Impact of Brexit on EU Anti-Money Laundering efforts
Authored by – Ross Verhaere, Associate Consultant and Remco Schenk, Principal Consultant
Brexit has become a captivating phenomenon, particularly in recent months, fanning the flames of uncertainty further as to how the UK will move forward after Brexit. Whilst no one can predict how things will unfold, there are genuine concerns from many financial experts that the UK will be placing itself into unchartered territories, especially regarding its antimoney laundering efforts, with significant impact on European Financial Institutions.
AML: Current State
Currently, the UK faces an uphill fight against those parties laundering their dirty cash in its financial systems with the HM Treasury pointing out that money laundering alone costs the UK an astonishing £37 billion per year.
Now that the UK is set to leave, the money laundering problem is in danger of being amplified further, bringing significant risks to the EU. With new trade deals unfolding and a foreseen increase of trade between UK & EU businesses versus companies based outside of the EU, both the UK and European financial institutions will need to ensure anti-money laundering controls are proportionate to this increase of non-EU transactions. Collaboration on a policy-level is the key, which ironically has been proven not to be one of the UK-EU strong suits over the last two years since the vote to leave.