These regulations aim to detect and prevent money laundering and terrorist financing in the UK.

• Customer Due Diligence: Requires institutions to verify the identity of customers.
• Reporting Obligations: Mandates reporting of suspicious transactions.
• Risk Assessments: Institutions must evaluate and address money laundering risks.

The most recent updates align with the EU’s Fifth AML Directive and came into force in 2020.

• Legal Penalties: Institutions face fines or sanctions for breaches.
• Reputational Harm: Non-compliance may erode customer trust.
• Operational Risks: Increased regulatory scrutiny may disrupt operations.

• Risk Mitigation: Reduces exposure to financial crime.
• Consumer Trust: Enhances confidence in financial institutions.
• Regulatory Alignment: Demonstrates adherence to UK and global standards.