Govt to cut anti-money laundering red tape for banks

The Government is looking to reduce the burden of the anti-money laundering regime on banks.

It has launched a review which aims to improve the effectiveness of anti-money laundering and terrorist financing rules as part of its drive to cut red tape.

The Government says businesses have expressed concerns that the rules and proof of identity requirements can be “unnecessarily cumbersome and complicated”.

It says there is also confusion and inconsistency over how the regime should be applied.

Business secretary Sajid Javid says: “We are committed to saving businesses a further £10bn in red tape.

“This new review is about making sure the rules we have to protect our strong financial services industry from abuse are not unintentionally holding back new and existing British business. I want firms to come forward and tell us where regulation is unclear or its enforcement ineffective.”

The review is seeking evidence on the approach of the FCA and HM Revenue & Customs in supervising the anti-money laundering regime, as well as examples of where enforcement and supervision is not proportionate to the risks posed.

The call for evidence closes on 23 October.