Dirty money is harming our economy. Each year, the UK’s illicit finance problem costs an estimated £350 billion, nearly 15% of our GDP. The City of London and the UK’s network of Overseas Territories and Crown Dependencies serve as a haven for illicit wealth and economic crime. Dirty money also tarnishes the UK’s reputation, jeopardising its status as a business destination and diminishing its global influence. The US Treasury now categorises the UK as a “higher risk” destination for money laundering, alongside Cyprus.
Additionally, dirty money exacerbates inequality in the UK. Between 2016 and 2022, at least £6.7 billion of UK property was purchased with suspicious wealth. Illicit wealth distorts our property market and contributes to the UK’s housing crisis.
Meanwhile, the Bahamas is known as a major money laundering jurisdiction, facing significant challenges related to financial crimes. Despite the nation attaining technical compliance ratings of “Compliant and Largely Compliant '' in 40 of the 40 FATF’s recommendations, the issue still remains. And it does in the Cayman Islands, Haiti, Chad and more, too.
Money laundering is a serious and pervasive issue. The financial capital it drains from society is significant. The damage and pain it causes in people's lives is substantial. Although we may not see or hear from the victims of money laundering every day, they do exist and are in dire need of a financial system that protects them. This is why thousands of compliance professionals, like us, across various industries work tirelessly every day. These efforts have never been more crucial.
Our collective goal must be to disrupt the flow of dirty money wherever possible. Given the high stakes, one would assume the c-suite is prioritising anti-money laundering (AML) strategies to ensure lasting change.
On the contrary.
Our recent survey reveals a troubling contradiction within financial services, particularly regarding AML efforts. Despite half of C-suite executives expressing only moderate confidence in their companies’ AML processes, 39% have reduced their 2024 compliance budgets.
Moreover, while 99% voiced concerns about compliance capabilities and 75% believed in personal accountability for the C-suite, only 31% ranked this as a top priority.
In a nutshell, they are unconfident and unmotivated—concerned, but still lack conviction.
More work for compliance professionals, fewer holidays for criminals
Compliance professionals work diligently, yet victims of money laundering continue to suffer while bad actors enjoy sunny getaways to places like the Bahamas and the Cayman Islands. Life may not be fair, but that doesn’t mean it shouldn't be.
This is precisely why companies like First AML are fighting the good fight.
Improvements are underway, from Companies House reforms to the Treasury's recent anti-money laundering consultation. Technology also plays a key role, offering solutions that enhance the efficiency of AML processes.
Businesses too are committed to tackling the problem: 75% of respondents believe c-suite executives should be held personally accountable for ensuring compliance, and 67% believe a strong commitment to compliance positively impacts a company's reputation.
But there is still much to be done
Each of us has a duty to enhance our efforts to support those working to create a fairer and more transparent financial system. By doing so, we can help ensure that the benefits of a clean economy are shared by everyone, not just those who exploit it.
Yes, it can be costly for the industry and disruptive to consumers, but these are necessary expenses in the pursuit of a fair and just society. AML represents a vital frontline defence in preserving integrity, trust, and fairness in our global financial landscape.
In the Bahamas, the financial services sector contributes 10-15 percent of GDP and 2 percent of employment.. Similarly, the Cayman Islands, with a population of less than 80,000 and a truly outsized financial footprint, financial services account for about 30 percent of GDP.
About First AML
First AML simplifies the entire anti-money laundering onboarding and compliance process. Its SaaS platform, Source, stands out as a leading solution for organisations with complex or international onboarding needs. It provides streamlined collaboration and ensures uniformity in all AML practices.
First AML transforms an otherwise complex and manual process into one that is simple, cost-effective, and compliant for businesses. By delivering efficiency and time savings, it protects reputations and enables companies to stay on the right side of history in the face of global threats.
Keen to find out more? Book a demo today! No time for a long demo? No problem. See what Source by First AML can do for your business in 2 minutes – watch the short demo here.