Money laundering and terrorist financing clampdown.
On March 15, the UK Treasury announced plans to create a new watchdog aiming to improve detection of crimes relating to money laundering and terrorist financing, and published draft updates to money-laundering regulations. After Brexit, the United Kingdom will no longer have to adhere to EU money-laundering rules; improving the regulatory framework around suspicious financial activity is crucial to ensure it does not become even more attractive to international launderers.
The new watchdog should make compliance easier, minimising the regulatory burden on high-value sectors.
Increased scrutiny of estate agents and lawyers may reduce demand for high-end UK residential property, slowing growth in house prices.
Against the backdrop of Brexit, the government may shy away from pressuring Overseas Territories in case it provokes independence demands.
