Money laundering and the new regulations
17 April 2018
Money laundering is a priority risk for us. You will have seen in the latest issue of SRA Update that we published a thematic review of how firms are adapting to the new Government regulations and an accompanying warning notices.
We also published guidance on the new Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, which has been approved by the Treasury.
Included in this guidance is clarity for firms that are captured by the scope of the regulations and carry out work in a country outside the European Economic Area that does not allow the implementation of any of the requirements or equivalent measures.Regulation 20(4) requires such firms to notify us that they are not able to implement the regulations in that jurisdiction, and should therefore take additional steps to mitigate the risks of money laundering or terrorist financing arising from work in that country.
Firms should inform us as soon as they become aware. They should also tell us if they are registered with the Financial Conduct Authority or Prudential Regulation Authority, and provide their registration number. Regulation 25 requires us to review and approve any proposed course of action.
Firms can also contact our Ethics Guidance helpline if they are unsure how the regulations apply to them. Ethics Guidance can be called on 0370 606 2577.The following is a list of countries at high risk of not being considered equivalent for implementing the money laundering regulations