AML regulations – update
2 August 2017
We are working through the new Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations, which came into force on 26 June this year.
The regulations place new requirements on firms and on us as a “supervisor” – those who regulate or oversee the work of professionals – to tighten up controls to prevent money laundering and terrorist financing. A particular focus of the new regulations is transparency; both in terms of firms being aware of who they are dealing with, and also supervisors being aware of and approving those who work within relevant firms.
We will soon publish an assessment of the regulations which will set out our views on the international and domestic risks of money laundering for firms we regulate. We are also required to collect data on our firms that are offering services set out within the regulations.
We will have to approve beneficial owners, officers, managers and sole practitioners of those firms. Our intention is to write to firms to ask whether they are performing any of the activities caught by the money laundering regulations.
We expect to do this over the winter, but in the meantime we are not asking firms to apply to us for approval under the Money Laundering Regulations. We also expect that you should all be familiar with your obligations to prevent money laundering, and the new requirements under the 2017 Money Laundering Regulations.