Q. What are the Money Laundering Regulations?

Q. What are the Money Laundering Regulations?

The ML Regulations are the UK’s secondary legislation in the AML/CFT regime. they where first introduced in 1993 and the 2007 Regulations are just the latest version.

The 2003 Regulations, effective 1 March 2004 bough the professional such as the accountant, estate agent or solicitor into the regulated sector. The Regulations are activity based so therefore does not discriminate between the qualified or the unqualified.

The Regulations are for firms to adopt policies and procedures to reduce the risk of money laundering taking place within their business. They are to help the individual fulfil their obligation to report suspicious activity under POCA.

The 2007 gives rise to compulsory registation and supervision for compliance for all firms in the regulated sector regardless of membership of professional associations.

The 2007 regulations also give rise to the “risk based” approach under which firms assess their risks according to a number of criteria and operate their polices and procedures according to that risk assessed and then demonstarte that to their supervisor.