UK Regulation - Money Laundering Regulations 2007

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Money Laundering Regulations 2007 is the implantation act of AMLD III in the United Kingdom of Great Britain and Northern Ireland. The regulations seek to impose a better regime to control money laundering and terrorist financing.

Background

AMLD III is the third Anti-Money Laundering Directive passed by the EU. Money Laundering Regulations 2007 was passed in order to implement the directive. Prior anti-money laundering acts include the Proceeds of Crime Act 2002 and Terrorism Act 2000.

Due Diligence Requirements

Money Laundering Regulations 2007 creates new requirements in verifying the identity of customers.

CustomerDue Diligence

The Anti-Money Laundering Regulations 2007 require that due diligence be exercised when:

  • Establishing a relationship with another firm
  • Carrying out a transaction of €15000 or more
  • If a firm suspects money laundering or attempts to finance terrorism
  • If the identification documents, data, or any other type of identifying records received are in doubt

Additionally any regulated firm must establish the beneficial owner of any account

Simplified Due Diligence

Simplified Due Diligence can be exercised when dealing with:

  • Regulated companies subject to AMLD III
  • Listed Companies
  • UK public authorities
  • Public Authorities that meet certain criteria
  • Transactions that involve certain products
  • Dealing with a child trust fund[1]


Enhanced Due Diligence

Certain customers are required to have more anti-money laundering measures in place. They include:

  • Customers who are not physically present when opening an account.
  • Credit institutions that have relationships with non-EEA banks
  • Politically Exposed Persons
  • Any other situations that have a high risk for money laundering [2]

Criminal Sanctions

Fines and up to two years in prison for failure to comply with Money Laundering Regulations 2007. [3]


Money Laundering Regulations 2007 as Passed by Parliament

References

  1. Money laundering regulations 2007. Freshfields. Retrieved on June 9th, 2015.
  2. Money laundering regulations 2007. Freshfields. Retrieved on June 9th, 2015.
  3. An Introduction to the UK Anti-Money Laundering Regime. Slaughter and May. Retrieved on June 9th, 2015.

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