An evaluation of customer due diligence and related anti-money laundering measures in the United Kingdom

• Published in: Journal of money laundering control Vol. 26; no. 7; pp. 127 - 137
• Main Authors: Chitimira, Howard, Munedzi, Sharon
• Format: Journal Article
• Language: English
• Published: London Emerald Publishing Limited 18-12-2023; Emerald Group Publishing Limited
• Subjects: Drug trafficking; Due diligence; Enforcement; Fines & penalties; Money laundering; Organized crime; Provisions; Regulation of financial institutions; Securities markets; United Kingdom > UK; Anti-money laundering; Regulation; Customer due diligence; Measures
• ISSN: 1368-5201; 1758-7808; 1368-5201
• DOI: 10.1108/JMLC-01-2023-0004

Purpose
Customer due diligence measures that are employed in the United Kingdom (UK) to detect and combat money laundering are discussed. The UK adopted a progressive regulatory and enforcement framework to combat money laundering which relies, inter alia, on the use of customer due diligence measures to regulate and curb the occurrence of money laundering activities in its financial institutions and financial markets. However, other regulatory measures that could have contributed to the effective combating money laundering in the UK will not be explored in detail since the article is focused on the reliance and use of customer due diligence measures to curb money laundering activities. Accordingly, the strength, flaws and weaknesses of the UK anti-money laundering regulatory and enforcement framework are examined. Lastly, possible recommendations to address such flaws and weaknesses are provided.
Design/methodology/approach
The paper discusses customer due diligence measures that are used in the UK to detect and combat money laundering.
Findings
It is hoped that policymakers and other relevant persons will use the recommendations provided in the paper to enhance the curbing of money laundering in the UK.
Research limitations/implications
The paper does not provide empirical research.
Practical implications
The study is useful to all policymakers, lawyers, law students and regulatory bodies in the UK.
Social implications
The study seeks to curb money laundering in the UK society globally.
Originality/value
The study is original research on the use of customer due diligence measures to detect and combat money laundering in the UK.