Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017—a summary
Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017—a summary

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

  • Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017—a summary
  • Application
  • Risk assessment
  • Policies, controls and procedures
  • Customer due diligence
  • Enforcement, offences and penalties

The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), SI 2017/692 form part of the UK's overall anti-money laundering (AML) and counter-terrorist financing (CTF) regime. They came into force on 26 June 2017 and give effect to the Fourth Money Laundering Directive (4MLD). They set administrative requirements which run parallel to the criminal element of the AML and CTF regime contained in the Proceeds of Crime Act 2002 (POCA 2002) and the Terrorism Act 2000 (TA 2000). There is some overlap with this legislation.

In July 2018, the Fifth Money Laundering Directive (5MLD) came into force. It is an ‘Amending Directive’ because it amends 4MLD. Implementing the requirements of 5MLD involved the UK government making changes to the MLR 2017 through the Money Laundering and Terrorist Financing (Amendment) Regulations 2019, SI 2019/1511, in force from 10 January 2020. This Practice Note reflects the amended MLR 2017.

For more on the POCA 2002 and the TA 2000, see Practice Notes: Proceeds of Crime Act 2002 and Counter-terrorist financing—key information for businesses.

Application

The MLR 2017 apply to relevant persons acting in the course of business in the UK. Relevant persons are:

  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