The following Practice Compliance guidance note provides comprehensive and up to date legal information covering:
Client due diligence (CDD) is a central pillar of the anti-money laundering (AML)/counter-terrorist financing (CTF) regime. CDD requirements underpin 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.
Where the MLR 2017 apply (see Practice Notes: Money Laundering Regulations 2017—scope and application—law firms and Scope and application of the MLR 2017 for law firms—flowchart), conducting CDD is an absolute requirement. It is not in itself subject to the risk-based approach. Certain components of CDD however, allow for flexibility and positively require risk assessment.
Evidence of identity can be obtained in a number of forms and come from a number of sources. Whatever evidence you rely on, it must cause you to be reasonably satisfied as to your client’s identity.
For more information on CDD, see Practice Note: Money Laundering Regulations 2017—client due diligence—law firms.
This Practice Note is intended to act as a guide and contains suggested CDD measures for other arrangements or bodies and includes CDD guidance in relation to:
registered charities, church bodies and places of worship
a deceased person’s estate
schools or colleges
clubs, associations and societies
employee pension funds
other pension funds
UK or overseas governments, supranational organisations, government
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
0330 161 1234
To view our latest legal guidance content,sign-in to Lexis®PSL or register for a free trial.