On 10 January 2020 the Money Laundering and Terrorist Financing (Amendment) Regulations 2019 came into force. This statutory instrument updates the UK’s existing anti-money laundering legislation to take into account the EU 5th Money Laundering Directive.
The 2019 Regulations amend:
- The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs)
- The Terrorism Act 2000
- The Proceeds of Crime Act 2002
- The Companies Act 2006
What are the main changes?
One of updates the Fifth Directive brings additional businesses into the scope of the anti-money laundering regulatory framework. In particular the duty to carry out CDD.
These include previously excluded entities such as crypto wallets & exchanges, letting agents, art dealers and tax advisers. In the UK, there are over 100,000 businesses now within the scope of the Monel Laundering Regulations.
The 2019 regulations introduce an explicit CDD requirement for businesses to take reasonable measures to understand the ownership and control structure of their customers. Organisations must also take reasonable measures to verify the identity of senior managing officials when the beneficial owner of a body corporate cannot be identified.
As experts in KYC and customer onboarding, HooYu is trusted by a wide range of organisations who need to comply with KYC compliance to both conduct ID verification for CDD and enhanced due diligence investigations.
To help organisations comply with the updated regulations HooYu has put together a free compliance guide HERE
