Businesses such as banks, estate agents, accountants and payment
firms will have to carry out stringent and targeted checks to
make sure that money changing hands is from a legitimate source
and will not be used to fund terror acts.
Serious and organised crime costs Britain at least £24 billion
every year, and recent attacks demonstrate the importance of a
strong toolkit to prevent terrorist atrocities. Although the vast
majority of businesses are vigilant, these new rules will ensure
that they are not abused by criminals or terrorists looking to
move funds or obscure assets.
The rules will improve the quality of the checks. They ensure
that businesses can spot suspicious activity and report it,
enabling the police to act swiftly and decisively to prevent
corruption or terrorist attacks.
The Economic Secretary to the Treasury, , said:
We are cracking down on terrorists and criminals funnelling
money through our financial system.
Terrorist financing and money laundering are significant threat
to our national security, and we are determined to make the UK
a hostile environment for illicit finance.
These new rules will tighten our defences, protect the
integrity of our financial system and help protect the British
public from terror attacks and criminal activities.
The partnership between the banking sector and law enforcement is
vital in limiting abuse of the financial system by terrorists and
criminals. In the recent terrorist attacks in the UK, major UK
banks provided 24 hour support for an extended period to provide
critical financial intelligence to support law enforcement
partners.
These
regulations implement the EU 4th Money Laundering
Directive and complement work across government to strengthen our
defences and deliver on the 2016 Action Plan for anti-money
laundering and counter-terrorist finance.
This includes the Criminal Finances Act, which will give law
enforcement further capabilities and powers to recover the
proceeds of crime, tackle money laundering, tax evasion and
corruption, and combat the financing of terrorism.
