ANTI-MONEY laundering rules are hurting British trade by making it unreasonably difficult for honest firms to access finance, business group the Confederation of British Industry (CBI) said today.
The rules are designed to deny crooks the ability to clean their dirty money through the banking system. But the CBI fears the onerous regulations are doing more harm to legitimate businesses which are tied down by the red tape.
The group wants the Treasury and business departments to review the rules to see how they could be made less damaging.
“If firms can’t get the trade finance they need to explore new markets, the UK has no way of meeting its ambitious exports target of £1 trillion by 2020,” said CBI boss John Cridland.
“Of course we must have robust anti-money laundering regulations but the detailed application can be cumbersome and complex and is acting as a brake for businesses wanting to sell their products and services around the world.”
Cridland also called for more work to standardise the paperwork needed to raise funds in private placements, to help mid-sized firms access finance.