Money laundering is the process used by criminals to disguise the origin and ownership of the proceeds of their criminal activities to avoid prosecution, conviction and confiscation. Terrorist financing refers to the use of funds or other assets whether legally or illegally obtained to support terrorism.
In the UK, criminal offences relating to money laundering and terrorist financing are laid down in the Proceeds of Crime Act 2002 and the Terrorism Act 2000 and include:
- Failure to disclose/reporting requirements in respect of suspicious activities/transactions;
- Tipping off offences: ensuring that law enforcement is not hampered in its investigations by the subject of the suspicion becoming aware of the allegations.
Market Participants should ensure suspicious transactions are reported to the National Crime Agency (NCA) and ensure compliance with the tipping off offence.
There are also due diligence and know your customers obligations under the UK’s Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 for managing agents underwriting certain types of life business such as group life and other forms of long terms insurance.
View the Joint Money Laundering Steering Group guidance