UK Government Publishes 2017 National Risk Assessment of Money Laundering and Terrorist Financing

HM Treasury has published a National Risk Assessment of money laundering and terrorist financing for 2017. The 2017 NRA identifies risks that have changed since the first NRA was published in 2015, assesses the UK's current understanding of these risks and discusses the high-risk areas in more detail. The key findings of the 2017 NRA for the financial services sector include:

1. The steps to address the risks of money laundering and terrorist financing to the financial services sector are starting to take effect but the risk profile has not moved significantly yet. However, there is now an increased understanding of the varying risk profiles across different parts of the sector.

2. The risks of money laundering and terrorist financing to the retail banking sector are both high, mostly due to the criminal intent to exploit retail banking products and the increasing speed and volume of transactions.

3. Wholesale banking and capital markets are at a high risk of money laundering but a low risk of terrorist financing. The risk of money laundering arises from correspondent banking, lack of controls and the potential for large sums to be passed through the capital markets.

4. Wealth management and private banking are subject to high money laundering risks, due to exposure to political corruption and tax evasion, but low risks for terrorist financing.

5. The risks posed through the use of digital currencies remains low for both money laundering and counter terrorism.

6. E-money is exposed to a medium degree of risk for both risks.

HM Treasury has not confirmed whether the Government will publish an update to its 2016 Action Plan for AML and CFT as a result of the 2017 NRA.

View the Policy Paper.

View the 2016 Action Plan.