Money Laundering Regulations 2017—simplified due diligence
Money Laundering Regulations 2017—simplified due diligence

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

  • Money Laundering Regulations 2017—simplified due diligence
  • What is simplified due diligence?
  • Assessing the risk
  • Pooled accounts
  • SDD measures
  • Caution

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 organisations. 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 subtopic: Brexit—compliance and risk management.

You may apply simplified customer due diligence (SDD) measures in relation to particular business relationships or transactions which you determine present a low risk of money laundering or terrorist financing, having taken into account:

  1. your organisation-wide risk assessment—see Practice Note: Money Laundering Regulations 2017—identifying and assessing organisation-wide risks and Precedent: Money laundering and terrorist financing organisation-wide risk assessment

  2. relevant information made available to you by your supervisory authority, and

  3. the risk factors set out at Assessing the risk below

This Practice Note explains your options around SDD and what it means for you in practice. It reflects 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. 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