United Kingdom

New Documents

The Office of Financial Sanctions Implementation in the United Kingdom amended one designation in its sanctions list pertaining to Myanmar.

The United Kingdom’s HM Treasury released two Post-Implementation Review documents concerning its analysis of anti-money laundering and counterterrorist financing policies covering professionals as well as those relating to information on payers. 

News

Enforcement Actions

The United Kingdom’s Financial Conduct Authority imposed a £5.8 million fine on the London, U.K.-based bank for failing to conduct adequate enhanced due diligence when establishing certain business relationships and for failure to implement ongoing enhanced monitoring, and risk-based controls. 

The Financial Conduct Authority penalized the London, U.K.-based insurance broker for failing to have adequate financial control processes in place to prevent millions of pounds in bribery-linked transactions.


Important Facts

  • The U.S. State Department identifies the United Kingdom (U.K.) as a major money laundering jurisdiction. The country’s leading role in European and world finance, size, sophistication and reputation of its financial markets make the U.K. attractive to money launderers. The majority of money laundering is cash-based, in particular cash collections networks, international controls, money services businesses and informal alternative remittance systems. Also, professionals in the legal and accountancy sectors move and launder criminal proceeds. The country is suffering from major gaps in intelligence, especially in relation to high-end money laundering, which is particularly relevant to major frauds and foreign corruption where proceeds are generally held in bank accounts, real estate or other investments rather than cash. The United Kingdom has implemented know your customer and suspicious transaction reporting regulations, as well as enhanced due diligence for foreign politically exposed persons. Although the U.K. adheres to the EU’s Fourth Anti-Money Laundering Directive, it passed the Sanctions and Anti-Money Laundering Act 2018, the legislative basis for the U.K.’s anti-money laundering regime following its planned departure from the European Union.
Source: 2019 International Narcotics Control Strategy Report (INCSR)

Rankings

FATF i | 2013 Methodology

Technical Effectiveness
Compliant : 23 High : 4
Largely Compliant : 15 Substantial : 4
Partially Compliant : 2 Moderate : 3
Non-Compliant : 0 Low : 0

BASEL i

Rank : 116/141
Score : 4.02/10

TRANSPARENCY INTERNATIONAL i

Rank : 12/180
Score : 77/100

Tax Justice Network i

Rank : 12/133
Score : 46/100