Financial Crime World

UK Businesses Must Implement Anti-Money Laundering Policy to Combat Financial Crimes

The UK government has introduced several legislations aimed at preventing the use of its financial systems for illegal activities. In this effort, businesses in the United Kingdom are required to implement an anti-money laundering policy to curb financial crimes and money laundering.

Key Legislation

  • Proceeds of Crime Act 2002
  • Terrorism Act 2000
  • Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 as amended by the Money Laundering and Terrorist Financing (Amendment) Regulations 2019

Regulated Sector

Businesses that fall within the “regulated sector” are required to put in place anti-money laundering policies, controls, and procedures to anticipate and prevent their businesses from being used by criminals to launder money and fund terrorism.

Enhanced Due Diligence Measures

The 2019 Regulations prescribe mandatory enhanced due diligence measures when a transaction appears to be “high risk”. This is done as a matter of good practice to ensure that businesses are taking adequate steps to prevent financial crimes.

Specific Industry Templates

  • Property portfolio of templates for estate agents and lettings agents
  • Anti-Money Laundering Policy template designed for low-risk, unregulated businesses

Anti-Money Laundering Policy Template

The policy contains sections on:

  • Introduction
  • Scope of policy
  • What is money laundering
  • Money laundering reporting officer
  • Suspicious of money laundering
  • Customer identification and due diligence
  • Ongoing monitoring
  • Data protection
  • Record keeping

Implementation and Compliance

Businesses are advised to implement this policy to ensure compliance with anti-money laundering regulations and avoid serious civil and criminal penalties for non-compliance.

By implementing an anti-money laundering policy, businesses in the UK can play a crucial role in preventing financial crimes and money laundering. Failure to comply with these regulations can result in severe consequences, making it essential for businesses to stay informed and compliant with the latest legislation and guidelines.