Global Government Responses to Money Laundering

International Recommendations and Requirements

Within this group, there are two types of international organisations that seek to combat financial crime:

1. Working groups and task forces, which seek to coordinate rules and regulations amongst governments and regional intergovernmental bodies such as the 40 Recommendations of the FATF.
2. Regional economic intergovernmental political and economic unions which can adopt rules that bind each of their member states such as the European Union.

National Legislation

Every economically developed country has adopted, to varying degrees, financial crime laws. The UK, the primary relevant criminal legislation is contained in:

• The Terrorism Act 2000 and the Proceeds of Crime Act 2002\
• UK Money Laundering Regulations 2017 and the Money Laundering and Terrorist Financing (Amendment) Regulations 2019
• HM Treasury Sanctions Notices, and
• UK Bribery Act of 2010

National and Supervisory Regulatory Regimes

Most nations have regulators that will issue guidance that assists financial institutions in setting up policies and procedures that will assist in their and their employee’s complying with financial crime law such as the FCA in the UK.  The FCA handbook sets forth the requirements that firms must follow regarding systems and controls to prevent financial crime.

UK Industry and EU Guidance

In some countries, industry groups provide more tailored and practical advice to their members. The Joint Money Laundering Steering Group (JMLSG) in the UK has published Guidance Notes. The JMLSG has been formed by trade associations from several financial industries, including banks, building societies, insurance, venture capital and financial advisors. Although this is not legally binding, it is approved by the UK Treasury as a baseline for compliance for firms. In EU countries, guidance comes from EU supervisory bodies such as: The European Banking Authority (EBA), The European Securities and Markets Authority (ESMA) and The European Insurance and Occupational Pensions Authority (EIOPA)