United Kingdom

The United Kingdom was rated Compliant with Recommendation 16 in its 2018 Mutual Evaluation Report, and that rating remained unchanged in the 2022 Follow-Up Report. Recommendation 16 addresses the traceability of wire transfers and requires that financial institutions ensure all such transactions are accompanied by accurate originator and beneficiary information. This recommendation aims to prevent the misuse of wire transfers for money laundering or terrorist financing and to ensure timely access to relevant data by competent authorities.

Implementation & Scope

The UK’s legal and regulatory framework for wire transfers is based on the Money Laundering Regulations (MLRs), which mandate that payment service providers must collect and transmit complete payer and payee information. These rules apply to both cross-border and domestic wire transfers, ensuring traceability throughout the payment chain. Regulatory guidance and supervisory mechanisms are in place to monitor compliance across financial institutions, with enforcement carried out by bodies such as the Financial Conduct Authority (FCA) and HM Revenue & Customs (HMRC).

The framework requires that institutions detect non-compliant wire transfers and take appropriate actions, such as rejecting transactions or reporting them as suspicious. Institutions are also obliged to retain records of relevant information for inspection by the UK’s Financial Intelligence Unit (UKFIU) and other authorities.

Continued Compliance & Integration

The 2022 Follow-Up Evaluation did not identify any significant shortcomings with regard to Recommendation 16. The UK maintained its fully compliant status without any need for technical adjustments. This reflects strong implementation across the financial sector, with widespread awareness of and adherence to wire transfer obligations.

The UK’s continued compliance is also supported by its broader financial crime strategy, including reforms under the Suspicious Activity Reports (SARs) Reform Programme and ongoing updates to the UKFIU’s analytical capabilities, although these initiatives are more directly linked to other recommendations.

Conclusion

The UK remains fully compliant with FATF Recommendation 16. Its legal framework, supervisory systems, and institutional practices provide robust safeguards for the traceability of wire transfers. The continuity of this rating highlights the strength of the UK’s financial system in addressing illicit financial flows and maintaining international standards in anti-money laundering and counter-terrorist financing.