NBS8219 : Legal and Regulatory Aspects of Money Laundering and Financial Crime

Semester 2 Credit Value: 10
ECTS Credits: 5.0


This course aims to equip students with awareness of:
-the risks of banks, financial institutions themselves, and the financial system being used for illegal purposes, in particular for laundering the proceeds of crime; and
-how international, European and UK law makers and Courts have sought to prevent use of the financial system in this way.

An unfortunate consequence of the globalization of financial markets and their liberalization and deregulation has made it easier for organised criminals and terrorist groups to use the world’s financial system for illicit objectives.

Thus substantive legal and regulatory standards, and enforcement and redress legal techniques, have had to develop and adapt for use against those using banks and other financial intermediaries, as well as financial products and markets, for money laundering activity; and, more recently, for financing terrorism. Banks and bankers are at risk of serious jeopardy in criminal, civil and regulatory law if they find themselves involved in illegal money laundering activity.

The aim of this course will be to consider the potential for abusive use of the banking and financial system by those seeking to launder the proceeds of criminal conduct.
This course explains and evaluates these anti money laundering legal standards and techniques at international and domestic level (taking the UK as prime example).

Outline Of Syllabus

- The Multiple Legal Meanings of “Financial Crime”

- The “problem” of Money Laundering and of its new baby sister of “Terrorist Finance” Rationales for their legal proscription and sanction

- European and International Efforts to Prevent Money Laundering and the related problem of use of the financial system for terrorist finance. : Basel, IMF, FATF etc.

-Domestic efforts to prevent money laundering : Example of the UK

-UK primary and secondary legislation governing general offences of money laundering and terrorist financing.

-Criminal Sanction and Statutory Provision for confiscation orders for the primary money laundering offences

-The work and powers of the Serious and Organised Crime Agency

-Regulatory regime for the prevention of use of the financial system for money laundering and financial crime – UK Financial Services and Markets Act 2000 and its enforcement apparatus for defects in money laundering controls and systems.

-Industry Codes - Role of the UK Joint Money Laundering Steering Group guidelines

-Compliance Issues – Should Banks and Financial Institutions be policemen?

- Banks potential civil liability for the consequences of financial crime (including money laundering activity) and civil legal techniques for asset recovery and compensation from primary perpetrator and accessories.

- Practical Problems raised by conflicts between Civil law liability and Criminal/Regulatory regimes – Recent examples of Dilemmas for Banks in the UK Courts

Teaching Methods

Teaching Activities
Category Activity Number Length Student Hours Comment
Guided Independent StudyAssessment preparation and completion132:0032:00N/A
Scheduled Learning And Teaching ActivitiesLecture72:0014:00N/A
Guided Independent StudyDirected research and reading125:0025:00N/A
Scheduled Learning And Teaching ActivitiesSmall group teaching41:004:00N/A
Guided Independent StudyIndependent study125:0025:00N/A
Teaching Rationale And Relationship

The lectures will be largely explanatory of how to access and interpret the sources of law and regulation pertinent to financial crime.

During the interactive student led seminars students will apply their legal knowledge to real commercial scenarios.

Assessment Methods

The format of resits will be determined by the Board of Examiners

Other Assessment
Description Semester When Set Percentage Comment
Essay2M1003000 words
Assessment Rationale And Relationship

The coursework will test practical understanding of how anti money laundering and anti fraud laws work in a real commercial setting.

Reading Lists