The fight against money laundering and terrorism financing is a top priority for the UK, and to strengthen the country’s anti-money laundering and counter-terrorism financing (AML/CTF) supervisory system, HM Treasury has initiated an open consultation on potential reforms. This consultation is a crucial opportunity for firms to contribute their views and shape the future of AML/CTF supervision. With the consultation closing on 30th September 2023, it’s essential for businesses to participate and make their voices heard.
The current AML/CTF supervisory system
The existing AML/CTF supervisory system consists of three statutory supervisors – the Financial Conduct Authority, the Gambling Commission, and HMRC – along with 22 professional body supervisors (PBSs) responsible for overseeing the legal and accountancy sectors. These supervisors ensure compliance with the Money Laundering Regulations (MLRs), enforce the regulations when breached, and uphold the integrity of regulated businesses through management role assessments.
The need for reform
In the 2022 Review of the UK’s AML/CTF regulatory and supervisory regime, it was acknowledged that while improvements have been made, certain weaknesses in supervision require attention through structural reforms. Building on this review, the consultation presents four potential models for the future AML/CTF supervisory system, aiming to address the identified weaknesses and enhance effectiveness.
Have your say
As part of this open consultation, HM Treasury is actively seeking input from all stakeholders, including firms subject to AML/CTF regulations. Your participation is vital in shaping the future of AML/CTF supervision. The consultation does not advocate for a specific model but instead invites your views on the potential benefits and drawbacks of each proposed reform model. Additionally, the consultation seeks input on expanding requirements related to sanctions compliance for supervisors and regulated populations.
To ensure your voice is heard, HM Treasury has provided a secure survey where you can share your insights and opinions on the proposed reforms. The survey can be accessed at: https://www.smartsurvey.co.uk/s/S2S0O1/. Alternatively, you can send your responses directly to Anti-MoneyLaunderingBranch@hmtreasury.gov.uk.
The time to influence AML/CTF supervision reform is now. By taking part in the consultation and sharing your expertise, you have an opportunity to contribute to a more robust and effective AML/CTF regulatory landscape. Participate in the survey before the consultation closes on 30th September 2023.