HMRC have updated their online Money laundering guidance to reflect changes to legislation from 26 June 2017 and published two new guides on enforcement measures and fit and proper test and approval.
With effect from 26 June 2017, the Money Laundering Regulations 2007 (SI 2007/2157) are replaced by the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (SI 2017/692). New guides published are: Money laundering supervision: enforcement measures - detailed guidance to enable businesses to have written risk assessment, policies, controls and procedures in place to prevent others using them to launder money or finance terrorism. Businesses are also required to report suspicious transactions to the National Crime Agency (NCA) meet their obligations. Money laundering supervision: fit and proper test and approval - this guide explains the fit and proper test, the approval process and who it applies to. It explains how to apply and what happens if anyone fails the test or isn’t approved. It also explains what to do when there are changes to the personnel of the business. Guidance document updates include: Money laundering supervision: report suspicious activities - including how to send a Suspicious Activity Report to the National Crime Agency and proceed with a suspicious activity or transaction Money laundering supervision: introduction - including adding 2 further business sectors that are now supervised by HMRC. These are 'bill payment service providers' and 'telecommunication, digital and IT payment service providers'. Money laundering supervision: fees - information about refunds and fees to pay to add or remove a premises from the registration has been added and the 'Approval process fee' has been amended to remove the monetary amount as the fee will be advised. Money Laundering Regulations: risk assessments - to explain that providers have to complete a risk assessment of customers and removed the section on the source of funds check. Money laundering supervision: nominated officers and employee training - larger and more complex businesses must appoint a member of the board or senior management to act as a compliance officer and will be responsible for their compliance obligations. Money Laundering Regulations: your responsibilities - to explain when high value dealers need to complete due diligence and clarify who counts as a politically exposed person. Also removed the section on transmissions to high risk countries and financial corridors. Money laundering supervision: who needs to register - including carrying out a business in the UK. Money laundering supervision: business premises you need to register - the examples of premises that must register with HMRC now include 'virtual offices' and 'agent premises'. New guidance has been added for registering where there are several outlets at one address. Money laundering supervision: the fit and proper test and approval - information about the new approval process has been added. Money laundering supervision: business inspections - clarifying the information the officer needs to see. Money laundering supervision: appeals and penalties - including a link to further guidance on enforcement measures. Money laundering supervision for accountancy service providers - to explain that providers who have virtual or automated services may need to register but providers who only give generic, basic tax information may not. Money Laundering Regulations 2017: supervision of estate agency businesses Money laundering supervision: guidance for high value dealers Money laundering supervision for trusts or company service providers - to provide more information about mailbox services and explain who doesn't need to register. Money laundering supervision: guidance for trust or company service providers Money laundering supervision: guidance for money service businesses Money laundering supervision for money service businesses - to include guidance for bill payment service providers and telecommunication, digital and IT payment service providers.All the guidance documents can be found here: Money laundering regulations.
