The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017
The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017) (SI 2017/692) have been published and come into force today transposing the Fourth Money Laundering Directive ((EU) 2015/849).
The MLR 2017 have caused a shift in the rules from a prescriptive to a more risk-based approach and introduced a whole series of internal controls and procedures, including relating to customer due diligence, record keeping and imposes a number of obligations on senior management and employers.
A new criminal offence has also been created under the MLR 2017. Any individual who recklessly makes a statement which is false or misleading, in the context of a money laundering investigation commits an offence. This is punishable by a fine and/or up to 2 years' imprisonment.
We will be advising further on the MLR 2017 in due course.