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Anti-money laundering amendments

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The Money Laundering and Terrorist Financing (Amendment) (EU Exit) Regulations, SI 2020/991, amend the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations, SI 2017/692, to implement amendments made by Directive 2018/843/EU to Directive 2015/849/EU (the fourth anti-money laundering directive). Those amendments are designed to prevent the use of the financial system for money laundering or terrorist financing purposes.

The main changes extend the scope of the register of trusts to cover UK and some non-UK express trusts (subject to certain exemptions) under new reg 45ZA, meaning that those trusts will be required to collect relevant information on beneficial ownership and register by 10 March 2022. The regulations also provide for certain information on the register to be accessible to certain persons with a legitimate interest, under new reg 45ZB, with effect from the same date. The process for how third-party requests will be dealt with will be set out by HMRC in future guidance.

The regulations also deal with the reporting of discrepancies in beneficial ownership information (from 10 March 2022), customer due diligence on publicly listed companies, the use of confidential information, registration deadlines for some firms and directions to cryptoasset businesses.

Other than the dates mentioned above, the regulations generally come into force on 6 October 2020.

Issue: 1501
Categories: News