Financial Crime World

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UK Remains Tough Terrain for Organized Crime as Government Reinforces Commitment to Safeguarding Nation’s Financial Integrity

The UK has long been a challenging environment for organized crime groups seeking to launder their illicit profits through the country’s financial system. To combat this threat, the government has reinforced its commitment to safeguarding the nation’s financial integrity by implementing robust anti-money laundering (AML) regulations.

Current AML Regulations in the UK

The Money Laundering Regulations 2017 are the primary framework for preventing money laundering and terrorist financing in the UK. These regulations require businesses to take specific measures to:

  • Verify the identity of their customers
  • Report suspicious activity to the authorities
  • Maintain accurate records

The Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA), both operating under the Bank of England, play a crucial role in enforcing AML regulations. The FCA is responsible for regulating financial services firms, while the PRA focuses on prudential regulation of banks and other financial institutions.

New Directives Strengthen EU’s Anti-Money Laundering Framework

The Fifth Anti-Money Laundering Directive (5AMLD) aims to strengthen the EU’s legal framework to prevent money laundering and terrorist financing. The UK, although having left the EU, has agreed to pursue this directive, which introduces:

  • Enhanced customer due diligence requirements for high-risk third countries
  • A requirement to maintain a list of beneficial ownership information

The Sixth Anti-Money Laundering Directive (6AMLD) was implemented in December 2020 and brings crucial updates for businesses within the EU. This directive includes:

  • Clearer definitions of criminal activities
  • Stricter penalties
  • Mandatory corporate cooperation in crime prosecution
  • Enhanced cybersecurity measures to prevent online financial crimes

Consequences of Non-Compliance

Organizations that fail to comply with AML regulations or delay compliance with anti-money laundering law face severe consequences, including:

  • Criminal proceedings
  • Financial penalties
  • Up to 14 years in prison

Regulated institutions must follow a risk-based approach to comply with these laws, including conducting risk assessments and establishing a unique AML Compliance Program.

Sanction Scanner’s AML Solutions

Sanction Scanner provides Anti-Money Laundering Compliance solutions for all large or small organizations in the UK. Our software enables organizations to easily comply with the AML Compliance Program set by regulators to avoid regulatory penalties. With powerful API support, our solution automatically performs AML control processes in seconds.

Our software offers:

  • AML Name Screening
  • AML Transaction Monitoring
  • AML Transaction Screening
  • Adverse Media Screening

Our database is updated 24/7, ensuring that customers are instantly checked against global sanctions, Politically Exposed Persons (PEPs), and Adverse Media lists.

To learn more about Sanction Scanner’s AML solutions, request a demo today.