Money Laundering Regulations 2017—application to law firms acting as tax advisers

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

  • Money Laundering Regulations 2017—application to law firms acting as tax advisers
  • Definition of tax adviser—when does it bite?
  • Material aid
  • Assistance
  • Advice v providing information
  • Stamp duty
  • Through a third party
  • The challenge
  • In scope examples
  • Compliance
  • More...

Money Laundering Regulations 2017—application to law firms acting as tax advisers

The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), SI 2017/692 form part of the UK’s overall anti-money laundering (AML) and counter-terrorist financing (CTF) regime. The MLR 2017 came into force on 26 June 2017, giving effect to the Fourth EU Money Laundering Directive (4MLD). They set administrative requirements which run parallel to the criminal element of the AML and CTF regime contained in the Proceeds of Crime Act 2002 and the Terrorism Act 2000. There is some overlap with this legislation.

The MLR 2017 apply to certain categories of persons acting in the course of business carried on in the UK (see Practice Note: Money Laundering Regulations 2017—scope and application—law firms). The main categories likely to be relevant to solicitors and law firms are:

  1. independent legal professionals participating in certain financial or real property transactions

  2. trust or company service providers

  3. auditors, insolvency practitioners, external accountants and tax advisers

  4. estate agents

The category that is most likely to be applicable to law firms is of course ‘independent legal professionals’, but this applies only in certain financial or real property transactions. The other categories listed above may also be applicable to law firms, depending upon the type of services offered, and you should consider whether your firm undertakes activities

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