AML and data protection
AML and data protection

The following Risk & Compliance practice note provides comprehensive and up to date legal information covering:

  • AML and data protection
  • The data protection regime
  • How is data protection regulated?
  • GDPR
  • Who is the regulator?
  • What is personal data?
  • Lawful ground for processing
  • Restriction on processing personal data for non-AML/CTF purposes
  • Information requirements
  • Protecting and retaining CDD data
  • More...

Brexit: As of exit day (31 January 2020), the UK is no longer an EU Member State, but it has entered an implementation period during which it continues to be treated by the EU as a Member State for many purposes. The UK must continue to adhere to its obligations under EU law, including in relation to data protection, and the ICO has confirmed the GDPR will continue to apply during the implementation period. For more information, see: Practice Note: Brexit—implications for data protection.

The provisions of the General Data Protection Regulation (GDPR) and the Data Protection Act 2018 (DPA 2018) creates some challenges under the anti-money laundering (AML) and counter-terrorist financing (CTF) regime, including:

  1. complying with information requirements

  2. the requirement not to use personal data collected for AML/CTF reasons for other purposes

  3. protecting the customer data you collect during the customer due diligence (CDD) process

  4. sharing customer data with law enforcement agencies, eg by making suspicious activity reports (SARs) or responding to enquiries, and

  5. data subject access requests (DSARs) and tipping-off offences

This Practice Note begins with a brief overview of the data protection regime and its principles and then explains these challenges, providing practical guidance on how to approach them. It reflects the requirements of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), SI 2017/692

Popular documents