Financial Crime World

UK’s Efforts to Combat Terrorist Financing Praised in Latest Follow-Up Report

London, UK - The United Kingdom has made significant progress in implementing measures to prevent terrorist financing, according to the latest follow-up report published by the Financial Action Task Force (FATF).

Assessment of the UK’s Efforts

The report assesses the extent to which countries have implemented technical requirements to combat money laundering and terrorist financing. In its assessment of the UK’s efforts, FATF found that the country has made significant progress in implementing measures to prevent the misuse of its financial system for terrorist purposes.

  • Strong risk assessments and a risk-based approach
  • Effective national cooperation and coordination mechanisms
  • Robust money laundering offence and confiscation regime

Progress in Implementing Targeted Financial Sanctions and Regulation

The report also noted that the UK has made significant progress in implementing targeted financial sanctions related to terrorism and terrorist financing, as well as in regulating and supervising financial institutions.

  • Effective powers of supervisors to ensure compliance with anti-money laundering and counter-terrorist financing regulations
  • Strong efforts to regulate and supervise financial institutions

Areas for Improvement

However, the report did highlight some areas where the UK needs to improve:

  • Strengthening its regime for non-profit organisations
  • Improving customer due diligence requirements for DNFBPs (Designated Non-Financial Businesses and Professions)
  • Enhancing transparency and beneficial ownership requirements for legal persons and arrangements

Conclusion

Overall, the report concluded that the UK’s efforts to prevent terrorist financing are largely compliant with international standards. While there are areas where improvement is needed, the country’s progress in implementing measures to combat money laundering and terrorist financing has been significant.

FATF Recommendations

The report assessed the UK’s compliance with all 40 FATF recommendations. The following is a breakdown of the results:

  • R.1-15: Compliant (C)
  • R.16-20, R.22, R.25, R.27-31, R.35-38: Largely Compliant (LC)
  • R.21, R.24: Partly Compliant (PC)
  • R.23, R.39: Non-Compliant (NC)

The full report can be accessed on the FATF website.