Navigating the New US Tariffs: A Financial Crime and Compliance Challenge for UK Firms

Introduction: Why This Matters

The newly introduced 10% US tariff on British products is not merely a trade measure — it represents a significant financial crime risk management challenge. For UK financial institutions, it signals the need to invest in more intelligent anti-money laundering (AML) managed services, revamp risk assessment procedures, and strengthen overall compliance capabilities.

This policy change creates vulnerabilities in AML compliance screening, exposes inefficiencies in KYC (Know Your Customer) onboarding, and presents opportunities for risk mitigation. It also heightens exposure to trade-based money laundering (TBML), which remains a priority area under the UK Money Laundering Regulations 2017.

How Tariffs Create Exposure

The latest 10% US tariff on British goods is not just a shift in trade policy — it is a catalyst for new financial crime risk management challenges. It serves as a reminder for UK financial institutions to reinforce their compliance frameworks, refresh risk assessment protocols, and invest in smarter AML managed services.

These changes expose firms to vulnerabilities in AML screening, inefficiencies in KYC onboarding, and potential gaps in risk mitigation procedures. Critically, they increase exposure to trade-based money laundering (TBML), a key priority under the UK’s Money Laundering Regulations 2017.

Regulatory Expectations: FCA and HMRC

Regulators such as the Financial Conduct Authority (FCA) and HM Revenue & Customs (HMRC) expect firms to reassess their compliance risk assessments and enhance client due diligence procedures. Under Regulation 18, firms must conduct enterprise-wide, ongoing risk assessments, while Regulation 33 mandates Enhanced Due Diligence (EDD) where high-risk profiles — especially where ultimate beneficial ownership (UBO) is unclear — are involved.

Compliance officers will also need to prepare for increased scrutiny of how AI technologies are used in risk analysis, regulatory compliance, and fraud detection. Firms must be proactive in detecting emerging risks using these advanced systems.

Priority Actions for Financial Crime Teams

Future-Proof Monitoring:
Leverage AI compliance software, risk assessment tools, and regtech platforms to detect AML red flags early and bolster fraud detection capabilities.

Improve KYC Controls:
Centralise online KYC processes, integrate procedures across systems, and align your onboarding approach to meet evolving regulatory expectations.

Continuous Monitoring Support:
Implement infrastructure for real-time, continuous monitoring, allowing for immediate detection and prevention of suspicious behaviour.

Embed Ethics in AI:
Develop and adopt an AI governance policy, commit to ethical AI usage, and embed best practices for accountable AI into your compliance framework.

Training Always:
Continually upgrade staff training in AML, KYC, and EDD processes, ensuring that compliance teams are equipped with the latest knowledge and AI tools to prevent financial crime.

Strategic Compliance and Consulting Support

Whether you are part of a financial advisory firm, a UK-based consulting company, or launching a managed services approach to compliance, embedding a strong risk strategy into your growth model is crucial.

At ACS Operations, we help firms:

• Build effective governance and risk frameworks

• Meet UK financial advisory and compliance standards

• Enhance fraud risk management and deploy AI-powered risk management frameworks

• Seamlessly integrate data and analytics into compliance processes

For consulting firms, wealth managers, or boutique strategy firms, regulatory alignment must be a strategic priority — not an afterthought. Success lies in having the right regulatory compliance professionals supporting your business.

Why ACS Operations?

At ACS Operations, we are committed to providing efficient, bespoke compliance solutions across the financial services sector. Our expertise includes:

• Financial crime audits and comprehensive compliance risk assessments

• Development of robust KYC/AML infrastructures and due diligence programmes

• Implementation of AI-based compliance and fraud prevention solutions

• Full support for AML onboarding, user-friendly compliance dashboards, and enhanced due diligence (EDD) frameworks

Our future-proof compliance solutions serve both established financial institutions and agile firms seeking sustainable, compliant growth.

Conclusion: The Path Forward

The global trade landscape is changing rapidly. UK firms must move from static, manual compliance controls to dynamic, AI-enabled systems that integrate effective risk assessment, compliance automation, and ethical governance.

Whether you are enhancing your KYC frameworks, strengthening your risk management processes, or transitioning to AI-driven compliance models, ACS Operations is here to support your journey towards compliance confidence.

Visit acsoperations.com to learn how we help UK financial firms transform complexity into lasting compliance success.