UK Treasury urges banks and lawyers to share success stories of blocking illicit funds

In preparation for its next mutual evaluation by the Financial Action Task Force, the UK Treasury has called on City banks and law firms to supply concrete examples of how they have blocked illicit money since 2022. The evidence sought includes instances where firms rejected high-risk clients, identified red flags in customer profiles, or triggered investigations and prosecutions. This outreach follows a 2018 FATF assessment that labelled London a hub for dirty money and a National Crime Agency estimate that £100bn is laundered annually in the UK.

Moody’s has warned that despite billions spent on supervision, the risk remains high and FATF reviewers will scrutinise how much the controls actually reduce it. The Treasury says new strategies, enhanced enforcement powers and additional funding have been introduced, and it will submit its evidence packet in October before an on-site review next summer. Emerging challenges such as AI-fuelled investment scams and the growing use of cryptocurrencies are also highlighted as concerns.