ML Regulations 2007

MONEY LAUNDERING REGULATIONS 2007

• 2007 ML regulations commenced in UK law 15 December 2007
• All accountantancy, trust and company services providers, solictors and estate agent firms to be monitored for compliance
• Monitoring by certain professional bodies, HMRC and OFT
• Strengthens existing regulations for compliance
• Fines and striking off for breach of Regulations
• Affects all firms and individuals in practice

Regulation 45 also criminalises offences for non-compliance of the Regulations by firms.
The summary of the changing requirements are:

• Provide more detailed obligations regarding customer due diligence, for example, explicit requirements for firms to undertake ongoing monitoring of business relationships and for firms to identify not just the client but the beneficial owner of the client business.
• Require firms to vary customer due diligence and monitoring according to the risk of money laundering or terrorist financing.
• Require firms to take enhanced customer due diligence measures in higher risk situations, while allowing firms to take reduced measures for specific situations with a lower risk of money laundering.
• Allow firms to rely on certain other firms for undertaking customer identification, and
• Clarify the arrangements for the supervision of firms, including those that will be supervised for the first time.

These changes bring more onerous responsibilities to the firm, including

• Requirement to perform full client due diligence procedures, that is risk assessment, know your client and identity verification on all clients pre 1 March 2004.
• Staff training on a regular basis
• Specific systems and procedures on a risk sensitive basis for PEP and sanctions listings.
• Systems to respond to FIU enquiries
• Mandatory risk assessment of all clients

Frequently Asked Questions