The Money Laundering Regulations 2007 are the UK’s secondary legislation which implements the Third European Money Laundering Directive. It brings into UK law the elements of the Directive. It is written in a clearer to understand method to aid relevant people to be clear on their requirements under the Regulations. These are the latest version, repealing the Money Laundering Regulations 2003 which first bought the non financial professional into the regime.
- Require firms to take measures to identity their customers
- Specify the policies and procedures that financial institutions and other relevant businesses must put in place in order to prevent and identify activities relating to money laundering and terrorist financing.
- Require businesses in the regulated sector to appoint a Nominated Officer to receive internal reports from staff with knowledge or suspicion of money laundering or terrorist financing.
- Set out the supervision and registration arrangements.
These policy and procedures aimed at the firm are there to help individuals fulfil their obligations under the primary legislation.
In Regulation 18 of the Money Laundering Regulations 2007 we have a requirement for further secondary legislation for those who may be subject to a sanctions regime. This includes targets listed by the United Nations, European Union and United Kingdom under legislation relating to current financial sanctions regimes. It is a criminal offence to make payments or allow payments to be made to these targets. This area will be expanded in the section on client due diligence.