Never-ending story

Enter the UK Money Laundering Regulations 2003…

Timon Molloy, Editor

First it was to be 15 June 2003, the date set for implementation under EU law, then the summer recess intervened and mid-September, soon after Parliament reassembled, was posited. That deadline passed and…nothing, until 23 October, when, in answer to a written question, Ruth Kelly, Financial Secretary to the Treasury, stated, “I propose shortly to lay before the House the new Money Laundering Regulations [2003], and amending orders to the Proceeds of Crime Act 2002 and Terrorism Act 2000 .” However, it was not to be and on 30 October, HM Treasury carried an announcement on its website that the new Regulations were to be delayed again as they were “undergoing further government scrutiny”. Finally, on 28 November they were laid and will come into effect on 1 March 2004. At the same time the relevant amendments to Schedule 9 of the Proceeds of Crime Act 2002 and the Terrorism Act 2000 were laid that will extend the reporting provisions to lawyers who engage in financial or real property transactions, auditors, external accountants, tax advisors, insolvency practitioners, company formation agents, trust service providers, casinos, estate agents and dealers in high-value goods (when cash payments, individual or linked, of €15,000 or more are involved). They now have three months in which to appoint their MLROs; institute customer identification and record-keeping procedures (for ID documentation and transactions), and systems and controls to detect and prevent money laundering and facilitate reporting of suspicions; and to establish a training programme for staff. At time of writing, HM Treasury would not confirm whether there would be any amendments to the draft ML Regulations (www.hm-treasury.gov.uk/media//C87D7/monlaunregs_draftsi03.pdf). Copies of the final Regulations are expected to be available from the middle of December.