New Anti-Money Laundering Bill could have limited effect

Author: Olly Jackson | Published: 16 May 2018

A new Sanctions and Anti-Money Laundering Bill is currently going through Parliament. This is intended to address the vast swathes of money laundering and adopt a framework to implement sanctions and anti-money laundering regulations once the UK leads the European Union. As a result of the legislation, companies can no longer just do standard KYC checks but must ensure they trace and evidence the ultimate beneficiary of British overseas territories.

According to Matthew Banham, part of Dechert’s corruption, fraud and financial services regulatory enforcement team, "This will likely increase the risks of UK companies doing business with companies that flee from British Overseas Territories to offshore havens unaffected by British legislation".

These offshore havens could have even less transparency than the British overseas territories and therefore could make the problem even worse than previously.

Tracing and evidencing the ultimate beneficiary of British overseas territories becomes difficult with companies and...