Money Laundering Regulations – Update

On 14 December 2023, statutory instrument 2023 No. 1371 (SI 2023/1371) known as the Money Laundering and Terrorist Financing (Amendment) Regulations 2023 (the SI) – was released, along with an explanatory memorandum.

The SI modifies the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (the MLRs) to clarify distinctions between domestic and non-domestic politically exposed persons (PEPs).

It stipulates that, under the MLRs, domestic PEPs are deemed to present a lower risk of money laundering and terrorist financing compared to non-domestic PEPs. Consequently, regulated firms should apply less stringent enhanced due diligence measures to non-domestic PEPs, unless other unrelated risk factors are present. This clarification aligns with existing guidance.

The SI came into effect on 10 January 2024

What does this mean for notaries?

Notaries should consider amending their policies and procedures to make it clear that domestic PEPs should normally be subject to a lesser standard of Enhanced Due Diligence.