Are you planning to open a business in the private banking sector and looking for British AML regulatory rules? This article will be perfect to improve your knowledge of the country’s implementation of AML policies, laws, and procedures. We will especially focus on private banking where AML compliance is crucial.
AML obligations for private banking
British regulators oblige private banking institutions registered in the UK to imply a system aimed at fighting money laundering and financial crime. The system is supposed to function efficiently and prevent tax evasion. If a banking administration fails to prevent it or even assists the evasion, such act is deemed a grave offense, and is a bank would be punished according to the British legislation. Thus, it is absolutely necessary for the newly opened banking companies to ensure full AML compliance and prevent tax evasion.
Moreover, as the MLR states, private banking companies must undergo CDD before they would be able to start a business relationship.
Documents to present
To open a bank account in Great Britain, an individual is required to provide their name, date of birth, and address. All the above must go through independent and reliable verification.
When it comes to company registration in the UK, a 100% compliance with tax legislation is an absolute must. An offense of tax legislation is a very often case of money laundering, which is punished accordingly by the British regulators.
The act of a banking institution is deemed a money laundering offense if it responds to these criteria:
- Failure to report money laundering or other suspicious activity
- Possession, use, or purchase of an illegally obtained property
- Facilitation of use or purchase of an illegally obtained property
- Intentional relocation, disguise, or exchange of an illegally obtained property
- Obstruction of investigation.
It is crucial to obtain an in-depth knowledge of AML requirements and private banking regulation in the UK prior to establishing a banking company there. For more up to date rules and obligations posed by the British regulators, contact specialists from COREDO who will free you from the need of studying endless documentation and complicated legal texts. Our experts will make your new business opening way less problematic.