Tuesday, June 18, 2019

English Law Commission Report on Money Laundering

The Law Commission in England has released a report on anti-money laundering measures.

It is estimated that between 0.7 and 1.28% of annual European Union GDP is connected to suspect financial activity.

In 2017 the UK government asked the Law Commission to review limited aspects of the anti-money laundering regime in Part 7 of the Proceeds of Crime Act 2002 and the counter-terrorism financing regime in Part 3 of the Terrorism Act 2000. The Commission was specifically asked to examine ideas for reform of the system of voluntary disclosures known as the 'consent regime'.

The final report makes 19 legislative and non-legislative recommendations to improve the consent regime, including:
  • An advisory board with oversight for the regime, with a remit to oversee the drafting of guidance, to measure the effectiveness of the regime and advise the government on ways to improve it.
  • Retaining the consent regime, subject to amendments to improve effectiveness.
  • Statutory guidance on a number of key legislative concepts underpinning the reporting regime, to assist the regulated sector in complying with their legal obligations. This includes guidance on: suspicion, appropriate consent and arrangements with prior consent and what may amount to a reasonable excuse.
  • Prescribing the form in which suspicious activity is reported, making use of technology to devise an online interactive form.
  • An exemption to allow ringfencing of suspected criminal property by a credit of financial institution. This provides for a more proportionate response to the reporting of (suspected) criminal property.
  • Extending the circumstances in which a reporter may have a reasonable excuse not to make a voluntary disclosure.
  • Further research into the utility of thematic reporting or geographical targeting orders, which remove the reporter’s discretion to assess suspicion.

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posted by Michel-Adrien at 6:50 pm


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