{"id":54886,"date":"2025-10-21T13:38:31","date_gmt":"2025-10-21T17:38:31","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/uk-professionals-push-back-against-stricter-aml-rules-amidst-modest-fed-reverse-repo-uptake\/54886\/"},"modified":"2025-10-21T13:38:31","modified_gmt":"2025-10-21T17:38:31","slug":"uk-professionals-push-back-against-stricter-aml-rules-amidst-modest-fed-reverse-repo-uptake","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/uk-professionals-push-back-against-stricter-aml-rules-amidst-modest-fed-reverse-repo-uptake\/54886\/","title":{"rendered":"UK Professionals Push Back Against Stricter AML Rules Amidst Modest Fed Reverse Repo Uptake"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>UK legal and accountancy professionals<\/strong> are actively resisting proposed anti-money laundering (AML) reforms, particularly new obligations for heightened due diligence on pooled client accounts.<\/li>\n<li>The <strong>Law Society of England and Wales<\/strong> warns that these amendments could impose &quot;substantial new burdens,&quot; potentially leading to increased costs, delays, and reduced public access to justice.<\/li>\n<li>Proposed changes, including the eradication of Simplified Due Diligence (SDD) for pooled accounts, are viewed as disproportionate and potentially undermining the UK&#39;s economic crime defenses.<\/li>\n<li>The Federal Reserve&#39;s reverse repo operation saw <strong>10 counterparties<\/strong> participate, taking a total of <strong>$4.699 billion<\/strong>.<\/li>\n<\/ul>\n<h2>UK AML Reforms Face Industry Opposition<\/h2>\n<p>Lawyers and accountants in the United Kingdom are vocalizing strong opposition to forthcoming anti-money laundering (AML) reforms, arguing that the proposed changes will introduce excessive burdens and potentially hinder access to legal services. The Law Society of England and Wales has urged the government to reconsider key aspects of the draft Money Laundering and Terrorist Financing (Amendment and Miscellaneous Provision) Regulations 2025. These regulations aim to address identified weaknesses in the current framework, including issues with pooled client accounts and customer due diligence.<\/p>\n<p>A primary point of contention is the proposed requirement for full due diligence on pooled client accounts, regardless of assessed risk levels, which would eliminate the application of Simplified Due Diligence (SDD). The Law Society argues that this blanket obligation is &quot;disproportionate, operationally burdensome and inconsistent with previous policy,&quot; and could divert compliance resources away from higher-risk cases. Critics contend that there is no compelling evidence suggesting the current approach to pooled accounts poses a systemic risk to the UK&#39;s AML regime.<\/p>\n<p>The legal body has warned that these heightened obligations are likely to result in <em>delays, increased costs, and reduced access to justice for the public<\/em>. Furthermore, they believe that eradicating SDD would undermine the country&#39;s economic crime defenses by creating unnecessary work in low-risk contexts. This pushback comes as the UK prepares for its next evaluation by the Financial Action Task Force (FATF) in 2027, with the supervision of lawyers and accountants expected to be under particular scrutiny.<\/p>\n<h2>Fed Reverse Repo Operation Sees Limited Uptake<\/h2>\n<p>In other financial news, the Federal Reserve&#39;s reverse repo operation on October 21, 2025, saw <strong>10 counterparties<\/strong> participate. These institutions collectively took <strong>$4.699 billion<\/strong> in the operation. This level of participation reflects the current dynamics in the short-term funding markets.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways UK legal and accountancy professionals are actively resisting proposed anti-money laundering (AML) reforms, particularly new obligations for heightened 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