Money Laundering Regulations 2017—impact on trustees
Money Laundering Regulations 2017—impact on trustees

The following Private Client guidance note provides comprehensive and up to date legal information covering:

  • Money Laundering Regulations 2017—impact on trustees
  • Background to Money Laundering Regulations 2017
  • Application of MLR 2017 to trusts and trustees
  • Relevant persons
  • Requirement to register for supervision for anti-money laundering purposes
  • Record-keeping and disclosure of beneficial ownership information by trustees
  • Trustees’ obligations to register taxable relevant trusts with HMRC
  • Action points for trustees
  • 5MLD, Brexit impact and future amendments to MLR 2017

FORTHCOMING CHANGE: The fifth anti-money laundering directive (5MLD) was published in the EU official journal on 19 June 2018 and came into force on 9 July 2018. The directive introduces broader access to information on beneficial ownership of companies and trusts, and tighter controls on certain transactions. In particular, all express trusts (not just those with a UK tax liability in a particular tax year) would need to be registered with the Trusts Registration Service (TRS) under the extended rules. Member states must transpose the directive into their national laws by 10 January 2020. The government ran a consultation from 15 April to 10 June 2019, seeking views on the transposition of 5MLD into national law. See: Fifth Money Laundering Directive published in EU official journal, LNB News 22/06/2018 41.

Background to Money Laundering Regulations 2017

The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), SI 2017/692 form part of the UK’s overall anti-money laundering and counter-terrorist financing regime. They came into force on 26 June 2017 to give effect to the EU’s fourth Anti-Money Laundering Directive (EU) 2015/849 (4MLD) in line with Article 67 of that Directive. MLR 2017, SI 2017/692 replaced the Money Laundering Regulations 2007, SI 2007/2157.

MLR 2017, SI 2017/692 set administrative requirements which run parallel to the