Action plan for anti-money laundering and counter-terrorist finance

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June 1 2016

The Home Office and HM Treasury have published an action plan for anti-money laundering and counter-terrorist finance. As part of the action plan, the government is seeking views on potential changes to legislation and have also issued a Call for Information: Anti-Money Laundering Supervisory Regime. Both consultations close on 2 June.

The government states that the three priorities of the action plan are:

  • create new legal powers and capabilities for law enforcement agencies
  • reform the supervisory regime
  • increase international reach by working with international groups such as the G20 and Financial Action Task Force (FATF).

The action plan contains a number of proposals on which the government wishes to consult, as they will involve potential changes to legislation. These are:

  • removal of the Suspicious Activity Reports (SARs) consent regime
  • new powers for law enforcement agencies to require reporters to take actions in relation to their customers, and to request further information on SARs
  • data sharing between private sector organisations to tackle money laundering and terrorist financing
  • the creation of a new power to require individuals to declare their sources of wealth
  • the creation of a linked power to seek forfeiture of assets if they fail to declare their sources of wealth
  • the creation of an illicit enrichment offence
  • a power to designate an entity as being of money laundering concern
  • development of a new power to allow money held in bank accounts to be swiftly seized and forfeited
  • changes to the civil recovery powers to allow administrative seizure up to £100,000.