New Regulations Target Criminal Financing

New regulations came into force on 26th June that will make it harder for terrorists and criminals to move money through the UK financial system.

The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 will require businesses such as banks, estate agents, accountants and payment firms to carry out stringent and targeted checks to make sure that money changing hands is from a legitimate source and will not be used to fund terror acts.

The UK Government highlights that serious and organised crime costs Britain at least £24 billion every year. Although the vast majority of businesses are vigilant, these new rules will ensure that they are not abused by criminals or terrorists looking to move funds or obscure assets.

The new regulations implement the EU 4th Money Laundering Directive and complement work across Government to strengthen the country’s defences and deliver on the 2016 Action Plan for anti-money laundering and counter-terrorist finance.

This includes the Criminal Finances Act, which will give law enforcement further capabilities and powers to recover the proceeds of crime, tackle money laundering, tax evasion and corruption, and combat the financing of terrorism.

“Terrorist financing and money laundering are significant threat to our national security, and we are determined to make the UK a hostile environment for illicit finance,” commented the Economic Secretary to the Treasury, Stephen Barclay. “These new rules will tighten our defences, protect the integrity of our financial system and help protect the British public from terror attacks and criminal activities.”

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Contains public sector information licensed under the Open Government Licence v3.0.