Since Brexit, UK firms are facing unique challenges, balancing their obligations to the UK Financial Conduct Authority (FCA) and Her Majesty’s Treasury (HMT), as well as complying with the 7th Anti-Money Laundering Directive (7AMLD) from the EU.
Balancing both UK and EU regulations
One of the most significant challenges UK firms face is dual compliance, as they must adhere to both UK regulations and EU laws. For firms with cross-border operations, this means complying with UK regulations such as the Sanctions and Money Laundering Act, while also meeting EU standards like the Seventh Anti-Money Laundering Directive (7AMLD). This overlapping responsibility requires careful coordination of internal compliance programs and can strain resources.
UK firms, especially those with cross-border operations, must monitor both domestic and EU regulatory updates closely to ensure they meet conflicting regulatory expectations. This can be a resource-intensive process, requiring a high level of operational coordination between legal, compliance, and management teams.
Increased enforcement and scrutiny in the UK
The UK has recently ramped up its enforcement of anti-money laundering (AML) regulations, particularly with regard to sanctions compliance and money laundering prevention. The FCA has imposed significant penalties on firms for failing to meet compliance standards, sending a clear message that financial crime will not be tolerated. This increased scrutiny underscores the need for UK firms to invest in compliance systems that can quickly identify and report suspicious activity.
Additionally, crypto firms and FinTechs operating in the UK should be prepared for stricter regulations. As digital assets continue to growin popularity, the UK government is increasing its focus on AML controls for these industries to prevent illicit financial activity.
Compliance technology and proactive practices
As regulatory pressure mounts, firms must act decisively to maintain compliance with both UK and EU standards. Staying ahead requires the strategic adoption of cutting-edge compliance technologies, including AI-powered screening tools and automated transaction monitoring. These technologies enable firms to quickly identify emerging risks and ensure compliance is seamlessly integrated throughout their operations.
Moreover, integrating continuous employee training alongside these tools helps ensure that teams are well-equipped to handle new or changing regulations. By embracing a proactive compliance approach, firms can not only reduce exposure to risk but also establish themselves as leaders in security, ethics, and trust.
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How we help
At ACA, we provide industry-leading AML services designed to help firms achieve and maintain compliance with global regulatory requirements.
- Manage AML risks: Our services include risk assessments and ongoing monitoring, enabling your firm to detect potential money-laundering activities and ensure compliance with The Financial Conduct Authority (FCA), Securities and Exchange Commission (SEC), Dubai Financial Services Authority (DFSA), and Financial Services Regulatory Authority (FSRA) standards.
- Maintain audit-readiness: Stay prepared for inspections with regulator-approved documentation and comprehensive audit support, ensuring compliance with AML and CFT obligations.
- Streamline compliance processes: Ease the burden on in-house teams with our optimized AML workflows, technology, and outsourced support.
Whether you are looking to launch, grow, or protect your firm, we can provide tailored AML solutions that help you manage risks, maintain compliance, and build a robust compliance framework.
Contact us today to see how our AML expertise can enhance your compliance and bolster resilience.