This record keeping checklist pulls together requirements in the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), SI 2017/692, as amended. It also contains recommended actions. The Checklist signposts relevant Precedents you can use or adapt to comply with these requirements and recommendations. For more guidance, see Practice Note: Money Laundering Regulations 2017—record keeping or, for law firms, Money Laundering Regulations 2017—record keeping (law firms). It does not matter in what form or format the records are held or where they are located, as long as you are able to retrieve relevant information and evidence without delay, particularly if you are called on to respond to provide customer/client due diligence (CDD) documentation where another entity relies on you, or to investigators or other enforcement officers. Record type For how long? Compulsory or recommended? Comments (if any) ☐ Records, documents or information relating to and in the context of an occasional transaction Five years from the date on which you know or have reasonable grounds

Law firms are subject to general professional and regulatory obligations in relation to record keeping simply by virtue of being both a business in the UK and regulated by the SRA. Firms are also under additional and separate record keeping obligations under the anti-money laundering (AML), counter-terrorist financing (CTF) and counter-proliferation financing regime. This Practice Note explains the regulatory requirements relating to AML, CTF and counter-proliferation financing record keeping as set out in the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), SI 2017/692, as amended. Separate subtopic: Information management and security discusses more general record keeping obligations. If you are subject to the MLR 2017, you must establish and maintain appropriate and risk-sensitive policies and procedures relating to record keeping (see Practice Note: Money Laundering Regulations 2017—scope and application—law firms for guidance on whether you are subject to the MLR 2017). Record keeping is an essential component of the AML, CTF and counter-proliferation financing regime because it: • evidences your compliance with regulatory obligations,

This register of non-compliance and corrective actions can be used by the independent audit function to log specific incidences of non-compliance identified in the course of the organisation’s

This Practice Note reflects the requirements of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), SI 2017/692, as amended. It also reflects guidance published by the Joint Money Laundering Steering Group (JMLSG) and Legal Sector Affinity Group (LSAG) AML guidance for the Legal Sector. Often a customer may instruct other advisors or be in professional contact with other relevant persons in the same matter, eg in the context of a large transaction, the customer may also instruct accountants or tax professionals. Equally, the customer may already be instructing a separate part of your business group. Since having several requests for the same information from these various advisors and business partners can be somewhat frustrating for the customer, and totally unnecessary, the MLR 2017 permit you to rely on others to conduct the customer due diligence (CDD) process, subject to limitations. It's extremely important to note that: • you will remain liable for any failure of the third party in applying CDD measures, and

This Practice Note reflects the requirements of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), SI 2017/692, as amended. It also reflects guidance published by the Joint Money Laundering Steering Group (JMLSG) and Legal Sector Affinity Group (LSAG) AML guidance for the Legal Sector. Often a client may instruct other advisors or be in professional contact with other relevant persons in the same matter, eg in the context of a large transaction, the client may also instruct accountants or tax professionals. Equally, the client may already be instructing a separate part of your business group. Since having several requests for the same information from these various advisors and business partners can be somewhat frustrating for the client, and totally unnecessary, the MLR 2017 permit you to rely on others to conduct the client due diligence (CDD) process, subject to limitations. It's extremely important to note that: • you will remain liable for any failure of the third party in applying CDD measures, and • failure

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, as amended. Scope The MLR 2017 form part of the UK’s overall anti-money laundering (AML), counter-terrorist financing (CTF) and counter-proliferation financing regime. They set administrative requirements that run parallel to the criminal element of the regime contained in the Proceeds of Crime Act 2002 (POCA 2002), the Terrorism Act 2000 (TA 2000) and various pieces of sanctions legislation. There is some overlap. The MLR 2017 have been amended a number of times since coming into force in June 2017. See further Practice Note: Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017—key information for businesses. Application The MLR 2017 apply to: • relevant persons, ie: ◦ credit institutions ◦ financial institutions ◦ auditors, insolvency practitioners, external accountants and tax advisers ◦ independent legal professionals ◦ trust or company service providers ◦ estate agents and letting agents

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, as amended. It is intended for law firms. Scope The MLR 2017 form part of the UK’s overall anti-money laundering (AML), counter-terrorist financing (CTF) and counter-proliferation financing regime. They set administrative requirements which run parallel to the criminal element of the regime contained in the Proceeds of Crime Act 2002 (POCA 2002), the Terrorism Act 2000 (TA 2000) and various pieces of sanctions legislation. There is some overlap. The MLR 2017 have been amended a number of times since coming into force in June 2017. The MLR 2017 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. See further Practice Note: Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017—for law firms Application The MLR 2017 apply to:

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: • your organisation-wide risk assessment—see Practice Note: How to identify and assess organisation-wide risks under the Money Laundering Regulations 2017 and Precedent: Money laundering, terrorist financing and proliferation financing organisation-wide risk assessment • relevant information made available to you by your supervisory authority, and • the risk factors set out at section: Assessing the risk 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, as amended. 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 requirements in relation to SDD. Counter-proliferation financing is an established component

You may apply simplified client 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: • your firm-wide risk assessment—see Practice Note: How to identify and assess firm-wide risks under the Money Laundering Regulations 2017—law firms and Precedent: Money laundering, terrorist financing and proliferation financing firm-wide risk assessment—law firms • relevant information made available to you by your supervisory authority, and • the risk factors set out at section: Assessing the risk 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, as amended. Counter-proliferation financing is an established component of the anti-money laundering (AML) and counter-terrorist financing (CTF) regime. Requirements in relation to counter-proliferation financing were introduced through amendments to the MLR 2017 and include in relation to systems and controls, risk assessment, etc.

This Practice Note sets out key obligations in relation to source of funds and wealth and the difference between the two concepts. It also covers what to do if you are concerned. It provides guidance which is of general application, with specific guidance for firms supervised for anti-money laundering (AML) purposes by the SRA. If you are not a law firm and/or the SRA is not your AML supervisor, you should check whether additional or varied requirements apply for your sector and whether your regulatory body has any additional, sector specific requirements in relation to source of funds and wealth. Source of funds v source of wealth Source of funds and source of wealth do not mean the same thing, although there can be significant overlap between the two and they do not exist in isolation to each other. Source of funds refers to the origin of the funds used for the transactions or activities that occur within the client’s business relationship with you. Checking source of funds should not be limited

This document reflects Legal Sector Affinity Group (LSAG) AML guidance. Requirement Compulsory or recommended? Comments (if any) ☐ Establish and maintain a written procedure in relation to source of funds and source of wealth Compulsory The procedures may form part of the firm’s wider AML policies, controls and procedures; a separate standalone document is not required. They should explain when enquiries are required, how evidence is assessed and recorded, and how unresolved concerns are escalated.See Precedent: AML, CTF and counter-proliferation financing policy—law firms.Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), SI 2017/692, reg 19SRA, Thematic review of source of funds and wealth complianceSRA Sectoral Risk Assessment—Anti-money laundering, terrorist financing, proliferation financing and sanctions (Insert any comments you may wish to make regarding your firm’s arrangements) ☐ Ensure staff are aware of the difference between source of funds and source of wealth Recommended See Precedents:—AML, CTF and counter-proliferation financing policy—law firms—Establishing the source of funds and source of wealth—guidance table

The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017), SI 2017/692, as amended, include requirements relating to staff training and awareness, which are compulsory for organisations caught by the MLR 2017. Even if your organisation is not subject to the MLR 2017, the money laundering offences under the Proceeds of Crime Act 2002 and the terrorist financing offences under the Terrorism Act 2000 may still apply to your organisation and its partners/directors and staff. This does not mean that every individual has a general legal obligation to report suspected money laundering: reporting obligations depend on the applicable statutory provisions and the circumstances. Reporting obligations relating to terrorist financing can also arise outside the regulated sector. Whether or not your organisation is subject to the MLR 2017, you may therefore want to provide training on money laundering, terrorist financing and proliferation financing issues to your staff as a matter of course. This Practice Note provides guidance which is of general application. It sets out the requirements