WIREDGOV

International financial centres have lessons to pass on about the role of professional services in combatting illicit finance and kleptocracy.

The enabling role of professional intermediaries – such as legal, accountancy, trust and company service providers (TCSPs) – in modern-day kleptocracies, sanctions evasion and state threats is nothing new. In the globalised economy, kleptocrats and sanctions evaders rely on these professional services providers, or ‘enablers’, to move, hide and legitimise their ill-gotten gains and reputation, rather than carrying suitcases of cash. In the UK, Russia’s full-scale invasion of Ukraine elevated this to a national security priority, and financial centres sit at the forefront.

On the other side of the coin, these same professional services providers serve legitimate functions in the economy. They enable trade, investment and cross-border commerce. According to the Financial Action Task Force (FATF), which sets global standards for anti-money laundering (AML) and counter-terrorist financing, professional services providers are important gatekeepers against financial crime; they must comply with requirements like customer due diligence and support the detection of illicit funds through suspicious activity reports (SARs).

The UK has committed to host an Illicit Finance Summit in December 2026 and, in June 2026, the Centre for Finance and Security at RUSI hosted a cross-sector roundtable discussion among international financial centres (IFCs) – particularly the UK, Crown Dependencies and Overseas Territories – to explore, practically, how gatekeepers can be part of the solution to kleptocracy and illicit finance, rather than the problem.

Supported by the National Endowment for Democracy, the roundtable brought together willing regulators, supervisors, compliance professionals, law enforcement, government, academia and civil society from across jurisdictions. One participant pointed out that this was the first time such a group had come together. The headline was that, despite attempts by the global AML system, political leaders, regulators, firms and law enforcement are pulling in different directions. What have we learnt, where can IFCs move the needle, and what more needs to happen?

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