Govt proposes cuts to anti-money laundering duties

The government today published proposals for reforming the anti-money laundering requirements on businesses.

The consultation is based on a review of current requirements set out in the 2007 Money Laundering Regulations, taking into account the responses of businesses.

In its response to the review, the government made two proposals to reform anti-money laundering requirements.

It proposed to remove 24 criminal penalties for businesses which do not have systems and controls in place to prevent money laundering.

Instead, the government proposed allowing a risk-based approach in which businesses make their own assessments of the risk of money lending and tackle it independently.

Civil penalties for failing to carry out anti-money laundering actions will not be cut.

The government also proposed excluding small businesses, such as those with an annual VAT-exclusive turnover of £13,000, from anti-money laundering requirements.

Commercial secretary Lord Sassoon said: "It is essential that the UK's money laundering regulations make the UK a hostile environment for money laundering and terrorist finance, but improvements can be made and we must consider the impact of these regulations on British business.

"We can make the regulations more effective and proportionate by removing a range of criminal penalties on all businesses and by lifting the burdens on the smallest businesses."

The consultation closes on 30 August 2011.