
UK Government toughens money-laundering regulations
Daily news headlines
Kitty Ussher, economic secretary to the UK treasury, has published new regulations to fight money laundering and terrorist financing. The Money Laundering Regulations, which will come into effect on the December 15, are designed to ensure the UK’s response to money laundering at home and abroad is effective and proportionate.
“These regulations will strengthen further the UK’s defences against money laundering and terrorist finance,” said Ussher. “In line with the government’s financial crime strategy, these regulations introduce tough and targeted new measures where the risks are greatest, and at the same time ensure that businesses and consumers in low-risk situations face fewer burdens than previously.”
These regulations are the result of extensive consultation with both the private sector and law enforcement, including two written consultation documents, and carefully balance the views of different parties.
The main changes to the current regime involve extending supervision to all businesses in the regulated sector to secure greater compliance with anti-money laundering controls including, for the first time, estate agents, trust and company service providers and consumer credit businesses; strict tests to ensure money services business and firms that help set up and manage trusts and companies are not run for criminal purposes; requiring extra checks on customers that pose a higher risk of money laundering (for example foreign heads of state and non-face-to-face customers).
The regulations are intended to reduce regulatory burdens in low-risk areas. In practice, firms will be able to make fewer checks in low-risk situations, such as occupational pension funds and child trust fund administration. The number of identity checks will be reduced, with firms being able to rely upon checks made by certain other firms (for example solicitors and FSA-accredited financial advisers); and greater flexibility will be introduced to record-keeping rules so that firms can keep only the details that are important to them, rather than whole documents.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@risk.net
More on Regulation
SEC cyber rules risk creating web of confusion and costs
Proposals would require breach notifications, public disclosures and annual cyber assessments
Indonesia readies close-out netting after passing P2SK Law
Bankruptcy law changes remove close-out netting obstacles
Behnam comments fan JSCC hopes for US client clearing
Japan clearing exec welcomes CFTC chair’s pledge to keep discussing OTC clearing status for non-US houses
Top 10 operational risks: The umpire strikes back
Tougher regulatory enforcement, new consumer rules and rise of ESG are ringing alarm bells
SVB wouldn’t happen in Europe, says Deutsche CIB head
Campelli also thinks Credit Suisse’s bailed-in AT1 bonds acted as originally intended
How Finma milked Credit Suisse’s CoCos to close UBS deal
An unusual clause in Swiss AT1 bonds allowed them to be written off, but could others follow suit?
Fed’s climate stress test whips up storm for banks
Long-awaited US climate risk exercise puts tough pressure on banks’ data and models