Money Laundering Regulations 2017—enhanced due diligence
Money Laundering Regulations 2017—enhanced due diligence

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

  • Money Laundering Regulations 2017—enhanced due diligence
  • EDD triggers
  • Matters identified by organisation-wide risk assessment
  • High-risk third countries
  • Politically exposed persons (PEPs)
  • Customer provided false or stolen identification documentation or information
  • Complex or unusual transactions
  • Other high risk matters
  • Product/transaction favours anonymity
  • Non-face-to-face customers
  • more

This Practice Note explains your obligations around enhanced due diligence (EDD) and what it means for you in practice. It reflects 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, as amended from 10 January 2020 by the Money Laundering and Terrorist Financing (Amendment) Regulations 2019, SI 2019/1511. It provides guidance which 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 EDD.

EDD triggers

You must apply EDD measures and enhanced ongoing monitoring:

  1. in any case identified as presenting a high risk of money laundering or terrorist financing in your organisation-wide risk assessment or by your supervisory authority

  2. in any business relationship with a person established in a high-risk third country or in relation to any relevant transaction where either of the parties to the transaction is established in a high-risk third country—see High-risk third countries below

  3. where you have determined that the customer/potential customer is a politically exposed person (PEP), or a family member or known close associate of a PEP

  4. where you discover that a customer has provided false or stolen identification documentation or information for