Canadian Social Science
The Analysis of the Impact of the Proceeds of Crime Act 2002’s Anti-Money Laundering Provisions on Bankers
Abstract
This article examines the impact of the anti-money laundering (AML) regime established by the Proceeds of Crime Act 2002 (POCA) on bankers in the United Kingdom. Through a critical analysis of legal provisions and empirical evidence, this study finds that POCA, while elevating bankers’ professional responsibilities and reinforcing their role in safeguarding financial integrity, has also subjected them to considerable operational and legal pressures. The analysis identifies key challenges, including heightened personal liability, onerous compliance burdens, and ethical dilemmas in client relationships. These challenges arise primarily from ambiguous regulatory guidance and the practice of defensive over-reporting. The study concludes that this well-intentioned framework has inadvertently transformed the banker’s role, creating a fundamental tension between their traditional advisory functions and their duties as de facto frontline regulatory agents. It concludes that striking a balance between these competing demands is crucial for the effectiveness of the AML regime and the long-term sustainability of banking practice.
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DOI: http://dx.doi.org/10.3968/13915
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