Money Laundering Regulations 2017—CDD quick reference guide—Partnerships, LLPs and companies
Money Laundering Regulations 2017—CDD quick reference guide—Partnerships, LLPs and companies

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

  • Money Laundering Regulations 2017—CDD quick reference guide—Partnerships, LLPs and companies
  • Credit or financial institutions in the UK or EEA
  • Credit or financial institutions outside the EEA where equivalent AML provisions apply
  • Credit or financial institutions outside the EEA where no equivalent AML provisions apply
  • UK partnerships
  • UK partnerships made up of regulated professionals (eg solicitors, accountants, etc)
  • Well-known, reputable partnerships
  • UK private unlisted companies (including LLPs)
  • Subsidiary of existing private unlisted company for which CDD has been conducted
  • Companies listed on a regulated market
  • more

Forthcoming changes: The UK has voted to leave the EU and this will take place on exit day as defined in section 20 of the European Union (Withdrawal) Act 2018. This has implications for law firms. This Practice Note is likely to be affected. It will be updated as and when relevant implementing legislation is published. For more on Brexit, see Practice Notes: Brexit—anti-money laundering and counter-terrorist financing—law firms and Preparing for Brexit—key considerations and action planning—law firms.

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, which came into force on 26 June 2017.

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 partnerships, LLPs and companies and includes CDD guidance in relation to:

  1. Credit or financial institutions in the UK or EEA

  2. Credit or financial institutions outside the EEA where equivalent