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

Abstract

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.

Citation

Goldby, M. (2010), "The impact of Schedule 7 of the Counter‐Terrorism Act 2008 on banks and their customers", Journal of Money Laundering Control, Vol. 13 No. 4, pp. 351-371. https://doi.org/10.1108/13685201011083876