European Banking Authority
MLD4 - EBA publishes final report on guidelines on role of AML/CFT compliance officers - 14 June 2022
The European Banking Authority (EBA) has published a final report on guidelines specifying the role and responsibilities of the anti-money laundering and countering the financing of terrorism (AML/CFT) compliance officer and of the management body of credit or financial institutions, under Article 8 and Chapter VI of the Fourth Money Laundering Directive ((EU) 2015/849) (MLD4). The EBA consulted on the guidelines in July 2021.
The EBA is proceeding with the guidelines as consulted on, with several minor changes.
The guidelines will be translated into the official EU languages and published on the EBA website. The deadline for national competent authorities to report whether they comply with the guidelines will be six months after the publication of the translations. The guidelines will apply from 1 December 2022.
EBA Final Report: Guidelines on policies and procedures in relation to compliance management and the role and responsibilities of the AML/CFT Compliance Officer under Article 8 and Chapter VI of Directive (EU) 2015/849
The Economic Crime (Transparency and Enforcement) Act 2022 (Commencement No. 2 and Saving Provision) Regulations 2022 - 10 June 2022
The Economic Crime (Transparency and Enforcement) Act 2022 (Commencement No. 2 and Saving Provision) Regulations 2022 (SI 2022/638) (the Regulations) have been published. The Regulations were made on 9 June 2022 under section 69(2) and (5) of the Act of the Economic Crime (Transparency and Enforcement) Act 2022 (the Act). They bring into force on 15 June 2022 three provisions in Chapter 1, Part 3 of the Act, which relate to financial sanctions.
Section 54 of the Act amends section 146 of the Policing and Crime Act 2017 (the 2017 Act) so that civil monetary penalties can be applied to persons for breaches of financial sanctions with no requirement for HM Treasury to prove that the person had knowledge or reasonable cause to suspect their activity breached sanctions.
Section 55 of the Act amends section 147 of the 2017 Act to remove the requirement for a review of a decision by HM Treasury to impose a monetary penalty to be carried out by the Minister personally.
Section 56 amends section 149 of the 2017 Act to allow HM Treasury to publish notices detailing violations by persons of financial sanctions in cases where HM Treasury has decided not to impose a penalty.
Regulation 3 is a saving provision that relates to the amendments to section 146 of the 2017 Act. The new law will not apply to breaches of financial sanctions that took place before the coming into force of section 54 of the Act.
The Economic Crime (Transparency and Enforcement) Act 2022 (Commencement No. 2 and Saving Provision) Regulations 2022 (SI 2022/638)
Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 Statutory Instrument 2022 - HM Treasury publishes consultation response - 15 June 2022
HM Treasury has published a response to the July 2021 consultation on the government’s proposed approach to amending the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs). The government conducted a consultation between 22 July and 14 October 2021, inviting views and evidence on the steps the government proposed to take to amend the MLRs. The consultation response sets out the findings and the decisions the government has taken as a result. Many of these changes will be implemented through the Money Laundering and Terrorist Financing (Amendment) (No.2) Regulations 2022 (the Statutory Instrument).
Alongside the consultation for the Statutory Instrument, HM Treasury also published a call for evidence to inform a broader review of the UK’s AML/CTF regulatory and supervisory regimes, which will be published in June 2022.
The government is proceeding with the measures largely as consulted on, albeit with a few amendments, including:
- removing account information service providers (AISPs) from the scope of the regulated sector (but not payment initiation service providers (PISPs)), noting the potential higher risk posed by these latter providers, relative to AISPs;
- not removing bill payment service providers (BPSPs) and telecoms, digital and IT payment service providers (TDITPSPs) from the scope of the MLRs at this time; and
- not introducing a measure clarifying the range of activities considered to make a person a credit and financial institution for the purposes of regulation 10. HM Treasury explains that this work will require longer-term discussions with the industry to ensure that any change does not have unintended consequences.
The EU 5th Anti Money Laundering Directive (5MLD) required the UK to build a centralised automated mechanism which would help law enforcement and anti-money laundering supervisors access information on the identity of holders and beneficial owners of bank and payment accounts and safe-deposit boxes. The government has concluded that it should not build a system fulfilling this purpose, and the Statutory Instrument will remove the redundant obligations on the private sector under Part 5A of the MLRs.
The Statutory Instrument will also require proposed acquirers of cryptoasset firms to notify the FCA ahead of such acquisitions, allowing the FCA to undertake a ‘fit and proper’ assessment of the acquirer, providing the FCA with powers to object to any such acquisition before it takes place and cancel registration of the firm being acquired. The measure will also capture change in control offences under the MLRs in the new schedule 6B.
It will also allow the FCA and HMRC the discretion to publish information about decisions not to register an applicant for MLRs registration, aligning the treatment of notices of refusal with powers to publish notices for the cancellation and suspension of registrations. The measure will also allow the FCA to publish notices where it has objected to the acquisition of an already registered cryptoasset firm.
The changes have now been made through the Statutory Instrument. Many of the measures will come into force on 1 September 2022, subject to parliamentary approval.
HM Treasury Consultation: Amendments to the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 Statutory Instrument 2022: Response
The Money Laundering and Terrorist Financing (Amendment) (No. 2) Regulations 2022 - Draft statutory instrument and explanatory memorandum published - 15 June 2022
The Money Laundering and Terrorist Financing (Amendment) (No. 2) Regulations 2022 (the draft Regulations) have been laid before the Parliament and published, together with an explanatory memorandum. The Regulations follow the government’s response to HM Treasury’s July 2021 consultation on the government’s proposed approach to amending the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs).
The draft Regulations make time-sensitive updates to MLRs, which are being made to ensure that the UK continues to meet international standards on anti-money laundering and counter-terrorist financing (AML/CFT), whilst also strengthening and clarifying how the UK’s AML regime operates, following feedback from industry and supervisors.
Draft statutory instrument: The Money Laundering and Terrorist Financing (Amendment) (No. 2) Regulations 2022
Draft explanatory memorandum