Government to review anti-money laundering system

Man asking questions
By Jeremy Clarke, Practice Support Specialist

7 September 2015

The government has launched a review of its current system to improve the effectiveness of the rules designed to prevent money laundering and terrorist financing, as part of its Cutting Red Tape programme.

Businesses have expressed concerns that current guidance, rules and proof of identity requirements can be unnecessarily cumbersome and complicated. Inconsistency and confusion over how rules are applied leads to a less effective regime, which is perceived to disproportionately affect legitimate businesses.

The review will look at the implementation of legislation and activity carried out under The Money Laundering Regulations 2007 by national supervisors including the Financial Conduct Authority and HMRC. ICAS is a supervisory authority under Schedule 3 to the Money Laundering Regulations 2007.

As well as identifying where more clarity is needed for businesses, the review will seek to identify where the activity of regulators, such as ICAS, could be made more efficient and effective.

It seeks to improve compliance by identifying aspects of the supervisory regime that appear to businesses in the regulated sector to be ineffective, unclear, unnecessarily cumbersome, conflicting or confusing.

It is not the intention of the review to weaken or undermine very necessary controls, and it will not cover the responsibilities associated with the requirement to report suspicious activity to the National Crime Agency through the Suspicious Activity Report regime.

The review is seeking a wide range of evidence, including:

  • whether current guidance meets businesses needs
  • the effectiveness and proportionality of supervisors' approach to supervision and enforcement
  • where and how supervision and enforcement is not proportionate to the risks posed
  • any examples of good practice that could help businesses meet their obligations and might be replicated elsewhere

If you have any comments, you can email or submit them direct to the Review via the Cutting Red Tape website

The consultation is open until 23 October 2015.


  • Practice hub

Previous Page