‘DIRTY MONEY’ AND POOR CONTROLS – THE KEY AREAS OF ENFORCEMENT ACTIVITY FOR 2018
The publication of the UK Anti-Corruption Strategy 2017-2022 in December 2017 (Strategy) will motivate regulators and prosecuting agencies to increase attention on individuals and on those regulated entities whose controls fail to detect and prevent financial crime. Alongside the Strategy, significant legislative changes have come into force in the last 12 months, requiring immediate action if regulated entities are to remain compliant with English law and best compliance practice.
The key legislation underpinning the strategy includes the Criminal Finances Act 2017 (CFA), the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017) and the Significant Control (Amendment) Regulations 2017 (SC regulations) (together the new legislation). The new legislation makes it easier for regulators and prosecution agencies to investigate financial crime, creates a new strict liability criminal corporate offence and imposes further regulatory scrutiny on the effectiveness of the controls, which regulated entities must have in place to prevent and detect financial crime.
Regulators and prosecuting agencies, emboldened by the vision of the strategy and their new legislative toolkit, will seek to use their powers with vigour, increasing the number of criminal and regulatory investigations and prosecutions over the coming 12 months.
Apr-Jun 2018 issue