UK’s Joint Money Laundering Steering Group (JMLSG) has provided its guidance on how to tackle money laundering and terrorism financing in the country. The guidance lays down the legal and regulatory requirements of the AML/CFT framework. It seeks to help the stakeholders understand these requirements and guide them on how to implement them. Lastly, the guidance also intends to help firms to mitigate AML/CFT risks.
JMLSG’s guidance covers the entire UK financial sector, along with added focus on several specific industry sectors. It underscores the role of a firm’s senior management in countering AML/CFT risks following a risk-based approach. It talks about how to identify and verify customers, when conducting customer due diligence. It also instructs on how to monitor customer activity and identify and report any suspicious activity. The guidance highlights the importance of staff awareness, training and record keeping in keeping financial criminals at bay.
Further, the JMLSG takes cognizance of the fact that UK laws require court consideration of the government-approved industry guidance provided to a firm under investigation for money laundering or terrorism financing. Therefore, the guidance lays particular emphasis on how firms should meet their legislative and regulatory requirements based on their specific business risk profile.