The National Risk Assessment, which is the first of its kind in the UK, found that more could be done to strengthen the UK’s anti-money laundering (AML) and counter-terrorist financing regime, including in the understanding of certain types of money laundering, and particularly of "high-end" money laundering, where the proceeds are often held in bank accounts, real estate or other investments, rather than cash.

The assessment found there was also room for improvement in the consistency of the UK’s supervisory regime, with priority given to combating money laundering by law enforcement agencies and the effectiveness of their response.

As a result of these findings, the government laid out key priorities for its action plan, including:

- Filling intelligence gaps, particularly those associated with high-end money laundering through financial and professional sectors;
- Enhancing law enforcement response;
- Addressing the inconsistencies in the supervisory regime;
- Working with supervisors to boost awareness of money laundering and terrorist financing risks.

“We strongly welcome the government’s AML assessment and action plan. With AML and terrorist crime constantly evolving it is important to stay one step ahead of the criminals by reviewing the present risks and weaknesses of the system, as well as working to understand where future vulnerabilities may lie,” said Chrisol Correia, global head of AML at LexisNexis Risk Solutions.

Separately, the Better Regulation Executive, a government agency tasked with regulatory reform, is leading a "red tape" review of the UK anti-money laundering regime, including a call for evidence, to identify where companies are confused as to what is required or are undertaking unnecessary activity which diverts attention away from where there are real risks. The results of this review will further shape the action plan.

“The review highlights further collaboration between banks and law enforcement, a partnership which is becoming increasingly important given the nature of financial crime, and its ability to supersede institutional and geographical boundaries. The proposed measures will make the UK a less attractive place for money launders, whilst reaffirming our identity as a safe global financial centre,” said Correia.