The UK is looking to cut red tape in the government’s anti-money laundering (AML) and counter terrorist financing (CFT) regimes, according to an official statement.
The move is part of business secretary Sajid Javid’s drive to simplify bureaucracy in the wider business environment, but he appears very keen to reduce complexity in AML and CFT processes to ensure the rules are not “unintentionally holding back” British business and to lessen the risks of de-banking.
The UK’s compliance requirements have come under criticism for their unintended impact on charities and non-governmental organisations that have been consigned to the ranks of the “de-banked”.
In 2014, the remittance company Dahabshiil mounted a successful legal challenge against Barclays’ decision to close its account.
The bank reversed its decision while the UK government responded by working with the World Bank to create safer corridors for the flow of remittances which could be subjected to robust checks to trace the funds.
Javid insists that the review should not weaken the UK’s fight against illicit financial flows.
Further information in relation to the review on enhancing the effectiveness of the AML and CFT regime announced in the Javid’s plans will be provided in due course according to government officials.
The official UK government statement on its AML and CFT review can be found here.
Categories: Trade Based Financial crimes News