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1st September 2022 – NEW/UPDATED UK AML REGS

29/07/2022

Changes to the UK Money Laundering and Terrorist Financing Regulations (2017) [UK AML REGS] are currently before Parliament and expected to come into force by 1st September 2022, which means firms must comply with applicable regulations from this date.

THE draft regulations are here

What does this mean for you?

  • Outlined below are some notable additions that these draft regulations make to the UK Money Laundering and Terrorist Financing Regulations (2017).
  • We think you will find these of interest, as some may require action to enhance your organisation's financial crime control framework.

Overview of changes

  1. Regulation - 18A
  • An addition to ML/TF in their Risk Assessment
  • Firms will need to include Proliferation Financing
  1. Regulation - 19A
  • Where the Risk Assessment identifies Proliferation Financing risk exposure,
  • Firms will need to ensure they have established policies, controls and procedures to mitigate the identified risk.
  1. Regulation - 30A
  • Firms will be required to report material discrepancies in beneficial ownership information.
  • From April 2023, this requirement will be extended to ongoing CDD (not just CDD prior to establishing a business relationship).
  • The reporting requirement will also be extended to the Register of Overseas Entities introduced by the recent Economic Crime (Transparency and Enforcement) Act 2022.
  1. Regulation - 52
  • Expanded to allow the FCA to disclose confidential information received in relation to its duties under the existing Money Laundering Regulations.
  1. Regulation - 59
  • Changed to allow the FCA and HMRC to publish notices of refusal to register firms.
  1. Regulation - 66
  • Strengthens supervision powers to be able to access and assess SARs filed by firms with the National Crime Agency (NCA).
  1. Others
  • The new regulations will contain provisions concerning the transfer of crypto assets and the removal of Account Information Service Providers from the scope of the regulations. They will also enable artists to sell their own works without having to perform CDD.

UNITED KINGDOM