ANTI-MONEY LAUNDERING

Anti-Money Laundering Briefing Paper

Anti-Money Laundering Briefing Paper

Introduction

Money laundering is the act of disguising the procedures of unlawful activities so that they could be apparent from legitimate activities and sources. This attempt may take several forms and specifically takes place in three different strategies such as placement, layering, and integration. Though, this act of money laundering is most of the times associated with drug trafficking but a lot of crimes are equated with this act. Such crimes include financial frauds, alien smuggling, computer crimes, overseas official corruption, illegal gambling, violations of exchange control, illegal sales of arms, and terrorist financing. The measurement of the current scale of money laundering is not an easy task, just the World Bank and IMF measured the exact volume of money laundering that is as 3% to 5% of GDP at international level. Another terminology related to it is terrorism financing which is a form of financial crime that utilises funds for supporting the activities, causes, or agenda of a terrorist organization. The funds generated may be taken as legitimate sources, for instance, donations or charities from supporters and also taken as criminal sources, for instance, weapons smuggling, drug trading, kidnapping, fraud, and extortion of unlawful conducts. In this briefing paper, there will be a description about the anti-money laundering that how an independent assessment is conducted in 'regulated sectors' in terms of its regulatory and legal requirements and best practices for identifying and reporting the suspicious activities in the context of money laundering and terrorist financing. The paper will focus on improving the knowledge and understanding of AML/CTF, as well as will help the MLRO for using the content for practically enhancing the suspicious activity reporting systems & controls within the company.

Overview of the Anti-Money Laundering in UK

The ant-money laundering regime of United Kingdom has evolved greatly since the year 1993 when there was a commencement of the foremost European attempt for combating money laundering activities. Any individual or a business firm that comes into association with the financial system will have come across the measure of anti-money laundering to some degree till now as the most straightforward example of it is the need for providing the proof of identity. The interaction of several different regulatory and legislative requirements may be complicated to understand, specifically for those who do not possess the fresh experience of applying such needs.

It is supportive for understanding the means of money laundering as the legislations defines it by referencing to the offences of crime which are committed by money launderers. Some of the primary legal offences are comprised of any attempts of incitement or conspiracy for committing any act or offence that constitutes abetting, aiding, procuring or counselling as well as the conducts that would add to any offence that is taken place in the premises of United Kingdom. Basically, the anti-money laundering system of UK does not directly focus on crime prevention, but also, it puts emphasis on restricting the criminals from taking pleasure in ...