United Kingdom: Financial Sector Assessment Program-Some Forward Looking Cross-Sectoral Issues
IMF Staff Country Reports, April 8, 2022
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- United Kingdom: Financial Sector Assessment Program-Some Forward Looking Cross-Sectoral Issues
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Bibliographic details
- Published: April 8, 2022
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400206771.002
Summary
- The United Kingdom faces significant money laundering threats from foreign criminal proceeds owing to its status as a global financial center.
- The authorities estimated the realistic possibility of hundreds of billions of pounds of illicit proceeds being laundered in their jurisdiction.
- This technical note (TN) focuses on key aspects of the United Kingdom’s anti-money laundering and countering the financing of terrorism (AML/CFT) regime: risk-based AML/CFT supervision, entity transparency and international cooperation.
Principal money laundering threats and sources
- Illicit proceeds from foreign crimes, including:
- transnational organized crime,
- overseas corruption,
- tax crimes.
- Some Crown Dependencies (CDs) and British Overseas Territories (BOTs) have featured in U.K. money laundering investigations.
- Emerging risks include cryptoassets.
High-risk sectors and service providers
- Financial services.
- Trust and company service providers (TCSPs).
- Accountancy sector.
- Legal sector.
Contextual drivers of risk
- Brexit has an impact upon the money laundering risks in the United Kingdom.
- The COVID pandemic has an impact upon the money laundering risks in the United Kingdom.
Authorities’ assessment capacity and recommended enhancements
- The authorities have demonstrated a deep and robust experience in assessing and understanding their ML/TF risks.
- Leveraging technology tools such as big data and machine learning to analyze cross-border payments may add further dimension to their risk assessments.
Focus areas of the technical note (TN)
- Risk-based AML/CFT supervision.
- Entity transparency.
- International cooperation.
United Kingdom: Financial Sector Assessment Program-Some Forward Looking Cross-Sectoral Issues (IMF Staff Country Reports 2022, Issue 108, Pages: 69).
Content in this bundle
- 1. Post-Brexit AML/CFT Legal Framework