Slipping Through the Net: The FCA's Approach to Lessening the Incidence of Money Laundering in the UK

Abstract

The financial services sector provides a crucial infrastructure for the promotion of wealth and innovation in the UK. This attractive infrastructure also appeals to criminals looking to launder the gains of their illicit activities. To this end, it is important to strengthen the regulatory approach to ensure the UK financial services continue to attract and appeal to investors looking to do legitimate business. The paper analyses the UK money laundering regime, highlighting specific challenging areas. The paper investigates the role of politically exposed persons and the use of corporate structures in promoting money laundering. In this context, it also becomes crucial to investigate the role of financial institutions and the sufficiency of their governance approach in lessening the incidence of money laundering. The paper recommends steps that can be employed to lessen the incidence of money laundering in the UK.

Keywords: money laundering, politically exposed persons, financial conduct authority, beneficial ownership

JEL Classification: K20