Money Laundering Regulations 2017—ongoing monitoring
Money Laundering Regulations 2017—ongoing monitoring

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

  • Money Laundering Regulations 2017—ongoing monitoring
  • What is ongoing monitoring?
  • When is ongoing monitoring required?
  • Why is it necessary?
  • How to conduct ongoing monitoring
  • Low risk customers/matters
  • High risk clients/matters
  • Reviewing existing CDD records
  • What is not required?

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.

What is ongoing monitoring?

Ongoing monitoring is made up of two limbs:

  1. 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

  2. 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)

When is ongoing monitoring required?

The obligation to conduct ongoing monitoring applies specifically to business relationships and