Money Laundering Regulations: What You Need to Know
The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLR 2017) came into effect on 26 June 2017, replacing the 2007 regulations. These rules apply to a wide range of professionals and businesses, including:
- Accountancy service providers
- Trust or company service providers
- Tax advisers, auditors, and insolvency practitioners
- Dealers in goods accepting or making cash payments over €10,000 (previously €15,000)
There’s an exemption for businesses carrying out financial activity occasionally, provided their annual turnover is under £100,000 (up from £64,000) and other conditions are met.
Whole Firm Risk Assessment
You must carry out and document a firm-wide risk assessment to identify and manage the risks of money laundering and terrorist financing. This assessment should reflect the size and nature of your firm and consider:
- Your clients
- Geographic areas of operation
- Services and products offered
- Types of transactions
- Delivery channels
Your risk assessment must also reflect guidance from your supervisory authority. AIA, in collaboration with other accountancy bodies, has published guidance on identifying high-risk scenarios.
Firms must submit their risk assessments annually as part of the member firm return and provide them on request.
