Money Laundering Regulations 2017—CDD and beneficial ownership
Money Laundering Regulations 2017—CDD and beneficial ownership

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

  • Money Laundering Regulations 2017—CDD and beneficial ownership
  • What/who is a beneficial owner?
  • Customer due diligence requirements
  • Customer's obligation to provide beneficial ownership information—corporate bodies and trusts
  • Beneficial ownership registers
  • Identifying and verifying beneficial owners—company or LLP
  • Identifying and verifying beneficial owners—trusts
  • Identifying and verifying beneficial owners—other customer types
  • If you cannot establish beneficial ownership
  • Record keeping
  • more

The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), SI 2017/692, as amended by the Money Laundering and Terrorist Financing (Amendment) Regulations 2019, SI 2019/1511, from 10 January 2020, impose obligations on organisations in relation to beneficial owners.

This Practice Note:

  1. explains:

    1. the concept of beneficial ownership

    2. who is categorised as a beneficial owner, and

    3. what is required by way of client due diligence (CDD) measures

  2. covers:

    1. requirements for certain clients to supply information about their beneficial owners, and

    2. what information is available via beneficial ownership registers

  3. provides guidance on:

    1. what use you can/should make of information contained in these registers when conducting CDD, and

    2. the requirement to report discrepancies in beneficial ownership information

This Practice Note is not intended to be a guide for corporate bodies or trusts on their obligations in relation to their own beneficial ownership information under the MLR 2017.

The guidance in this Practice Note is of general application. You should check whether the MLR 2017 contain additional or varied requirements for your sector and whether your regulatory body has any additional, sector-specific requirements in relation to beneficial ownership.

What/who is a beneficial owner?

The MLR 2017 identify six main categories of entity or arrangement that may have a beneficial owner:

  1. body corporate

  2. partnership

  3. trust

  4. foundation or other legal arrangement