The UK’s Treasury has published a “Consultation on the transposition of the Fourth Money Laundering Directive“. The Consultation also describes HM Treasury’s proposed approach to the implementation of articles 17 et al of the European Information Accompanying Transfer of Funds Regulation.
The Consultation mentions, but doesn’t ask any questions about, the European Commission’s proposals to amend the Fourth Anti-money Laundering Directive, which are described as “subject to negotiation and agreement between the 28 Member States and [subject to possible] change in the coming months“. As a result, the Consultation assumes that Directive transposition must be finished by, and compliance must begin on, 26 June 2017 – the unamended Directive deadline, rather than January 2017, the deadline apparently agreed between the European Union’s Member States and the Commission after the November 2015 Paris Attacks. The Consultation is also silent about the proposed extension of the Directive to crypto-currency exchanges and wallet providers.
The Consultation expressly anticipates gold-plating “where there is good evidence that a material [money laundering / terrorist financing] risk exists that must be addressed“.
The Government is proposing to create the “Money Laundering and Transfer of Funds (Information on the Payer) Regulations 2017” to transpose the Directive and the relevant parts of the Regulation into UK law. (If made, as proposed), these Regulations will revoke both the Money Laundering Regulations 2007 and the Transfer of Funds Regulations 2007.
The Consultation period closes on 10 November 2016.
We have published separate posts about HM Treasury’s response to the Commission’s proposal to amend the Fourth Anti-Money Laundering Directive (here); the European Banking Authority’s criticism of the Commission’s proposals (here); and other related issues (here).