Anti-money laundering and counter-terrorist financing (AML/CTF)

What is money laundering, terrorist financing and proliferation financing?

Money laundering (ML) is the process by which the proceeds of crime are converted into assets which appear to have a legitimate origin in order that they can be retained permanently or recycled into further criminal enterprises.

In general terms, terrorist financing (TF) is the provision or collection of funds from legitimate or illegitimate sources with the intention or in the knowledge that they should be used in order to carry out any act of terrorism, whether or not those funds are in fact used for that purpose.

From August 2022, firms must also ensure they have in place policies, controls and procedures to counter the risks of financing proliferation of weapons of mass destruction (PF).

The statutory definitions of money laundering, terrorist financing and proliferation financing are set out in full in Practice Note: The Money Laundering Regulations 2017 (MLRs)—essentials for financial services—Meaning of money laundering, terrorist financing and proliferation