Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017—for law firms
Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017—for law firms

The following Practice 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—for law firms
  • Application
  • Risk assessment
  • Policies, controls and procedures
  • Client 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 POCA 2002 and the TA 2000, see Practice Notes: Proceeds of Crime Act 2002—key information for law firms and Counter-terrorist financing—key information for law firms.

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