The Money Laundering and Terrorist Financing (Amendment) (EU Exit) Regulations 2020 implement changes to the existing Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.
Key implementation dates
- Parts 1 to 3 came into force on 6th October 2020 except as specified in paragraphs (3) and (4).
- Regulation 7(2)(a) (substitution of paragraph (3) of regulation 45: register of beneficial ownership information) comes into force on 06 April 2021.
- Regulation 5 (substitution of regulation 30A: reporting discrepancies: trusts) and regulation 7(4) (insertion of new regulation 45ZB: access to information on the register) come into force on 10 March 2022
- Part 4 comes into force on 31 December 2020
- Regulation 45ZA widens the scope of trusts required to register (including specified non-UK trusts)
- Schedule 3A lists the types of trusts that are exempt from the requirement to register
- Businesses regulated for AML/CTF (relevant persons) are required to register specified non-UK trusts where there is a “business relationship” (where the duration of contact is established for at least 12 months)
- Access to the register will be granted to a third party where there is controlling interest in a non-EEA legal entity
- Discrepancies need to be reported only when establishing a new business relationship
- It is permissible to outsource discrepancy reporting duties where CDD is outsourced
Enhanced customer due diligence
- Requirement to consider life insurance policies for EDD
- The level of assurance should be to a degree that is necessary for effectively managing and mitigating any risks of money laundering and terrorist financing (as opposed to an appropriate level) when using an electronic identification process