UK anti-money laundering & counter terrorist finance policy
The Treasury is responsible for managing the threat to the UK financial system from money laundering and for the regulatory framework for combating illicit finance, including terrorist and proliferation finance. The EU Third Money Laundering Directive was implemented in the UK – as the Money Laundering Regulations 2007 – in December 2007. The Regulations are a fundamental part of the UK’s fight against money laundering and terrorist financing, reflecting the global standards promoted by the Financial Action Task Force.
The Treasury works closely with the Home Office – which is responsible for the Proceeds of Crime Act 2002 and the Terrorism Act 2000 – as well as with other major stakeholders. In particular, the Treasury co-chairs the Money Laundering Advisory Committee (MLAC) with the Home Office, which provides a forum for Government, industry, consumer representatives and law enforcement agencies to develop a strategic approach to tackling money laundering in the UK.
EU Money Laundering Directive
Following the revision of the Financial Action Task Force (FATF) standards on anti money laundering and counter terrorist financing and a review of implementation of the EU Directive by Member States, the EU has been preparing to the revise the EU Directive on the prevention of money laundering and terrorist financing. The European Commission published a report on the application of the Directive in April 2012.
Supervision and guidance
The Treasury is responsible for appointing supervisors to monitor their respective sectors and for the Regulations which set out their role. In order to improve the transparency and accountability of supervision and to encourage good practice, the Treasury has worked with supervisors to develop an annual report on anti money laundering and counter terrorist finance supervision, the first of which was published in November 2011.
There are a number of industry and Government bodies responsible for providing advice to businesses and ensuring compliance with the Regulations. The Financial Services Authority (FSA) has produced guidance to help businesses identify their supervisory authority in the event of uncertainty. The Treasury approves guidance written by industry to help businesses understand how they should implement the Regulations in practice. Courts must take into account whether an individual followed approved guidance notes when making decisions in relation to suspected money laundering.
The Money Laundering Advisory Committee
The Money Laundering Advisory Committee was established in 2002. The Committee provides an advisory role to Government to inform evidence-based policy making. Members include representatives from law enforcement, Government, industry and regulators.
The Committee plays an important role in reviewing industry guidance before it is approved by the Treasury. This is written by industry to help businesses understand how they should implement the Regulations in practice. Courts must take into account whether an individual followed approved guidance notes when making decisions in relation to suspected money laundering.The Committee is co-chaired by the Treasury and the Home Office.
For more information about the Committee please contact the Anti-Money Laundering Branch at the Treasury at email@example.com
The links and information below will be helpful to businesses and may also be of interest to consumers and others.
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