The United Kingdom’s AML/CTF supervisors
Under POCA (primary AML regulation) and the Regulations, the FCA, HMRC, the Gambling Commision, and 22 other professional organisations operate as supervisory authorities.
FCA is the major financial services regulator in the United Kingdom, with power over banks, building societies, credit unions, and other financial institutions. FCA is responsible for ensuring that AML standards are met. In partnership with other law enforcement agencies and authorities, such as the Crown Prosecution Service (CPS), FCA has the jurisdiction to investigate money laundering and terrorism financing offences.
HMRC, working along with FCA, is in responsibility of investigating money laundering claims. HMRC provides anti-money laundering guidance, including customer due diligence and transaction monitoring compliance requirements, as well as the requirement for generating an anti-money laundering policy statement.
Additionally, NCA (National Crime Agency) and SFO (Serious Fraud Office) have the power to enforce money laundering regulations, arrest and can seek warrants and court orders, freeze and confiscate assets that they suspect are involved in money laundering, terrorism financing or other criminal activities.
The Office for Professional Body Anti-Money Laundering Supervision (OMBAS) is in charge of increasing the consistency of AML supervision by professional bodies.
How do you comply with AML/CTF obligations in the United Kingdom?
Regulated entities are obligated to approach the threats they face in a risk-based approach. The risk-based approach should include the following components:
Risk assessment to identify and assess the risk of money laundering and terrorism financing to a company's operations
An efficient compliance programme in place for AML/CTF controls and procedures for risk management
Customer Due Diligence procedures
AML/CTF training for the employees
Designation of a Money Laundering Reporting Officer
What are my AML/CTF reporting obligations?
Those entities regulated under POCA have the obligation to report suspicious activity whenever:
The person knows or suspects that another person is involved in money laundering, or has reasonable grounds to believe that another person is involved in money laundering.
The knowledge or suspicion is based on information obtained in the course of conducting business in the regulated industry.
The person can identify the other person or the whereabouts of the laundered property, or they believe or it is reasonable to expect them to believe that the information will or may help in identifying that other person or the whereabouts of any of the laundered property.
