Answer ... Financial crime takes many forms and is governed in the UK by various provisions:
- Money laundering is primarily governed by the Proceeds of Crime Act 2002. Criminal liability may also be incurred by ‘relevant persons’ for failure to comply with the requirements under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, which impose controls relating to customer due diligence, group-level policies and risk assessments.
- The facilitation of tax evasion is an offence under the Criminal Finances Act 2017.
- Terrorist financing is mainly governed by the Terrorism Act 2000.
- Bribery and corruption are mainly governed by the Bribery Act 2010.
- Criminal offences of insider dealing and market manipulation are contained in Section 52 of the Criminal Justice Act 1993 and Part 7 of the Financial Services Act 2012 respectively.
- Breach of financial sanctions is governed by way of directly applicable EU regulations and corresponding UK statutory instruments.
- The main offences for fraud are contained in the Fraud Act 2006 and the Theft Act 1968, with additional offences in companies and tax legislation.
Additionally, all firms regulated by the FCA must have adequate policies and procedures in place to counter the risk that they might be used to further financial crime. The FCA is empowered to enforce against firms for breaches of the relevant rules.
A key challenge for fintech companies is to ensure that they balance innovation with their obligations under relevant financial crime legislation.