The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (‘MLR 2017’).
MLR 2017 is the current statutory regime put in place to help fight money-laundering in the UK and applies to all FCA authorised institutions (except mortgage brokers, general insurers and general insurance brokers):
- building societies;
- credit unions;
- investment managers;
- e-money institutions;
- consumer credit firms offering lending services;
- financial advisors;
- investment firms;
- asset managers; and
- safety deposit services providers.
In addition, as of 10 January 2020 cryptoasset exchanges now fall within the ambit of MLR 2017.
Along with being the financial services sector’s MLR 2017 supervisor the FCA is specifically empowered by s168 of the Financial Services & Markets Act 2000 to investigate criminal breaches of MLR 2017. The regulatory requirements of MLR 2017 have been summarised by the FCA ‘…apply[ing] risk-based customer due diligence measures and [taking] other steps to prevent…services from being used for money laundering or terrorist financing.’
The FCA also expect regulated firms to have internal controls which:
- effectively monitor and manage compliance with anti-money-laundering (AML) policies and procedures; and
- are appropriate to its size, the products it offers, the parts of the world where it does business and types of customers its services.
Part of that effective monitoring is a requirement to designate a director or senior manager with overall responsibility for AML systems and controls and appoint a Money Laundering Reporting Officer (MLRO) whose primary focus will be AML activity and compliance with AML obligations, including but not limited an up to date risk assessment of the business.
Richardson Lissack has substantial experience of advising corporates and individuals on ongoing MLR 2017 compliance. We strive for excellence and can provide our clients with access to a team of diligent and experienced lawyers. The team can call upon past experience advising on regulatory & criminal investigations into breach of MLR 2017 in the enforcement division at the FCA from its ranks.
Our lawyers are available 24/7 to assist you and provide legal advice. Contact London 020 3753 5352 or Manchester 0161 834 7284. Alternatively you can email firstname.lastname@example.org