Glossary
The principal UK statute on money laundering, creating the main offences and the obligation to report knowledge or suspicion of criminal property.
Anti-Money Laundering
from Financial Regulation
The Money Laundering Regulations 2017 (MLRs) require regulated firms — including law firms — to conduct know-your-customer (KYC) checks, monitor transactions for suspicious activity, and file suspicious activity reports (SARs) with the National Crime Agency. The UK's anti-money laundering regime sits within a broader framework including the Proceeds of Crime Act 2002 and the Terrorism Act 2000. Lawyers occupy a dual role: they advise clients on AML compliance while being subject to AML obligations themselves. Failing to report knowledge or suspicion of money laundering is itself a criminal offence, creating real tension between client confidentiality and reporting duties.
FCA (Financial Conduct Authority)
The UK regulator responsible for the conduct of financial services firms and the integrity of financial markets.
PRA (Prudential Regulation Authority)
The Bank of England subsidiary that supervises the financial safety and soundness of banks, building societies, insurers, and major investment firms.
FSMA (Financial Services and Markets Act 2000)
The primary legislation governing the regulation of financial services in the UK, establishing the framework within which the FCA and PRA operate.
UK MAR (Market Abuse Regulation)
The UK regulation prohibiting insider dealing, unlawful disclosure of inside information, and market manipulation in respect of financial instruments.
KYC (Know Your Customer)
The process by which regulated firms verify the identity and assess the risk profile of their clients before establishing a business relationship.
SAR (Suspicious Activity Report)
A report filed with the National Crime Agency when a firm knows or suspects that a transaction or activity involves the proceeds of crime or terrorist financing.
Consumer Duty
The FCA's overarching standard requiring firms to act to deliver good outcomes for retail customers, covering products, price, understanding, and support.
Operational Resilience
The ability of a financial firm to prevent, adapt to, respond to, recover from, and learn from operational disruptions.