Member States have until 15 December 2007 to implement the Third Money Laundering Directive (TMLD). In July 2006 the Government published Implementing the Third Money Laundering Directive: a consultation document. In January 2007 the Government published and consulted on draft Money Laundering Regulations 2007. In July 2007 the Government published:

  • The Money Laundering Regulations 2007.
  • A final Regulatory Impact Assessment for the Money Laundering Regulations 2007.
  • A summary of consultation responses to the draft Money Laundering Regulations 2007.

Regulation 17 of the Money Laundering Regulations 2007 prescribes the extent to which institutions can rely upon third parties to undertake due diligence on their behalf. However, this regulation contains an additional (and super-equivalent to the TMLD) requirement, namely the third party needs to consent to being relied upon.

Regulation 17(1) states:

A relevant person may rely on a person who falls within paragraph (2) (or who the relevant person has reasonable grounds to believe falls within paragraph (2)) to apply any customer due diligence measures provided that:-

  • the other person consents to be relied on; and
  • notwithstanding the other relevant person's reliance on the other person, the relevant person remains liable for any failure to apply such measures.

The rationale for this additional provision was not discussed in the summary of consultation responses to the draft Money Laundering Regulations 2007.

View HM Treasury Money Laundering Regulations 2007, 25 July 2007