UK’s AML regime “needs to be relaxed”


An expected review by the UK government of anti-money laundering (AML) rules has been welcomed by Chrisol Correia, global head of AML at risk assessment technology group LexisNexis Risk Solutions.

The Chancellor, George Osborne, indicated last month that AML regulations could be amended as part of the government’s productivity plan when he presented his post-election Budget  and published the report ‘Fixing the Foundations: Creating a more prosperous nation’.

We welcome a review of the AML regime by the Chancellor,” said Correia. “Current rules have placed significant operational pressures on the effectiveness of preventing money laundering by placing a huge and often unnecessary reporting burden on banks.

In addition to large fines, banks have endured a series of other AML costs that might do little to prevent criminals from exploiting the financial system to launder the proceeds of crime.

Adhering to the letter and spirit of various AML compliance requirements have greatly affected banks’ effectiveness in managing their AML responsibilities efficiently and productively.

In order for banks to truly manage AML risk in a more meaningful way more must be done to replace low value compliance reporting obligations with measures that focus AML staff and technology on real and present risks.