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
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