NRA: STRENGTHS: UK AML regime

Question 1

Intro: How well is the UK doing?

Answer 1

The UK can reasonably claim to be doing well among its international peers, but all countries are doing badly in absolute terms.

Overall, innovative approaches are being trialled by the UK and the focus across politics, policy, and law enforcement is welcome.
However, these efforts and money, to date, are taking place within the narrow confines of a system that is failing to deliver for PEP AML.

In fact, it is the very increase in the UK’s activity that has served to highlight that, despite the increased efforts and some notable successes, the system is not producing results in proportion to the size of the problem.

Question 2

Responding to crisis

Answer 2

The UK government has taken a leading role in highlighting the need for asset recovery for the people of Ukraine and supporting international dialogue on that issue.

In response to the Arab Spring and Ukraine crisis, the UK developed a ‘taskforce model’ whereby a range of UK experts from law enforcement, lawyers and prosecution liaison officers can be surged to a particular foreign jurisdiction to support asset recovery proceedings.

Most recently, the NCA and the Metropolitan Police, accompanied by CPS prosecutors, travelled to Ukraine to support these highly complex money laundering and asset recovery investigations.

Question 3

Corporate transparency

Answer 3

The UK has made a commendable step in being the first G20 nation to commit to a public register of company beneficial ownership.

Question 4

Funding for policing and investigations

Answer 4

DFID funding model has ensured that high quality law enforcement expertise from the Metropolitan Police and City of London Police.

However, the geographic focus of these units tends to be countries where the UK has an aid relationship through DFID. As such, many jurisdictions, particularly former Soviet Union states, do not fall within the geographic focus of these units.

Question 5

Well resourced AML compliance in Banking

Answer 5

2005 City of London study estimated that the UK banking sector spends £255 million on AML compliance. Estimates vary but it is -no doubt - a large investment.

Question 6

Non-conviction based asset forteiture

Answer 6

• Proceedings are brought against the asset rather than the individual
• so no need to secure a criminal conviction for the person first