Commons Committee seeks clarity on UK/EU AML divergence

The House of Commons (European Scrutiny Committee) has written a letter on the implications for the UK of the proposed changes to EU AML rules. The Committee wants to understand better what the UK’s general intentions are in relation to EU law, particularly those parts of the AML/CFT regime that it has described as “inflexible and overly restrictive”. The letter also asks what approach the Government will take to weighing the costs and benefits of divergence in this area, and how it would counter any allegation that divergence would mean weakening of standards and therefore be limited by the EU/UK Trade and Cooperation Agreement. Finally, it asks for a progress report on the UK/EU MoU on financial services, and whether this will include AML/CTF issues.