Sanctions and AML Insights

The UK's robust AML framework is overseen by multiple regulatory bodies. The Financial Conduct Authority (FCA) sets and enforces AML rules for financial services firms, while HM Revenue & Customs (HMRC) monitors for tax evasion and money laundering. The National Crime Agency (NCA) investigates complex money laundering cases, and the Joint Money Laundering Intelligence Bureau (JMLIB) facilitates information sharing between regulatory bodies. The Financial Intelligence Unit (FIU) acts as a central hub for intelligence on financial crime. Together, these bodies work to protect the UK's financial system from illicit activities.

Transport sanctions, a unique form of sanction regime, have a profound impact on the global transport industry. These sanctions, which control the movement of goods, individuals, and entities, can significantly affect trade and commerce.

OFAC (Office of Foreign Assets Control) is a U.S. government agency responsible for administering and enforcing economic and trade sanctions against foreign countries, entities, and individuals. Credit unions, even those operating outside the U.S., are subject to OFAC regulations if they engage in transactions with U.S. persons or use the U.S. financial system. Non-compliance with OFAC regulations can lead to severe legal consequences, including hefty fines, asset seizures, and even imprisonment.

Jersey is a British Crown Dependency located in the English Channel. It's an island with a population of around 100,000 people. While it's not a country, it has its own government, legal system, and currency. It is also an extremely complex jurisdiction. Jersey's strong financial services sector, particularly in areas like investment funds and wealth management, attracts a significant amount of international capital. This can make it vulnerable to money laundering activities. However, it's important to note that Jersey has taken significant steps to address these risks. It has implemented stringent AML regulations, established specialised agencies to combat money laundering, and cooperated with international organisations like the Financial Action Task Force (FATF).

The UK Export Control Joint Unit (ECJU) is a cornerstone of the Department for Business and Trade. This specialist entity is instrumental in maintaining the integrity of the UK's international trade landscape. Its primary role is to administer and enforce strategic export control measures, ensuring a balanced and responsible approach to business and trade. Functioning as the regulatory linchpin, the ECJU ensures stringent export policies are observed, mitigating risks and bolstering the integrity of the UK's vibrant trade landscape. In essence, it's an unsung hero of the UK's business sphere.

Gibraltar has long been an offshore financial centre, offering various financial services and tax advantages. Its location at the crossroads of Europe and Africa makes it a convenient place for individuals and entities to launder money. It offers easy access to various financial markets and transportation routes. Fortunately Gibraltar has taken steps to combat financial crime.

Hawala is an informal money transfer system that operates outside the traditional banking system. It is a centuries-old practice that is widely used in many parts of the world, particularly in regions where formal financial institutions may be limited or unreliable. On the face of it, hawala makes it easy to transact and opens the financial system up to millions of people who wouldn’t have access otherwise. But there are risks, too. Hawala has been associated with money laundering activities, as it can be used to conceal the source of funds. Let’s take a closer look at the Hawala system.

The Bureau of Industry and Security (BIS) is a component of the United States Department of Commerce. It is responsible for implementing and enforcing export controls for the United States. These controls are designed to protect national security, foreign policy, and economic interests. They also play an important role in sanctions compliance.

In this expert Q&A, learn how to enhance sanctions screening performance with actionable insights on testing, tuning, and configuration.