From today, businesses including banks and estate agents, will have to conduct more stringent checks on the money they handle so they can ensure it is from a legitimate source and will not be used to fund terror acts.

The new regulations implement the EU 4th Money Laundering Directive and complement work across government to strengthen defences and deliver on the 2016 Action Plan for anti-money laundering and counter-terrorist finance.

This includes the Criminal Finances Act, which will give law enforcement further capabilities and powers to recover the proceeds of crime, tackle money laundering, tax evasion and corruption, and combat the financing of terrorism.

Stephen Barclay, economic secretary to the Treasury, said: “We are cracking down on terrorists and criminals funnelling money through our financial system. Terrorist financing and money laundering are significant threat to our national security, and we are determined to make the UK a hostile environment for illicit finance. These new rules will tighten our defences, protect the integrity of our financial system and help protect the British public from terror attacks and criminal activities.”

Announcing the rules, HM Treasury said serious and organised crime costs the UK at least £24bn every year.

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