All businesses that fall within the AML/CTF regimes in the UK and Ireland must be supervised by a supervisory authority to reduce the threat of financial crime. CIMA is such a designated supervisory authority.
Amendments to the UK’s Money Laundering Regulations
Please be aware that in the UK the Money Laundering and Terrorist Financing (Amendment) Regulations 2019 come into effect on 10th January 2020. These regulations implement the changes required by the 5th Money Laundering Directive (5MLD). Members must continue to meet the requirements of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations as well as the additional requirements of the 2019 amendments, the main changes being that relevant persons must:
- take reasonable measures to understand the ownership and control structure of their customers. If the beneficial owner of a body corporate cannot be identified reasonable measures must be taken to verify the identity of senior managing officials.
- check that all persons with significant control have been filed on the Companies House register and report any discrepancies that are identified.
- confirm that electronic verification is a reliable source, provides sufficient assurance and is free from fraud.
Additionally the definition of tax advisor has been extended to those offering indirect tax advice.
Sector specific guidance will be issued soon to assist members in implementing the new requirements. CIMA will also take into consideration the short lead-in time that businesses have had to prepare for the updated regulations when assessing current member compliance with those regulations.
The table below gives a brief overview of the regulatory frameworks governing the AML/CTF regimes in various countries.