is one of the countries that must adhere to the Financial Action Task Force (FATF) AML recommendations. The United Kingdom is not on the FATF List of countries with AML deficiencies. The Mutual Evaluation Report, a review of implementing the latest AML/CTF standards in the UK, was conducted by the FATF in 2018. The UK significantly complies with 15 of the FATF 40 Recommendations based on this assessment.
AML Compliance Requirements in The Uk
Anti-Money Laundering requirements vary by region and industry. Below are some of the general Anti-Money Laundering requirements that comply with the UK. You can download the whitepaper to get detailed information about these aml requirements.
- Aml Compliance Program
- Risk-based approach and risk assessment
- Know Your Customer (KYC)
- Employee training
- Recording and keeping procedures
This whitepaper by Sanction Scanner contains an important review of Anti-Money Laundering regulations in the UK, regulators, regulated industries, AML Compliance Requirements that industries have to comply with, and how Sanction Scanner can comply with these regulations with its solutions.