Money laundering and pensions
Published by a LexisNexis Pensions expert
Last updated on 27/07/2020

The following Pensions practice note provides comprehensive and up to date legal information covering:

  • Money laundering and pensions
  • Anti-money laundering regime
  • How does MLR 2017 apply in respect of pension schemes?
  • Pensions impact of the Fifth Money Laundering Directive (MLD5)
  • Meaning of ‘TCSP’, ‘relevant trust’ and ‘taxable relevant trust’
  • TCSP
  • Relevant trust
  • Taxable relevant trust
  • Meaning of ‘beneficial owner’, ‘settlor’ and ‘potential beneficiary’
  • Record-keeping requirements
  • More...

Money laundering and pensions

Anti-money laundering regime

The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, SI 2017/692 (MLR 2017) form part of the UK's overall anti-money laundering and counter-terrorist financing regime. They came into force on 26 June 2017 to give effect to Archived Directive (EU) 2015/849 (commonly known as the Fourth Money Laundering Directive or MLD4), in line with Article 67 of that Directive. The MLR 2017 replace the Money Laundering Regulations 2007, SI 2007/2157 (the old Money Laundering Regulations 2007).

While European Directives (like MLD4) are generally not retained EU law and thus do not apply in the UK post-completion-day'>IP completion day (11pm on 31 December 2020), the domestic UK law which implements them (like MLR 2017) is retained EU law and thus continues to apply.

MLR 2017 set administrative requirements which run parallel to the criminal element of the anti-money laundering and counter-terrorist financing regime contained in the Proceeds of Crime Act 2002 and the Terrorism Act 2000. There is some overlap with this legislation.

MLR 2017 were adopted following two consultations by HM Treasury:

  1. a first consultation on the transposition of MLD4 launched in September 2016, and

  2. a further consultation launched in March 2017, which gave an outline of the responses submitted to the first consultation and the government’s policy decisions. This second consultation was accompanied by a draft

Related documents:
Key definition:
Money laundering definition
What does Money laundering mean?

Money laundering or the use or process of taking the proceeds of criminal activities and making them appear legal is an activity which bankers are required to prevent and report under certain regulations.

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