The impact of Schedule 7 of the Counter-Terrorism Act 2008 on banks and their customers

摘要

Purpose – The purpose of this paper is to discuss the potential impact of measures taken in accordance with powers introduced by Schedule 7 of the Counter-Terrorism Act 2008 on banks and their customers. Design/methodology/approach – The paper analyses the legal provisions setting out these powers and comments on their scope; discusses the guidance issued with respect to these provisions by the Joint Money Laundering Steering Group, as well as other commentary on these provisions; examines the remedies available to those affected by the measures taken in exercise of the Schedule 7 powers; and comments on the use made of these powers to date and the relevant outcomes. Findings – The paper concludes that while the Schedule 7 powers are useful in permitting a targeted response to money laundering and terrorism financing, they can be needlessly damaging to business unless used in a proportionate and risk-sensitive manner. Originality/value – The paper analyses critically the first judicial review decision made in respect of the exercise of Schedule 7 powers.