The Money Laundering Regulations 2007

Made: 24th July 2007

Laid before Parliament: 25th July 2007

Coming into force: 15th December 2007

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PART 1 — GENERAL

Citation, commencement etc.

1

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Interpretation

2

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Application of the Regulations

3

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Exclusions

4

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PART 2 — CUSTOMER DUE DILIGENCE

Meaning of customer due diligence measures

5

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Meaning of beneficial owner

6

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Application of customer due diligence measures

7

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Ongoing monitoring

8

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Timing of verification

9

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Casinos

10

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Requirement to cease transactions etc.

11

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Exception for trustees of debt issues

12

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Simplified due diligence

13

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Enhanced customer due diligence and ongoing monitoring

14

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Branches and subsidiaries

15

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Shell banks, anonymous accounts etc.

16

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Reliance

17

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Directions where Financial Action Task Force applies counter-measures

18

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PART 3 — RECORD-KEEPING, PROCEDURES AND TRAINING

Record-keeping

19

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Policies and procedures

20

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Training

21

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PART 4 — SUPERVISION AND REGISTRATION

Interpretation

Interpretation

22

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Supervision

Supervisory authorities

23

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Duties of supervisory authorities

24

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Registration of high value dealers, money service businesses and trust or company service providers

Duty to maintain registers

25

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Requirement to be registered

26

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Applications for registration in a register maintained under regulation 25

27

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Fit and proper test

28

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Determination of applications under regulation 27

29

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Cancellation of registration in a register maintained under regulation 25

30

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Requirement to inform the Authority

Requirement on authorised person to inform the Authority

31

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Registration of Annex I financial institutions, estate agents etc.

Power to maintain registers

32

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Requirement to be registered

33

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Applications for and cancellation of registration in a register maintained under regulation 32

34

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Financial provisions

Costs of supervision

35

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PART 5 — ENFORCEMENT

Powers of designated authorities

Interpretation

36

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Power to require information from, and attendance of, relevant and connected persons

37

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Entry, inspection without a warrant etc.

38

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Entry to premises under warrant

39

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Failure to comply with information requirement

40

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Powers of relevant officers

41

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Civil penalties, review and appeals

Power to impose civil penalties

42

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Review procedure

43

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Appeals

44

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Criminal offences

Offences

45

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Prosecution of offences

46

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Offences by bodies corporate etc.

47

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PART 6 — MISCELLANEOUS

Recovery of charges and penalties through the court

48

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Obligations on public authorities

49

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Transitional provisions: requirement to be registered

50

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Minor and consequential amendments

51

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SCHEDULE 1 — Activities listed in points 2 to 12, 14 and 15 of Annex 1 to the capital requirements directive

2

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3

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4

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5

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6

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7

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8

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9

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10

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11

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12

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14

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SCHEDULE 2 — FINANCIAL ACTIVITY, SIMPLIFIED DUE DILIGENCE AND POLITICALLY EXPOSED PERSONS

Financial activity on an occasional or very limited basis

1

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Simplified due diligence

2

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3

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Politically exposed persons

4

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SCHEDULENonBreakingSpace3 — Professional Bodies

PART 1

1

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2

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3

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4

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5

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6

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7

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8

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9

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10

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11

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PART 2

12

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13

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14

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15

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16

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17

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18

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19

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20

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21

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SCHEDULE 4 — CONNECTED PERSONS

Corporate bodies

1

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Partnerships

2

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Unincorporated associations

3

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Individuals

4

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SCHEDULE 5 — MODIFICATIONS IN RELATION TO APPEALS

PART 1 — Primary legislation

The Value Added Tax Act 1994 (c. 23)

1

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The Financial Services and Markets Act 2000 (c. 8)

2

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PART 2 — Secondary legislation

The Financial Services and Markets Tribunal Rules 2001

3

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SCHEDULE 6 — MINOR AND CONSEQUENTIAL AMENDMENTS

PART 1 — Primary legislation

The Value Added Tax Act 1994 (c. 23)

1

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The Northern Ireland Act 1998 (c. 47)

2

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The Criminal Justice and Police Act 2001 (c. 16)

3

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PART 2 — Secondary legislation

The Independent Qualified Conveyancers (Scotland) Regulations 1997

4

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The Executry Practitioners (Scotland) Regulations 1997

5

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The Cross-Border Credit Transfers Regulations 1999

6

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The Terrorism Act 2000 (Crown Servants and Regulators) Regulations 2001

7

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The Representation of the People (England and Wales) Regulations 2001

8

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The Representation of the People (Scotland) Regulations 2001

9

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The Financial Services and Markets Act 2000 (Regulated Activities) Order 2001

10

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The Proceeds of Crime Act 2002 (Failure to Disclose Money Laundering: Specified Training) Order 2003

11

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The Public Contracts (Scotland) Regulations 2006

12

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The Utilities Contracts (Scotland) Regulations 2006

13

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The Public Contracts Regulations 2006

14

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The Utilities Contracts Regulations 2006

15

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Signed

Signatory text

Alan Campbell — Frank Roy — Two Lords Commissioners of — 2007-07-24

Explanatory note

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Footnotes

[^f00001]: S.I. 1992/1711.

[^f00002]: 1972 c. 68; section 2(2) was amended by section 27 of the Legislative and Regulatory Reform Act 2006 (c.51). By virtue of the amendment of section 1(2) made by section 1 of the European Economic Area Act 1993 (c.51) regulations may be made under section 2(2) to implement obligations of the United Kingdom created by or arising under the Agreement on the European Economic Area signed at Oporto on 2nd May 1992 (Cm 2073, OJ No L 1, 3.11.1994, p. 3) and the Protocol adjusting that Agreement signed at Brussels on 17th March 1993 (Cm 2183, OJ No L 1, 3.1.1994, p.572). For the decision of the EEA Joint Committee in relation to Directive 2005/60/EC, see Decision No 87/2006 of 7th July 2006 amending Annex IX (Financial Services) to the EEA Agreement (OJ No L 289 19.10.2006, p. 23).

[^f00003]: See the definition of “prescribed”.

[^f00004]: 2000 c. 8.

[^f00005]: S.I. 2003/3075.

[^f00006]: See section 31(2) of the 2000 Act.

[^f00007]: OJ No L 177, 30.6.2006, p. 1.

[^f00008]: OJ No L 275, 27.10.2000, p. 39.

[^f00009]: OJ No L 214, 4.8.2006, p. 29.

[^f00010]: OJ No L 345, 19.12.2002, p.1.

[^f00011]: 1985 c. 72. Section 69(3) was amended by the Local Government etc. (Scotland) Act 1994 (c. 39), Schedule 13, paragraph 44.

[^f00012]: OJ No L 145, 30.4.2004, p. 1, amended by Directive 2006/31/EC (OJ No L 114, 27.4.06, p. 60).

[^f00013]: 2002 c. 29.

[^f00014]: OJ No L 309, 25.11.2005, p. 15.

[^f00015]: 2002 c. 29. Part 7 was amended by the Serious Organised Crime and Police Act 2005 (c.15) sections 102 to 106, Schedule 4, paragraphs 168, 173 and 174 and Schedule 17, Part 2, and S.I. 2006/308.

[^f00016]: 2000 c. 11. Part 3 was amended by the Anti-Terrorism, Crime and Security Act 2001 (c.24) Schedule 2, Part 3, paragraph 5 and the Serious Organised Crime and Police Act 2005, Schedule 4, paragraphs 125 to 129.

[^f00017]: OJ No L 96, 12.4.2003, P. 20.

[^f00018]: OJ No L 345, 31.12.2003, P. 69.

[^f00019]: OJ No L 390, 31.12.2004, P. 43.

[^f00020]: 2001 c. 24.

[^f00021]: S.I. 2006/2657.

[^f00022]: S.I. 2006/2952.

[^f00023]: See Article 4(1) of the directive.

[^f00024]: OJ No L 9, 15.1.2003, p. 3.

[^f00025]: S.I. 2001/544. There are amendments to this Order not relevant to these Regulations.

[^f00026]: 1968 c. 13.

[^f00027]: 2006 c. 46.

[^f00028]: 1989 c. 40.

[^f00029]: 1990 No.593 (N.I. 5).

[^f00030]: 1986 c. 45; s388 was amended by section 4 of the Insolvency Act 2000 (c.45), section 11 of the Bankruptcy (Scotland) Act 1993 (c.6), and S.I. 1994/2421, 2002/1240 and 2002/2708.