The Government is currently seeking feedback on their intended amendments to the UK’s Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017. The consultation closes on 14th October 2021 with changes likely to be enforced from Spring 2022.
Once the UK left the EU, The Money Laundering and Terrorist Financing (Amendment) (EU Exit) Regulations 2020 were enacted, ensuring the UK’s approach to anti-money laundering and counter terrorist financing remained effective and proportionate. The proposed new amendments will strengthen the AML regime, whilst allowing for time-sensitive updates to ensure the UK continues to meet the international standards set by the Financial Action Task Force (FATF).
Money Laundering Regulation Objectives
The UK has had money laundering regulations in place for nearly 30 years, with the aim of detecting and preventing money laundering and terrorist financing. Whilst the regulations set rules and guidance for assessing, monitoring and mitgating the risks associated with financial crime, they aim to do so with as little burden on legitimate customers and businesses as possible.
Suggested MLR Amendments
Many of the proposed amendments focus on the business types and providers that should be considered for exemptions from the regulations. The consultation also details suggestions for identifying and assessing those at greater risk of proliferation financing. A third suggested amendment is to allow AML/CTF supervisors to see the actual report details of Suspicious Activity Reports (SAR) as opposed to just volumes or basic data.
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