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

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

  • Money Laundering Regulations 2017—CDD and beneficial ownership
  • What/who is a beneficial owner?
  • Beneficial ownership of a body corporate
  • Beneficial ownership of a partnership
  • Beneficial ownership of a trust
  • Beneficial ownership of a foundation or other legal arrangement similar to a trust
  • Estate of a deceased person in the course of administration
  • Beneficial ownership of any other legal entity or legal arrangement
  • Any other case
  • Customer due diligence requirements
  • More...

The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), SI 2017/692, as amended, 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 customer due diligence (CDD) measures

  2. covers:

    1. requirements for certain customers 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. corporate body (including limited liability partnership (LLP)) which is not a company whose securities are listed on a regulated market

  2. partnership

  3. trust (subject to exclusions)

  4. foundation or other legal arrangement similar

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