New Money Laundering Regulations are due to come into force this summer, implementing the EU Fourth Money Laundering Directive.
Amy Bell, previously a specialist AML adviser to the Law Society, and now a Risk Consultant for Lockton, recently presented a webinar for Lockton's Solicitor clients outlining the key provisions of the new AML regulations , which is now available for any time viewing.
Overview of the new Money Laundering Regulations
The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations will replace the Money Laundering Regulations 2007.
The original date for implementation was 26th June, but, since the election was called, there is some uncertainty about the exact date when the new regulations will come into effect, but there is not expected to be much delay to the original timetable.
If you are not already prepared to implement the anticipated changes, you should therefore prepare now.
Overview of key changes
Solicitors have been identified as 'high risk' from a Money Laundering perspective, in the UK governement's current National Risk Assessment. The SRA undertook some research on 250 firms, following this assessment, and found that the standard of Anti-Money Laundering processes amongst firms was generally high.
Regulated firms, including solicitors, must carry out a risk assessment as part of any client & transaction vetting process. Source of funds is one of several risk factors that you should take into account. The nature of services you provide are also relevant. Conveyancing transactions are particularly susceptible to money laundering attempts.
There are a list of specific circumstances where enhanced due diligence will be required. The definition of 'Politically Exposed Persons' has also been expanded - and extended due diligence will be required for such persons for a year after they have ceased to be defined as a PEP.
More Policies & Procedures
Your policies and controls must be proportionate to the size and nature of your firm, and be based on your risk assessment.
Depending on the size and type of business, firms must appoint someone at board level to manage compliance with the regulations.
There must also be a mechanism for flagging unusual/high risk/particularly complex files.
Training has always been an important part of AML requirements, and the new regulations are no exception. There is now likely to be a requirement to include data-protection training as part of the regular training provided.
Watch our webinar
Click on the slide below to register and watch our latest AML webinar.
The webinar covers:
• Changes to the definition and requirements in relation to beneficial owners
• What do you need to include in your risk assessments
• New controls to manage and mitigate the risk of money laundering
• Changes to when you are required to apply enhanced due diligence measures
• The new definition of Politically Exposed Person
• New Data Protection requirements
For more information & Guidance
Sign up for one of our four AML Masterclasses, being held
- London, 15th June
- Manchester, 16th June
- Birmingham, 26th June
- Bristol, 27th June
We can also provided access to discounted AML support.
Contact Us for more information.