Industry News

Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017

20 September 2017

The main aim of the 2017 Regulations is to ensure that the UK’s anti-money laundering and counter terrorist financing regimes are comprehensive, up to date, effective and also proportionate, so that our financial system is 'an increasingly hostile environment for money laundering and terrorist financing’. 

Many of the changes required by the Fourth Directive have already been integrated into UK law, but the main change under the 2017 Regulations will relate to enforcement, which will be far more robust, including more criminal offences, as well as increased administrative sanctions, which enable supervisory authorities to impose civil penalties (e.g. fines, statements, suspensions, removal of authorisation, injunctions, powers to prohibit individuals from managing and additional FCA disciplinary measures) on those contravening a relevant requirement imposed on them.

Briefly, key changes include: 

  • relevant persons are required to adopt a more risk-based approach towards anti-money laundering, particularly in their due diligence, the appropriate level of which requires an analysis of risk factors (in the Regulations and SRA/Law Society information) and then produce a written risk assessment. The Law Society Practice Note provides that you should consider (but are not limited to):
    • whether you have a high client turnover or a stable client base; 
    • whether you have clients based in jurisdictions where there is a higher risk of money laundering or terrorist financing
    • whether you have clients who operate in sectors that, by their nature, pose a higher risk of money laundering; ......

For a full copy of this article, including LBS Legal’s advice about the steps you should take in relation to the new Regulations, email Andre Tahmassian-Zarneh at andre.zarneh@lbslegal.co.uk or contact him on 07572 068105.

 

For a full copy of this article, including LBS Legal’s advice about the risks to which you and your practice may be exposed and the steps you can take to mitigate those risks, email Andre Tahmassian-Zarneh (Compliance Consultant) at andre.zarneh@lbslegal.co.uk or contact him on 07572 068105.


For a full copy of this article, including LBS Legal’s advice about the risks to which you and your practice may be exposed and the steps you can take to mitigate those risks, email Andre Tahmassian-Zarneh (Compliance Consultant) at andre.zarneh@lbslegal.co.uk or contact him on 07572 068105.


Ian Braithwaite
Client Relationship Manager

T: 0113 385 4483
M: 07432 695 289
E: ian.braithwaite@lbslegal.co.uk

For General Enquiries: Email enquiries@lbslegal.co.uk
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