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Implementation of the Fifth Money Laundering Directive

Fifth Money Laundering Directive

This latest directive revisits certain areas of the Fourth Directive to further strengthen transparency and counter-terrorist provisions. The requirements of 5MLD must come into effect through national law by 10 January 2020 in line with Article 4 of the 5MLD.

The Fifth Directive introduces a number of elements to strengthen the UK Regime;

  • New obliged entities
  • Electronic money
  • Customer Due Diligence (CDD)
  • Obliged entities: beneficial ownership requirements
  • Enhanced Due Diligence
  • Politically Exposed Persons
  • Mechanisms to report discrepancies in beneficial ownership information
  • Trust Registration service
  • National register of bank account ownership
  • Reporting by Treasury
  • Pooled client accounts Continue reading

People with Significant Control (Amendment) Regulations 2017

People with Significant Control (Amendment) Regulations 2017

The Government enacted the legislation necessary to implement changes required by the Fourth Money Laundering Directive to the UK regime for the disclosure of people with significant control (PSCs). Two sets of amending regulations were made at the last minute, both of which came into force on 26 June 2017.

  • the Information about People with Significant Control (Amendment) Regulations 2017 (SI 2017/693); and
  • the Scottish Partnerships (Register of People with Significant Control) Regulations 2017 (SI 2017/694).

Both sets of regulations were laid before Parliament on 23 June, just three days before they came into force. Continue reading

Changes to PSC registers Transitional Arrangements

Changes to PSC registers Transitional Arrangements  

Under the transitional arrangements set out in the Schedule to the 2017 Regulations, the obligation in s. 790VA to notify changes to Companies House applies to a change to a company’s PSC register made before, on or after 26 June 2016 unless the company has already notified the change in a confirmation statement. Any change to the PSC register made before 26 June 2017 that is notifiable under this rule, must be notified to Companies House before the end of the period of 14 days beginning with 26 June 2017. Continue reading

PSC requirements – What you must do

PEOPLE WITH SIGNIFICANT CONTROL (PSC)

From April 2016

You need to start keeping a record of the people who control your company. There are criminal penalties if you don’t do this.

For most companies these will be individuals who:

  • Hold more than 25% of the company’s shares
  • Hold more than 25% of the company’s voting rights
  • Have the right to appoint or remove the majority of directors

If an individual does not meet the above conditions, check to see if you have anyone who:

  • Has the right to, or actually exercises, significant influence or control over the company

It could also be individual who:

  • Has the right to, or actually exercises, significant influence or control over a trust or company that meets one of the above conditions

There is some more information on how to identify your PSCs:
This is the statutory guidance issued by BIS Continue reading

People of Significant Control (PSC) Update

Incorporation Order Form

PSC’s must be provided upon Incorporation by the company, unless they have reason to believe that they don’t have any PSC’s, which will be rare.

The order form been modified to cater for these changes with the inclusion of: ‘Legal Person’, PSC Officer role and Nature of Control questions. The software suppliers have sought legal advice to ensure that the system complies with the new legislation but we understand that this may not necessarily result in the most practical of a user interface, they have already taken steps to improve the user experience and there will be further updates to the order form throughout July and August.

• You can now preview the form here: http://uat.order.efiling.co.uk/buy/standard/ Continue reading

PSC Registers Inserts

PSC Registers

We have added to our online shop inserts for Combined Company Registers purchased before April 2016 to cater for the new legislation for registers of Persons With Significant Control (PSC).

These come complete with a divider designed for the Ring binder styled combined registers. The section is divided into two parts, the first being for the information which is be disclosed when requested, the second part for the information that must not be disclosed. Included is guidance on the official wording for entries on the PSC registers

Failure to keep the Company’s PSC is a criminal offence.

 

Date of Implementation of Persons of Significant Control Registers (PSC)

Companies House had a target date of 6 April 2016 for the launch of these public registers (PSC), to achieve this they have been busily rewriting the coding which many would have noticed the slowing down in the times it takes to process various forms. We had become used to the 3 to 4 hour average which has now become closer to the 24 hour target time Companies House set themselves.

Due the volume of work to be undertaken and the various pieces of secondary legislation having to be passed through Parliament the implementation date has been put back to 1 July 2016.

Our programme providers who are still awaiting some of the schematics for the rewriting of our software Are confident that our software will be running and recording information into our registers which are PSC compliant before the official implementation date.

Companies House Service Update

Suspension on service 9 October

We have been advised by Companies House that submissions to them should cease at midday on Friday 9 October 2015 whilst they carry out updates to their system, and that they will also cease processing Same Day company formation requests after 10am on the same Friday. this Companies House service update is to allow for the changes to the systems which enable part two of the roll out of the Small Business, Enterprise and Employment Act which takes effect on the 10th October 2015. Continue reading

Changes to company registrations and officer appointments

The next roll out of the Small Business, Enterprise and Employment Act, which is phase two of the five stage roll out will take place on the 10th October 2015. The implementation is for partial date of birth suppression, the accelerated strike off time frame and consent to act requirements for company officers.  This makes changes to the current forms used in company registrations and officer appointments  Continue reading

The EU Fourth Money Laundering Directive adopted in June 2015

The EU Fourth Money Laundering Directive (4MLD) was adopted in June 2015.

One of the main requirements which are an enhancement over the 3rd directive is that it requires all Member States to hold central registers on company beneficial ownership information from 2017. The UK has been ahead of other Member States in creating its own central register. The directive draws heavily on the UK model although there are some minor differences between the two regimes. Continue reading