Journal of Financial Crime (2020)

Running head: IMPACT OF THE U.K COUNTER TERRORISM FINANCIAL
LEGISLATION
IMPACT OF THE U.K COUNTER TERRORISM FINANCIAL LEGISLATION
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IMPACT OF THE U.K COUNTER TERRORISM FINANCIAL LEGISLATION1
Table of Contents
Answer B....................................................................................................................................2
References................................................................................................................................13

IMPACT OF THE U.K COUNTER TERRORISM FINANCIAL LEGISLATION2
Answer B
Money laundering is an unlawful process of masking money, which is obtained
unlawfully and passing it through the system of banking or any commercial transactions. The
process returns the money to the launder illegally1. To control and stop money laundering, the
United Kingdom has implemented various laws such as money laundering act, terrorist act
2000, and other laws 2.
Anti-terrorism legislation laws have the primary aim of fighting and eleminating
terrorism. Anti-terrorism law includes various amendments allowing the state to evade its
legislation when fighting aggressive terrorism-related crimes 3. Anti-terrorism legislation in
the United Kingdom is centered on Terrorism act 2000. Besides, U.K had implemented
various laws to prevent money laundering. These legislations are made to fight terrorism in
the U.K. The laws which have an impact on the United Kingdom’ anti-terrorism is given
below which will clarify the concepts of the effect of counter-terrorism financial legislation
in U.K. Europe Union members stated that it is needed to prohibit certain activities by the
implementation of these laws. Prohibit activities includes money laundering and terrorism
financing. The U.K. has implemented the Third Money Laundering Directive partly over the
1 Hicks, David C., and Adam Graycar. "Money laundering." Cambridge University Press,
2019.
2 Hopkins, Matt, and Nikki Shelton. "Identifying Money Laundering Risk in the United
Kingdom: Observations from National Risk Assessments and a Proposed Alternative
Methodology." European Journal on Criminal Policy and Research 25.1 (2019): 63-82.
3 Min, Jiang. "The Boundary of Anti-Terrorism Legislation of Criminal Law." Tribune of
Political Science and Law, Beijing 35.5 (2017): 79-93.

IMPACT OF THE U.K COUNTER TERRORISM FINANCIAL LEGISLATION3
Money Laundering regulation 2007 and partly through the Proceeds of Crime Act 4. These
legislations apply to both individuals and organizations, though the corporate are not
generally liable for the guilt related to money laundering.
Money laundering regulation 2007
The money-laundering act 2007 is replaced with 2015, which places requirements on
relevant persons to stop and detect money laundering and terrorist financing in the country.
Persons subject to the Money Laundering regulation 2007 must have rights of system and
control in place to recognise, manage, and mitigate risk related to money laundering 5. The
primary purpose of this act is to notice and prevent money laundering and terrorist financing
in the United Kingdom. The MLR includes the requirements of the relevant persons to asses
risk and conducts an suitable level of customer due to diligence. The person must have
policies and procedures in place to manage and mitigate the risk of money laundering.
According to Money Laundering act 2007, business institutions, auditors, accountants must
create and maintain appropriate policies and procedures, which will be helpful to counter
money laundering 6. These policies should be related to
 The business should monitor and scrutinize the transactions undertaken in the
business relationship. Along with this, it should identify the sources of funds and
transactions and keep documents of these. This should be done for the purpose of
customer due diligence up to date.
4 Alexander, Richard Charles Henry. Insider dealing and money laundering in the EU: law
and regulation. Routledge, 2016.
5 Zagaris, Bruce, and Ibtissem Lassoued. "Money Laundering and Bank Secrecy." IELR 35
(2019): 3.
6 Alldridge, Peter. What went wrong with money laundering law?. Springer, 2016.