Notes on new Joint Money Laundering Steering Group (JMLSG) guidance

Purpose – The purpose of this paper is to summarize new guidance from the UK Joint Money Laundering Steering Group on best practices for anti‐money‐laundering and combating the financing of terrorism (AML/CFT).Design/methodology/approach – Summarizes key changes including greater emphasis on senior management responsibility and internal controls; a risk‐based approach; and guidelines on persons firms should not accept as customers, the use of electronic verification, the use of pro‐forma confirmations, monitoring, and staff awareness, training, and alertness.Findings – One of the aims of the risk‐based approach is to require firms to think more about the risk of AMl/CFT rather than simply having a tick‐the‐box approach. Directors and senior managers will face personal liability if they do not demonstrate their involvement in AML/CFT programs and their firms do not meet their obligations.Originality/value – A useful overview and management summary of new AML/CFT guidelines in the UK.