The UK’s AML regime includes several detailed rules designed to prevent the misuse of the financial system. Examples include:

• Regulation 27 – Customer Due Diligence (CDD): Requires firms to verify the identity of customers and beneficial owners before establishing a business relationship or carrying out transactions.
• Regulation 33 – Enhanced Due Diligence (EDD): Obligates firms to apply additional checks when dealing with high-risk clients, such as politically exposed persons (PEPs) or customers from high-risk third countries.
• Regulation 28 – Ongoing Monitoring: Mandates that firms continuously monitor business relationships, ensuring customer information is current and transactions align with the customer’s risk profile.
• Regulation 21 – Risk Assessments: Requires firms to carry out a written risk assessment identifying and assessing the risks of money laundering and terrorist financing they face.
• Regulation 40 – Record-Keeping: Firms must retain identity checks, risk assessments, and transaction records for at least five years after the end of a client relationship.
• Regulation 47 – Policies, Controls and Procedures: Requires firms to implement appropriate internal controls to manage and mitigate money laundering risk.

These regulations form the foundation of a robust AML framework and are enforced by supervisory bodies such as the Financial Conduct Authority (FCA) and HMRC.