FAQs
National Crime Agency (NCA) - the NCA is the UK's law enforcement agency responsible for leading the fight against serious and organised crime, including money laundering. It works closely with other regulators and law enforcement agencies to combat financial crimes.
Financial Reporting Council (FRC) - the FRC is responsible for setting auditing and ethical standards in the UK, including regulations related to AML compliance for auditors.
Crown Prosecution Service (CPS) - the CPS is the principal public prosecuting agency in England and Wales. It works in collaboration with other law enforcement agencies to investigate and prosecute money laundering offences.
Financial Conduct Authority (FCA) - the FCA is the main regulatory body responsible for overseeing and regulating financial services firms and markets in the UK. It regulates a wide range of financial institutions, including banks, building societies, credit unions, investment firms, insurance companies, and certain types of payment service providers.
Her Majesty's Revenue and Customs (HMRC) - the HMRC is the UK's tax authority, and it also plays a role in combating money laundering. HMRC supervises certain sectors that are considered at risk for money laundering, including money service businesses, high-value dealers, and trust or company service providers.
Solicitors Regulation Authority (SRA) - the SRA is the regulatory body for solicitors and law firms in England and Wales. It sets standards and regulations for solicitors, including obligations related to preventing money laundering and terrorist financing.
Institute of Chartered Accountants in England and Wales (ICAEW) - the ICAEW is a professional accountancy body that regulates and sets standards for chartered accountants in England and Wales. It provides guidance and regulations related to anti-money laundering measures for its members.
Association of Chartered Certified Accountants (ACCA) - the ACCA is a global professional accountancy body that sets AML regulations and guidelines for its members operating in the UK.
Gambling Commission - the Gambling Commission is responsible for regulating and overseeing the gambling industry in the UK. It ensures that gambling operators, including casinos, online gambling platforms, and betting shops, adhere to anti-money laundering requirements.
Covered entities, including banks, financial institutions, money remitters, lawyers, accountants, estate agents, and other relevant businesses, are required to establish and implement risk-based CDD measures. This includes verifying the identity of customers, obtaining beneficial ownership information, and assessing the risk associated with each customer.
In cases where there is a higher risk of money laundering or terrorism financing, such as when dealing with politically exposed persons (PEPs) or high-risk jurisdictions, covered entities are required to apply enhanced due diligence measures. This may include obtaining additional information and conducting ongoing monitoring of the business relationship.
Reporting entities must report any knowledge, suspicion, or reasonable grounds for knowledge or suspicion of money laundering or terrorism financing to the National Crime Agency (NCA). The reports should be made promptly when suspicion arises.
Reporting entities must maintain records of transactions, customer identification information, and supporting documentation for at least five years from the date of the last transaction. These records should be readily available for examination by regulatory authorities.
A Risk Assessment is a Reporting Entity’s foundational document which assesses the risks and vulnerabilities of being exposed to money laundering or terrorist financing.
Reporting entities are expected to establish and maintain effective AML/CFT compliance programs. This includes implementing internal policies, procedures, and controls to detect, prevent, and report money laundering and terrorism financing activities. Staff training and regular independent audits are also important components of these programs.