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 an awareness of:
-the risks of banks, financial institutions, the financial system and other professionals being used for illegal purposes, in particular for laundering the proceeds of crime; and
-how international, European and UK law makers and the 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.

As a result substantive legal and regulatory standards and enforcement 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, solicitors and other professionals 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 anti money laundering legal standards and techniques at international and domestic level (taking the UK as prime example).

This course will also study other financial crimes and consider the risk that they pose to businesses and society generally and what techniques and strategies have been developed to disrupt and prevent such crimes.

Outline Of Syllabus

- The multiple legal Meanings of Financial Crime.

- The “problems” of money laundering and terrorist financing. Rationales for their legal proscription and sanction.

- Domestic and International efforts to prevent money laundering and the related problem of use of the financial system for terrorist finance. Basel, IMF, FATF etc.

- UK primary and secondary legislation governing general offences of money laundering and terrorist financing and in respect of other financial crimes.

- Crime prevention measures and punishments available for money laundering offences, terrorist financing and other financial crimes.

- The work and powers of the National 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, Proceeds of Crime Act 2002 and The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.

- 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

Module leaders are revising this content in light of the Covid 19 restrictions.
Revised and approved detail information will be available by 17 August.

Assessment Methods

Module leaders are revising this content in light of the Covid 19 restrictions.
Revised and approved detail information will be available by 17 August.

Reading Lists