Money Laundering & Terrorist Financing (Amendment) Regulations 2019

January 2020

The Business Anti-Money Laundering Policy (AML policy) is a general policy designed for a low risk business in order to make staff aware of money laundering, prevent it taking place and sets out what to do should any money laundering activity be suspected. This AML policy has been updated in light of the Money Laundering and Terrorist Financing (Amendment) Regulations 2019 (‘the 2019 Regulations’) implementing the European Union Fifth Money Laundering Directive which came into force on 10th January 2020.

A low risk business means one that is not within a regulated sector. However, as a matter of good practice the AML Policy has been updated to reflect important new aspects of the 2019 Regulations.

The 2019 Regulations amend existing money laundering regulations in a number of ways including, widened the scope of “obliged entities” subject to them, ensuring that the ownership and control of any company, legal arrangement or trust structure of a customer is identified and verified and also prescribing mandatory enhanced due diligence measures when a transaction appears to be ‘high-risk’. Accordingly, the AML policy, in the Business Folder, has been updated specifically in relation to customer identification and due diligence where enhanced due diligence may be required. A data protection provision has also been added to ensure that the collection of any relevant data is “processed” in line with the Data Protection Act 2018.

Note that this template is not suitable for estate agents and letting agents, who should use the AML policy templates specifically created for them in the Property portfolio of documents. Failure to comply with AML legislation can result in civil penalties or criminal prosecution.

The contents of this Newsletter are for reference purposes only and do not constitute legal advice. Independent legal advice should be sought in relation to any specific legal matter.

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