Anti-money laundering in the United Kingdom: new directions for a more effective regime
| DOI | https://doi.org/10.1108/JMLC-04-2021-0041 |
| Published date | 25 August 2021 |
| Date | 25 August 2021 |
| Pages | 401-413 |
| Subject Matter | Accounting & finance,Financial risk/company failure,Financial compliance/regulation,Financial crime |
| Author | Rafael Pontes,Nick Lewis,Paul McFarlane,Patrick Craig |
Anti-money laundering in the
United Kingdom: new directions
for a more effective regime
Rafael Pontes
EY, London, UK
Nick Lewis
Standard Chartered, London, UK
Paul McFarlane
UCL, London, UK, and
Patrick Craig
EY, London, UK
Abstract
Purpose –This paper aims to providea more nuanced understanding of the effectiveness of the anti-money
laundering(AML) regime in the UK and explore opportunities to improve policy and performance.
Design/methodology/approach –Qualitative research designusing semi-structured interviews and a
focus group with practitionersfrom both public and private sectors.
Findings –This paper identifies preventive measures are underfunded by the public sector; there is a
disconnect between the regulatory requirement and the regulators’supervisory approach leading to the
ineffective application of the risk-based approach; and authorities have limited ability to stop low-utility
reports. Increased collaboration across institutions and sectors, better utilisation of innovative technologies
and a sustainablefunding plan are needed to drive a collective response to money laundering.
Research limitations/implications –Few practitioners in the industry have the knowledge and
expertiseto discuss the topic at a strategic level and participantswere limited (n= 8).
Practical implications –This paper adds to the growing corpus of research showing that the AML
regime in the UK is ineffective and needs reform.
Social implications –This paper encourages practitioners to improve the AML regime, this research
contributesto the reform of the existing measures against financial crime.
Originality/value –This paper presents new data from AML practitioners to provide a better
understandingof the limitations of the AML regime in the UK.
Keywords Effectiveness, Compliance, Financial crime, Organised crime, Money-laundering,
Economic crime
Paper type Research paper
Introduction
Money laundering is an intangible process used to disguise the unlawful origin of profits
generated by criminal activities. While perceived to be a victimless crime, it is most often
connected to a range of violent and exploitativecrimes, such as large scale drug dealing and
The views reflected in this article are the views of the authors and do not necessarily reflect the views
of Standard Chartered, the global EY organisation or its member firms.
Anti-money
laundering
401
Journalof Money Laundering
Control
Vol.25 No. 2, 2022
pp. 401-413
© Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-04-2021-0041
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