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RUSI Experts React to UK’s Financial Action Task Force Mutual Evaluation Report

News, 7 December 2018
Centre for Financial Crime and Security Studies, AML/CTF, UK
UK still central to global money laundering schemes, despite positive evaluation from international financial watchdog.

The Financial Action Task Force has released its evaluation of the UK’s anti-money laundering and counter terrorist financing efforts, the first such review since 2007.

Tom Keatinge, Director of RUSI’s Centre for Financial Crime and Security Studies said:

‘The UK has achieved top-of-the-class marks from the FATF – government officials will be both surprised and relieved.  However, the fact that the UK remains central to global money laundering schemes brings into question the relevance of this evaluation.  Furthermore, we have cause to question some of the findings in the report, in particular, the assessment in relation to the effective use of financial intelligence by UK law enforcement.

‘Whilst the UK scores highly in most categories--notably its work to counter terrorist financing -- worrying gaps exist, in particular as relates to the capacity and capabilities of the UK’s Financial Intelligence Unit and the ability of the authorities to conduct systematic and strategic assessments of the UK money laundering threat.

‘With the evaluation now complete, there is an open strategic question as to how the UK will tackle the weaknesses highlighted by the, particularly the question of resourcing an adequate criminal justice response.  The recently published Serious and Organised Crime Strategy is long on ambition but much of its content is aspirational and will require a significant investment of funding and resources.

‘Despite the blizzard of initiatives (such as the Joint Money Laundering Taskforce and National Economic Crime Centre) launched over the past few years, government cuts have taken their toll.  For too long the UK has been more effective at taking money off its law enforcement agencies than taking money off criminals.  This has to change if the fight against economic crime is to advance meaningfully.’

Since its formation in 2014, RUSI’s Centre for Financial Crime and Security Studies has closely tracked the activities of the FATF in general and the UK’s preparation for its evaluation in particular:

 

 

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Author

Tom Keatinge
Director, Centre for Financial Crime and Security Studies, RUSI

Tom Keatinge is the Director of the Centre for Financial Crime and Security Studies at RUSI, where his research focuses on matters at... read more

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