Dr Tony Harvey examines the new draft money-laundering regulations
Following a Treasury consultation that ended in November 2016, the government has now published new draft anti-money laundering regulations.
The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 will take effect on 26 June 2017 and will replace entirely the current Money Laundering Regulations 2007 (SI 2007/2157).
The new regulations implement the Fourth EU Money Laundering Directive and the Fund Transfer Regulation. This is the fourth attempt by the EU to try to crack down on money laundered through criminal activity involving drugs, prostitution, slavery, racketeering, arms and, in particular, terrorism. It is estimated that these criminal activities are worth over £350bn worldwide annually.
The new regulations will attempt to ensure that the UK’s anti-money laundering (AML) and counter-terrorist financing regime is kept up to date, is effective and is proportionate.
Many of the provisions of the 2007 AML Regulations are repeated and will be familiar to legal compliance teams but there are some significant and important changes and additions to the regime.
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