Money Laundering Regulations 2017—scope and application—law firms
Money Laundering Regulations 2017—scope and application—law firms

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

  • Money Laundering Regulations 2017—scope and application—law firms
  • Scope
  • Application
  • Jurisdictional reach and group policies
  • Examples

This Practice Note sets out the scope and application of 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.

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.

Scope

The MLR 2017 repeal and replace the Money Laundering Regulations 2007 (the 2007 Regulations) and implement the Fourth Money Laundering Directive (4MLD). They set administrative requirements for the anti-money laundering (AML) regime within the regulated sector and outline the scope of customer due diligence. The regulations aim to prevent the use of professional services for money laundering by requiring professionals to know their clients and monitor the use of their services by clients.

Application

The MLR 2017 apply to:

  1. relevant persons, ie:

    1. credit institutions

    2. financial institutions

    3. auditors, insolvency practitioners, external accountants and tax advisers

    4. independent legal professionals

    5. trust or company service providers

    6. estate agents