How the 2017 Money Laundering Regulations have evolved
IPA Insolvency Practitioner newsletter AML Digest, April 2023
Contents
- David Holland, Chief Inspector and IPA Money Laundering Reporting Officer
- High-risk countries for money laundering purposes: Enhanced Due Diligence
- Proliferation Financing
- Ongoing monitoring of AML matters in an appointment
- SAR reporting
- Licences from OFSI
- Insolvency Practitioner identity fraud and scam websites
- Reporting misuse of bounce back loans
- NCA Amber Alert: High Net Worth Individuals and Tax Evasion (member login required to view)
- AASG alerts (member login required to view)
- Regulation 18 risk assessment reviews
- Reporting of material discrepancies of Companies House records
- Economic Crime Levy
- OPBAS Sourcebook
- ISS AML training
- OFSI webinar
The 2017 Money Laundering Regulations (to give them their full name, The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017) replaced the 2007 Money Laundering Regulations and the 2007 Transfer of Funds (Information on the Payer) Regulations.
The 2017 Regulations implemented parts of the Fourth Money Laundering Directive and came into force on 26 June 2017.
Since 26 June 2017, there have been a number of amendments to the Regulations – some from subsidiary legislation that impacts on the Regulations – but specific changes to the 2017 Regulations are as follows:
- The Money Laundering and Terrorist Financing (Miscellaneous Amendments) Regulations 2018 came into force on 10 January 2019 and as part of the amendments brought in new due diligence measures for credit and financial institutions
- The Money Laundering and Terrorist Financing (Amendment) Regulations 2019 – came into force from 10 January 2020 and introduced the amendments arising from the 5th Money Laundering Directive. The IPA produced an overview of the changes which is on the Anti-Money Laundering page of our website and can be viewed here.
- The Money Laundering and Transfer of Funds (Information) (Amendment) (EU Exit) Regulations 2019 came into force from 31 January 2020 and were introduced to address failures of retained EU law to operate effectively from the withdrawal of the UK from the EU. In particular, referral to EU Member States was amended to third party countries.
- The Money Laundering and Terrorist Financing (Amendment) (EU Exit) Regulations 2020 – there are various introductory dates for specific parts of these amendment regulations, but the main provisions came into force on 6 October 2020 and addressed further failures of retained EU law to operate effectively from the withdrawal of the UK from the EU.
- The Money Laundering and Terrorist Financing (Amendment) (High-Risk Countries) Regulations 2021 came into force on 26 March 2021 and amended Reg 33 MLR17 to refer to a high-risk countries listed in Schedule 3ZA to MLR17.
- The Money Laundering and Terrorist Financing (Amendment) (No. 2) Regulations 2022 came into force 1 September 2022 and made a number of changes mainly to cryptoasset business and trust and company service providers, but also extended the obligation to report discrepancies to the registrar of companies and also make clear the supervisory authorities can request SARs from supervised members (Reg 66 1A).
- The Money Laundering and Terrorist Financing (High-Risk Countries) (Amendment) (No.3) Regulations 2022 came into force on 15 November 2022 and amended the list of high-risk third countries in Sch 3ZA to MLR17.
The amended and updated MLR17 is available on the IPA website’s AML section and can also be found here. The online legislation is up to date with all changes as at 3 March 2023.