Personal Criminal Liability
The most serious consequence of non-compliance is personal criminal prosecution under the Proceeds of Crime Act 2002. These are personal offences — they apply to the individual, not the firm.
| Offence | Section | Maximum Penalty |
|---|---|---|
| Concealing, disguising, converting, or transferring criminal property | s.327 POCA | 14 years |
| Entering into arrangements facilitating ML | s.328 POCA | 14 years |
| Acquiring, using, or possessing criminal property | s.329 POCA | 14 years |
| Failure to disclose (regulated sector) | s.330 POCA | 5 years |
| Tipping off | s.333A POCA | 2 years |
Regulatory Fines
Firms that fail to maintain adequate AML controls face substantial regulatory penalties. The FCA’s GBP 42 million fine against Barclays in 2025 — comprising GBP 39.3 million for the Stunt & Co failures and GBP 3.1 million for WealthTek — demonstrates that even the largest institutions are not immune.
Reputational Damage
The reputational impact extends far beyond the fine itself. The Barclays enforcement received widespread media coverage and became a compliance training case study across the industry.
Customer Confidence
Loss of trust leads to customer attrition and difficulty attracting new business
Investor Impact
Share price pressure and increased cost of capital
Talent Retention
Difficulty attracting and retaining top compliance professionals
Regulatory Scrutiny
Heightened oversight, more frequent on-site visits, mandatory remediation
Employment & Professional Consequences
Employees who fail to comply with AML obligations face summary dismissal. AML failures are treated as gross misconduct. For individuals in regulated roles, consequences include:
- Withdrawal of FCA approval
- Prohibition orders preventing the individual from performing regulated activities
- Inclusion on the FCA’s publicly searchable regulatory actions register
FCA 2026 Direction
The FCA’s anticipated priorities for 2026 make the direction of travel clear:
Material AML deficiencies will be treated as governance failings, potentially leading to personal action against individual Senior Managers under SM&CR. WilmerHale’s analysis confirms that financial crime remains a top enforcement priority with intensified scrutiny of both systems and individuals.
Knowledge Check
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