Anti-money laundering

This page contains the following - 

• Background
• Money laundering regulations 2007
• Joint Money Laundering Steering Group

Background 

Money laundering is an area of considerable concern to the UK, as often criminals use retail financial services such as mortgage credit to launder money raised from criminal activity for broader financing such as organised crime and international terrorism. 

In concert with efforts in the broader financial services community, mortgage lenders have to put in place systems and controls to detect and prevent the use of residential mortgages by criminals for these purposes, and report any suspicious activity to the authorities.

Further to this, the CML has been active in work with the government and industry in anti-money laundering efforts. These include:

• preparing for the latest European money laundering regulations which the government will be implementing in the UK through 2007;
• working with other industry trade associations in the Joint Money Laundering Steering Group;
• improving reporting mechanisms between the industry and the government; and
• helping members improve their anti-money laundering practices, through training and other initiatives. 

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Money laundering regulations 2007

On 22 January 2007, HM Treasury published its draft money laundering regulations 2007 for consultation. These regulations will repeal and replace the money laundering regulations 2003, and implement the requirements of the third money laundering firective. This follows from the Treasury's earlier consultation document on implementing the Directive which closed in October. 

This latest document includes an accompanying narrative for the draft money laundering regulations 2007 that summarises the proposals and questions in the previous consultation, the responses and the resulting policy. For each policy discussed there is a cross reference to the relevant regulation. The document also includes a table summary of responses to the previous consultation document and an updated regulatory impact assessment (RIA).

The statutory instrument enabling the new regulations was laid before parliament on the 25 July 2007, and will be enacted from the 15 December 2007. The statutory instrument and a two-page summary of the regulations are available from the HMT website.

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Joint Money Laundering Steering Group

The CML is a member of the Joint Money Laundering Steering Group (JMLSG), a group comprised of seventeen UK financial services trade associations. Its aims are threefold:

• to promulgate anti-money laundering good practice around the industry;
• to act as a conduit with which the government anti-money laundering organisations such as the FSA and SOCA can reach the industry; and
• to give practical assistance in interpreting the UK's money laundering regulations through its guidance notes.

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