New AML regulations have come into force
The 4th Money Laundering Directive, formally known as The Money Laundering, Terrorist Financing and Transfer of Funds Regulations (MLR) 2017 came into force on 26 June, replacing the 2007 version. The anti-money laundering (AML) directive had been previously drafted in 2016 between September and November and between March and April earlier this year.
The regulations are designed to reduce the social and economic impact of organised financial crime and prevent the transfer of money used to fund global and domestic terrorist organisations in the UK. Although no significant changes have been made to the previous MLR 2007 however, the new rules have been designed to ensure that companies know who they’re dealing with.
Amy Bell, Chairwoman of the Law Society’s money laundering task force said: “there are some considerable amendments and additions which will take firms some time to consider and implement”.
In addition to changing the way companies approach customer due diligence (CDD), the Money Laundering Regulations 2017 will also enable companies to develop new ways of preventing terrorist groups from exploiting new funding channels through e-money and prepaid cards, and improves the transparency of beneficial ownership of companies and charities.
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