Firms prepare for tighter Money Laundering Regulations

The latest draft Money Laundering Regulations 2017 have been released three months before they come into force. Ian Mason warns that they impose more detailed requirements on firms as well as further criminal offences – which the regulator has indicated that it is willing to enforce.

Ian Mason is legal director with DLA Piper in London. His previous experience includes acting as head of department, enforcement division, at the Financial Services Authority. Contact him on ian.mason@dlapiper.com.

On 15 March 2017, HM Treasury published the latest draft Money Laundering Regulations 2017 (MLRs 2017), including feedback and further consultation on the Fourth Anti-Money Laundering Directive (MLD 4). The MLRs 2017 build on the existing Money Laundering Regulations 2007 (MLRs 2007), including changes to scope, due diligence and reliance on third parties, beneficial ownership, as well as to the supervision bodies and enforcement powers. The MLRs 2017 will come into force from 26 June 2017. (References below to the MLRs 2017 are to the draft regulations published on 15 March 2017).