Anti-money laundering in the United Kingdom: new directions for a more effective regime

Abstract

Purpose

This paper aims to provide a more nuanced understanding of the effectiveness of the anti-money laundering (AML) regime in the UK and explore opportunities to improve policy and performance.

Design/methodology/approach

Qualitative research design using semi-structured interviews and a focus group with practitioners from both public and private sectors.

Findings

This paper identifies preventive measures are underfunded by the public sector; there is a disconnect between the regulatory requirement and the regulators’ supervisory approach leading to the ineffective application of the risk-based approach; and authorities have limited ability to stop low-utility reports. Increased collaboration across institutions and sectors, better utilisation of innovative technologies and a sustainable funding plan are needed to drive a collective response to money laundering.

Research limitations/implications

Few practitioners in the industry have the knowledge and expertise to discuss the topic at a strategic level and participants were limited (n = 8).

Practical implications

This paper adds to the growing corpus of research showing that the AML regime in the UK is ineffective and needs reform.

Social implications

This paper encourages practitioners to improve the AML regime, this research contributes to the reform of the existing measures against financial crime.

Originality/value

This paper presents new data from AML practitioners to provide a better understanding of the limitations of the AML regime in the UK.

Citation

Pontes, R., Lewis, N., McFarlane, P. and Craig, P. (2022), "Anti-money laundering in the United Kingdom: new directions for a more effective regime", Journal of Money Laundering Control, Vol. 25 No. 2, pp. 401-413. https://doi.org/10.1108/JMLC-04-2021-0041