The following Risk & Compliance guidance note provides comprehensive and up to date legal information covering:
As part of your customer due diligence (CDD) measures, you must conduct ongoing monitoring of your business relationships.
This Practice Note explains the ongoing monitoring requirements contained in 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 by the Money Laundering and Terrorist Financing (Amendment) Regulations 2019, SI 2019/1511 from 10 January 2020. 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 ongoing monitoring.
Ongoing monitoring is made up of two limbs:
scrutinising transactions throughout the course of the business relationship (including, where necessary, the source of funds) to ensure they are consistent with what you know about the customer, their business and risk profile, and
undertaking reviews of existing records and keeping the documents or information obtained for the purpose of applying CDD measures up-to-date (while taking into consideration your obligation to keep customers' personal data accurate and up-to-date under the data protection regime—see Practice Note: AML and data protection)
The obligation to conduct ongoing monitoring applies specifically to business relationships and
**excludes LexisPSL Practice Compliance, Practice Management and Risk and Compliance. 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
Take a free trial
0330 161 1234