The Joint Money Laundering Steering Group has published and opened up for consultation its proposed revisions to Parts II and III of its Guidance on the prevention of money laundering and the financing of terrorism for the UK financial services industry. This follows on from the recent consultation on Part I, which closed on April 28, 2017. The proposed revisions will align the JMLSG Guidance with the proposed Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, on which the Government recently consulted. The draft Regulations are intended to implement into UK laws the EU Fourth Money Laundering Directive and are due to take effect by June 26, 2017 at the same time as 4MLD.
The proposed revisions include changes to Guidance on the risk-based approach for different sectors of the financial services industry, customer due diligence, enhanced due diligence, compliance with the UK financial sanctions regime, reporting matches and possible breaches.
The proposed revisions are intended to be consistent with the proposed Guidelines on Risk Factors to be issued by the European Supervisory Authorities, which set out factors for financial institutions to consider when assessing money laundering and counter terrorist financing risks associated with individual business relationships or occasional transactions and the extent to which a firm's customer due diligence can be adjusted based on the risk identified. The proposed revisions to the JMSLG's Guidance are based on the draft Guidelines published in October 2015 with some anticipation of possible changes. The consultation closes on May 26, 2017.
View the proposed revisions to Parts II and III of the JMLSG Guidance.
View the proposed revisions to Part I of the JMLSG Guidance.
View the Government's consultation on transposing 4MLD and the draft Regulations.
View the proposed ESA Guidelines on Risk Factors.
