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

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

  • Money Laundering Regulations 2017—scope and application
  • Scope
  • Application
  • Credit institutions and financial institutions
  • Cryptoasset exchange and custodian wallet providers
  • Auditors, insolvency practitioners, external accountants and tax advisers
  • Independent legal professionals and trust or company service providers
  • Estate agents and letting agents
  • High value dealers, casinos, auction platforms and art market participants
  • Acting in the course of business in the UK
  • More...

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, as amended from 10 January 2020 by the Money Laundering and Terrorist Financing (Amendment) Regulations 2019, SI 2019/1511.

Scope

The MLR 2017 repealed and replaced the Money Laundering Regulations 2007 (the 2007 Regulations) and implemented the Fourth EU Money Laundering Directive in the UK. They set administrative requirements for the anti-money laundering (AML) regime within the regulated sector and outline the scope of customer due diligence. The MLR 2017 aim to prevent the use of professional services for money laundering by requiring professionals to know their customers and monitor the use of their services by customers.

Application

The MLR 2017 apply to:

  1. relevant persons, ie:

    1. credit institutions

    2. financial institutions

    3. cryptoasset exchange providers

    4. custodian wallet providers

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

    6. independent legal professionals

    7. trust or company service providers

    8. estate agents and letting agents

    9. high value dealers

    10. casinos

    11. auction platforms

    12. art market participants

  2. acting in the course of business carried on by them in the UK

  3. who do not benefit from one of the very narrowly-drawn exclusions in Regulation 15

Credit institutions and financial institutions

The following definitions apply:

Credit institutionFinancial institution
A credit institution as

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