• Register
Return to: Home > Comments > FinCen Files may affect long term relationships and Brexit negotiations

FinCen Files may affect long term relationships and Brexit negotiations

The UK’s plans to reform the register of company information to clamp down on fraud and money laundering following the release of the FinCen files will go some way towards strengthening controls but a further tightening of the regulatory environment must follow, say leading tax and advisory firm Blick Rothenberg

Sunil Bhavnani, a Director at Blick Rothenberg said: “The revelations regarding the reports made by certain banks such as HSBC and Standard Chartered could not have come at a worse time for the UK and the economy.”

He added: “The FinCEN files show that over 3000 UK companies were cited on the suspicious activity reports as being potentially involved in money laundering activities – this is more than any other country. The perception is that the UK is higher risk due to weaker controls and this may have consequences for the UK’s longer-term relationships with other countries.”

Sunil, said: “The UK is in the middle of negotiations with the EU to map out what the future of its trading relationship will be, and progress to date indicates that there is a genuine risk of a no-deal Brexit.  The overspill of the Brexit arguments and implications on the Good Friday agreement could have a significant impact on the UK’s ability to agree a trade deal with the US, the timing of discussions themselves complicated by the US election in November.  At a time of significant economic uncertainty caused by the Coronavirus pandemic it is imperative that the UK continues to be an attractive place for business, but with regulatory integrity to satisfy the needs of overseas trade partners.”

Sunil continued “A further tightening of the regulatory environment must happen if the UK is to ensure greater assurance can be obtained on the source of funds and the identity of beneficial owners. Such changes increase the administrative burden on UK businesses, their advisors and owners, and investment in technological solutions with greater oversight and transparency of information is crucial to alleviating this.”

Top Content

    Brazil: regulation and technology form basis for recovery

    Opportunities in the capital markets and the ever-growing influence of technology are expected to have a significant impact on the Brazilian accounting profession over the next 12 months, writes Paul Golden.

    read more

    Mentoring support and the opportunity to delegate

    Jon Lisby will be known to many from his former role as CEO of Kreston International. Here, he explains the background to his new venture, Global Alliance Advisory Services (GAAS), and how he aims to offer support to alliance CEOs.

    read more

    Global by name, global by nature

    Stephen Heathcote became chief executive officer of PrimeGlobal on 1 June 2019. Robin Amlôt met him to discuss the various new challenges that he has taken on, and his ambitions for the association.

    read more

    ARGA team, assemble!

    The new top team has been named that will see in root-and-branch reform at the Financial Reporting Council (FRC) as it transforms into the Audit, Reporting and Governance Authority (ARGA). Will the new duo be as dynamic as some are hoping? Robin Amlôt reports.

    read more

    CORONAVIRUS TIMELINE: REACTIONS FROM THE ACCOUNTANCY PROFESSION

    As the Coronavirus (COVID-19) continues to spread across the world, the International Accounting Bulletin and The Accountant will be collating all the latest news and updates from the profession on the pandemic’s impact.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.