Legalize / United Kingdom / Statutory-Instrument

The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017

Type Statutory-Instrument

Publication 2026-06-30

Last updated 2026-07-03

State In force

Department Statute Law Database

Source legislation.gov.uk

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(1) A relevant person must have in place appropriate risk-management systems and procedures to determine whether a customer or the beneficial owner of a customer is—

(a) a politically exposed person (a “PEP”); or

(b) a family member or a known close associate of a PEP,

and to manage the enhanced risks arising from the relevant person's business relationship or transactions with such a customer.

(2) In determining what risk-management systems and procedures are appropriate under paragraph (1), the relevant person must take account of—

(a) the risk assessment it carried out under regulation 18(1);

(b) the level of risk of money laundering and terrorist financing inherent in its business;

(c) the extent to which that risk would be increased by its business relationship or transactions with a PEP, or a family member or known close associate of a PEP, and

(d) any relevant information made available to the relevant person under regulations 17(9) and 47.

(3) If a relevant person has determined that a customer or a potential customer is a PEP, or a family member or known close associate of a PEP, the relevant person must assess—

(a) the level of risk associated with that customer, and

(b) the extent of the enhanced customer due diligence measures to be applied in relation to that customer.

(3A) For the purpose of the relevant person’s assessment under paragraph (3), where a customer or potential customer is a domestic PEP, or a family member or a known close associate of a domestic PEP—

(a) the starting point for the assessment is that the customer or potential customer presents a lower level of risk than a non-domestic PEP, and

(b) if no enhanced risk factors are present, the extent of enhanced customer due diligence measures to be applied in relation to that customer or potential customer is less than the extent to be applied in the case of a non-domestic PEP.

(4) In assessing the extent of the enhanced customer due diligence measures to be taken in relation to any particular person (which may differ from case to case), a relevant person—

(a) must take account of any relevant information made available to the relevant person under regulations 17(9) and 47; and

(b) may take into account any guidance which has been—

(i) issued by the FCA; or

(ii) issued by any other supervisory authority or appropriate body and approved by the Treasury.

(5) A relevant person who proposes to have, or to continue, a business relationship with a PEP, or a family member or a known close associate of a PEP, must, in addition to the measures required by regulation 33—

(a) have approval from senior management for establishing or continuing the business relationship with that person;

(b) take adequate measures to establish the source of wealth and source of funds which are involved in the proposed business relationship or transactions with that person; and

(c) where the business relationship is entered into, conduct enhanced ongoing monitoring of the business relationship with that person.

(6) A relevant person which is providing a customer with a contract of long-term insurance (an “insurance policy”) must take reasonable measures to determine whether one or more of the beneficiaries of the insurance policy or the beneficial owner of a beneficiary of such an insurance policy are—

(a) PEPs, or

(b) family members or known close associates of PEPs.

(7) The measures required under paragraph (6) must be taken before—

(a) any payment is made under the insurance policy, or

(b) the benefit of the insurance policy is assigned in whole or in part to another person.

(8) A relevant person must, in addition to the measures required by regulation 33, ensure that—

(a) its senior management is informed before it pays out any sums under an insurance policy the beneficiary of which is a PEP or a person who comes within paragraph (6)(b) in relation to a PEP, and

(b) its entire business relationship with the holder of the insurance policy (“the policy holder”) is scrutinised on an ongoing basis in accordance with enhanced procedures, whether or not the policy holder is a PEP or a family member or known close associate of a PEP.

(9) Where a person who was a PEP is no longer entrusted with a prominent public function, a relevant person must continue to apply the requirements in paragraphs (5) and (8) in relation to that person—

(a) for a period of at least 12 months after the date on which that person ceased to be entrusted with that public function; or

(b) for such longer period as the relevant person considers appropriate to address risks of money laundering or terrorist financing in relation to that person.

(10) Paragraph (9) does not apply in relation to a person who—

(a) was not a politically exposed person within the meaning of regulation 14(5) of the Money Laundering Regulations 2007 , when those Regulations were in force; and

(b) ceased to be entrusted with a prominent public function before the date on which these Regulations come into force.

(11) When a person who was a PEP is no longer entrusted with a prominent public function, the relevant person is no longer required to apply the requirements in paragraphs (5) and (8) in relation to a family member or known close associate of that PEP (whether or not the period referred to in paragraph (9) has expired).

(12) In this regulation—

(a) “politically exposed person” or “PEP” means an individual who is entrusted with prominent public functions, other than as a middle-ranking or more junior official;

(b) “family member” of a politically exposed person includes—

(i) a spouse or civil partner of the PEP;

(ii) children of the PEP and the spouses or civil partners of the PEP's children;

(iii) parents of the PEP;

(i) an individual known to have joint beneficial ownership of a legal entity or a legal arrangement or any other close business relations with a PEP;

(ii) an individual who has sole beneficial ownership of a legal entity or a legal arrangement which is known to have been set up for the benefit of a PEP;

(d) “domestic PEP” means a politically exposed person entrusted with prominent public functions by the United Kingdom;

(e) “non-domestic PEP” means a politically exposed person who is not a domestic PEP;

(f) “enhanced risk factors”, in relation to a customer or potential customer who is a domestic PEP or a family member or a known close associate of that domestic PEP, mean risk factors other than the customer’s or potential customer’s position as a domestic PEP or as a family member or a known close associate of that domestic PEP.

(13) For the purposes of paragraph (5), a reference to a business relationship with an individual includes a reference to a business relationship with a person of which the individual is a beneficial owner.

(14) For the purposes of paragraphs (9), (11) and (12), individuals entrusted with prominent public functions include—

(a) heads of state, heads of government, ministers and deputy or assistant ministers;

(b) members of parliament or of similar legislative bodies;

(d) members of supreme courts, of constitutional courts or of any judicial body the decisions of which are not subject to further appeal except in exceptional circumstances;

(e) members of courts of auditors or of the boards of central banks;

(f) ambassadors, charges d'affaires and high-ranking officers in the armed forces;

(g) members of the administrative, management or supervisory bodies of State-owned enterprises;

(h) directors, deputy directors and members of the board or equivalent function of an international organisation.

(15) For the purpose of deciding whether a person is a known close associate of a politically exposed person, a relevant person need only have regard to information which is in its possession, or to credible information which is publicly available.

Politically exposed persons: other duties

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(1) The duty under section 30(1) of the Bank of England and Financial Services Act 2016 (duty to ensure that regulations or orders implementing the fourth money laundering directive comply with paragraphs (a) to (d) of that subsection) does not apply if, and to the extent that, the duty is otherwise satisfied as a result of any provision contained in these Regulations, or any guidance issued by the FCA under these Regulations.

(2) The duty under section 333U(1) and (2) of FSMA (duty to issue guidance in connection with politically exposed persons) does not apply if, and to the extent that, the duty is otherwise satisfied as a result of guidance issued by the FCA under these Regulations.

CHAPTER 3 — Simplified customer due diligence

Application of simplified customer due diligence

37

(1) A relevant person may apply simplified customer due diligence measures in relation to a particular business relationship or transaction if it determines that the business relationship or transaction presents a low degree of risk of money laundering and terrorist financing, having taken into account—

(a) the risk assessment it carried out under regulation 18(1);

(b) relevant information made available to it under regulations 17(9) and 47; and

(2) Where a relevant person applies simplified customer due diligence measures, it must—

(a) continue to comply with the requirements in regulations 28 , 29 and 30A, but it may adjust the extent, timing or type of the measures it undertakes under regulations 28 and 29(11) to (13) to reflect its determination under paragraph (1); and

(b) carry out sufficient monitoring of any business relationships or transactions which are subject to those measures to enable it to detect any unusual or suspicious transactions.

(3) When assessing whether there is a low degree of risk of money laundering and terrorist financing in a particular situation, and the extent to which it is appropriate to apply simplified customer due diligence measures in that situation, the relevant person must take account of risk factors including, among other things—

(a) customer risk factors, including whether the customer—

(i) is a public administration, or a publicly owned enterprise;

(ii) is an individual resident in a geographical area of lower risk (see sub-paragraph (c));

(iii) is a credit institution or a financial institution which is—

(aa) subject to requirements in national legislation having an equivalent effect to those laid down in the fourth money laundering directive on an obliged entity (within the meaning of that directive); and

(bb) supervised for compliance with those requirements in a manner equivalent to section 2 of Chapter VI of the fourth money laundering directive;

(iv) is a company whose securities are listed on a regulated market, and the location of the regulated market;

(b) product, service, transaction or delivery channel risk factors, including whether the product or service is—

(i) a life insurance policy for which the premium is low;

(ii) an insurance policy for a pension scheme which does not provide for an early surrender option, and cannot be used as collateral;

(iii) a pension, superannuation or similar scheme which satisfies the following conditions—

(aa) the scheme provides retirement benefits to employees;

(bb) contributions to the scheme are made by way of deductions from wages; and

(cc) the scheme rules do not permit the assignment of a member's interest under the scheme;

(iv) a financial product or service that provides appropriately defined and limited services to certain types of customers to increase access for financial inclusion purposes in the United Kingdom;

(v) a product where the risks of money laundering and terrorist financing are managed by other factors such as purse limits or transparency of ownership;

(vi) a child trust fund within the meaning given by section 1(2) of the Child Trust Funds Act 2004 ;

(vii) a junior ISA within the meaning given by regulation 2B of the Individual Savings Account Regulations 1998 ;

(c) geographical risk factors, including whether the country where the customer is resident, established or registered or in which it operates is—

(i) the United Kingdom;

(ii) a third country which has effective systems to counter money laundering and terrorist financing;

(iii) a third country identified by credible sources as having a low level of corruption or other criminal activity, such as terrorism (within the meaning of section 1 of the Terrorism Act 2000 ), money laundering, and the production and supply of illicit drugs;

(iv) a third country which, on the basis of credible sources, such as evaluations, detailed assessment reports or published follow-up reports published by the Financial Action Task Force, the International Monetary Fund, the World Bank, the Organisation for Economic Co-operation and Development or other international bodies or non-governmental organisations—

(aa) has requirements to counter money laundering and terrorist financing that are consistent with the revised Recommendations published by the Financial Action Task Force in February 2012 and updated in October 2016; and

(bb) effectively implements those Recommendations.

(4) In making the assessment referred to in paragraph (3), relevant persons must bear in mind that the presence of one or more risk factors may not always indicate that there is a low risk of money laundering and terrorist financing in a particular situation.

(5) A relevant person may apply simplified customer due diligence measures where the customer is a person to whom paragraph (6) applies and the product is an account into which monies are pooled (the “pooled account”), provided that—

(a) the business relationship with the holder of the pooled account presents a low degree of risk of money laundering and terrorist financing; and

(b) information on the identity of the persons on whose behalf monies are held in the pooled account is available, on request to the relevant person where the pooled account is held.

(6) This paragraph applies to—

(a) a relevant person who is subject to these Regulations under regulation 8;

(b) a person who carries on business in a third country who is—

(i) subject to requirements in national legislation having an equivalent effect to those laid down in the fourth money laundering directive on an obliged entity (within the meaning of that directive); and

(ii) supervised for compliance with those requirements in a manner equivalent to section 2 of Chapter VI of the fourth money laundering directive.

(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8) A relevant person must not continue to apply simplified customer due diligence measures under paragraph (1)—

(a) if it doubts the veracity or accuracy of any documents or information previously obtained for the purposes of identification or verification;

(b) if its risk assessment changes and it no longer considers that there is a low degree of risk of money laundering and terrorist financing;

(d) if any of the conditions set out in regulation 33(1) apply.

Electronic money

38

(1) Subject to paragraph (3), a relevant person is not required to apply customer due diligence measures in relation to electronic money, and regulations 27, 28, 30 and 33 to 37 do not apply provided that—

(a) the maximum amount which can be stored electronically is £150;

(b) the payment instrument used in connection with the electronic money (“the relevant payment instrument”) is—

(i) not reloadable; or

(ii) is subject to a maximum limit on monthly payment transactions of £150 which can only be used in the United Kingdom;

(d) anonymous electronic money cannot be used to fund the relevant payment instrument.

(2) Paragraph (1) does not apply to any transaction which consists of the redemption in cash, or a cash withdrawal, of the monetary value of the electronic money, where—

(a) the amount redeemed exceeds £50; or

(b) in the case of remote payment transactions, the amount redeemed exceeds £50 per transaction.

(3) The issuer of the relevant payment instrument must carry out sufficient monitoring of its business relationship with the users of electronic money and of transactions made using the relevant payment instrument to enable it to detect any unusual or suspicious transactions.

(4) A relevant person is not prevented from applying simplified customer due diligence measures in relation to electronic money because the conditions set out in paragraph (1) are not satisfied, provided that such measures are permitted under regulation 37.

(4A) Credit institutions and financial institutions, acting as acquirers for payment using an anonymous prepaid card issued in a third country, shall only accept payment where—

(a) the anonymous prepaid card is subject to requirements in national legislation having an equivalent effect to those laid down in this regulation; and

(b) the anonymous prepaid card satisfies those requirements.

(5) For the purposes of this regulation—

(a) “acquirer” means a payment service provider contracting with a payee to accept and process card-based payment transactions, which result in a transfer of funds to the payee;

(b) “payment instrument” has the meaning given by regulation 2(1) of the Electronic Money Regulations 2011;

PART 4 — Reliance and Record-keeping

Reliance

39

(1) A relevant person may rely on a person who falls within paragraph (3) (“the third party”) to apply any of the customer due diligence measures required by regulation 28(2) to (6) and (10) , or to carry out any of the measures required by regulation 30A, but, notwithstanding the relevant person's reliance on the third party, the relevant person remains liable for any failure to apply such measures.

(2) When a relevant person relies on the third party to apply customer due diligence measures or carry out any of the measures required by regulation 30A under paragraph (1) it—

(a) must immediately obtain from the third party all the information needed to satisfy the requirements of regulation 28(2) to (6) and (10) and regulation 30A in relation to the customer, customer's beneficial owner, or any person acting on behalf of the customer;

(b) must enter into arrangements with the third party which—

(i) enable the relevant person to obtain from the third party immediately on request copies of any identification and verification data and any other relevant documentation on the identity of the customer, customer's beneficial owner, or any person acting on behalf of the customer;

(ii) require the third party to retain copies of the data and documents referred to in paragraph (i) for the period referred to in regulation 40.

(3) The persons within this paragraph are—

(a) another relevant person who is subject to these Regulations under regulation 8;

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(i) subject to requirements in relation to customer due diligence and record keeping which are equivalent to those laid down in the fourth money laundering directive; and

(ii) supervised for compliance with those requirements in a manner equivalent to section 2 of Chapter VI of the fourth money laundering directive;

(d) organisations whose members consist of persons within sub-paragraph (a)... or (c).

(4) A relevant person may not rely on a third party established in a FATF call for action country, and for these purposes “high-risk third country” has the meaning given in regulation 33(3).

(5) Paragraph (4) does not apply to a branch or majority owned subsidiary of an entity ... if all the following conditions are met—

(a) the entity is—

(i) a person who is subject to the requirements in these Regulations as a relevant person within the meaning of regulation 8 and who is supervised for compliance with them; or

(ii) subject to requirements in national legislation having an equivalent effect to those laid down in the fourth money laundering directive on an obliged entity (within the meaning of that directive) and supervised for compliance with those requirements in a manner equivalent to section 2 of Chapter VI of the fourth money laundering directive;

(b) the branch or subsidiary complies fully with procedures and policies established for the group under—

(i) regulation 20 of these Regulations, or

(ii) requirements in national legislation having an equivalent effect to those laid down Article 45 of the fourth money laundering directive.

(6) A relevant person is to be treated by a supervisory authority as having complied with the requirements of paragraph (2) if—

(a) the relevant person is relying on information provided by a third party which is a member of the same group as the relevant person;

(b) that group applies customer due diligence measures, rules on record keeping and programmes against money laundering and terrorist financing in accordance with these Regulations, the fourth money laundering directive or rules having equivalent effect; and

(i) an authority of an EEA state ... with responsibility for the functions provided for in the fourth money laundering directive; or

(ii) an equivalent authority of a third country.

(7) Nothing in this regulation prevents a relevant person applying customer due diligence measures , or carrying out any of the measures required by regulation 30A, by means of an agent or an outsourcing service provider provided that the arrangements between the relevant person and the agent or outsourcing service provider provide for the relevant person to remain liable for any failure to apply such measures.

(8) For the purposes of paragraph (7), an “outsourcing service provider” means a person who—

(a) performs a process, a service or an activity that would otherwise be undertaken by the relevant person, and

(b) is not an employee of the relevant person.

Record-keeping

40

(1) Subject to paragraph (5), a relevant person must keep the records specified in paragraph (2) for at least the period specified in paragraph (3).

(2) The records are—

(a) a copy of any documents and information obtained by the relevant person to satisfy the customer due diligence requirements in regulations 28, 29 and 33 to 37 and the requirements of regulation 30A , and of regulations 64C and 64G(1);

(b) sufficient supporting records (consisting of the original documents or copies) in respect of a transaction (whether or not the transaction is an occasional transaction) which is the subject of customer due diligence measures or ongoing monitoring to enable the transaction to be reconstructed.

(c) in the case of an inter-cryptoasset business transfer, in addition to the records referred to in sub-paragraphs (a) and (b), any documents and information received by an intermediary cryptoasset business and the cryptoasset business of a beneficiary by virtue of the obligations under regulations 64C(1), (2) and (7), or received by them pursuant to a request under regulation 64D(2)(a) or 64E(2)(a); and

(d) in the case of an unhosted wallet transfer, in addition to the records referred to in sub-paragraphs (a) and (b), any documents and information received by a cryptoasset business pursuant to a request under regulation 64G(1).

(3) Subject to paragraph (4), the period is five years beginning on the date on which the relevant person knows, or has reasonable grounds to believe—

(a) that the transaction is complete, for records relating to an occasional transaction; or

(b) that the business relationship has come to an end for records relating to—

(i) any transaction which occurs as part of a business relationship, or

(ii) customer due diligence measures taken in connection with that relationship.

(4) A relevant person is not required to keep the records referred to in paragraph (3)(b)(i) for more than 10 years.

(5) Once the period referred to in paragraph (3), or if applicable paragraph (4), has expired, the relevant person must delete any personal data obtained for the purposes of these Regulations unless—

(a) the relevant person is required to retain records containing personal data—

(i) by or under any enactment, or

(ii) for the purposes of any court proceedings;

(b) the data subject has given consent to the retention of that data; or

(c) the relevant person has reasonable grounds for believing that records containing the personal data need to be retained for the purpose of legal proceedings.

(6) A relevant person who is relied on by another person must keep the records specified in paragraph (2) for the period referred to in paragraph (3) or, if applicable, paragraph (4).

(7) A person referred to in regulation 39(3) (“A”) who is relied on by a relevant person (“B”) must, if requested by B within the period referred to in paragraph (3) or, if applicable, paragraph (4), immediately—

(a) make available to B any information about the customer, any person purporting to act on behalf of the customer and any beneficial owner of the customer, which A obtained when applying customer due diligence measures; and

(b) forward to B copies of any identification and verification data and other relevant documents on the identity of the customer, any person purporting to act on behalf of the customer and any beneficial owner of the customer, which A obtained when applying those measures.

(8) Paragraph (7) does not apply where a relevant person applies customer due diligence measures by means of an agent or an outsourcing service provider (within the meaning of regulation 39(8)).

(9) For the purposes of this regulation—

(a) B relies on A where B does so in accordance with regulation 39(1);

(b) “copy” means a copy of the original document which would be admissible as evidence of the original document in court proceedings;

(d) “personal data” has the same meaning as in Parts 5 to 7 of that Act (see section 3(2) and (14) of that Act).

(e) “beneficiary”, “cryptoasset business”, “inter-cryptoasset business transfer”, “intermediary cryptoasset business” and “unhosted wallet transfer” have the meanings given by regulation 64B.

Data Protection

41

(1) Any personal data obtained by relevant persons for the purposes of these Regulations may only be processed for the purposes of preventing money laundering, terrorist financing or proliferation financing.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) No other use may be made of personal data referred to in paragraph (1), unless—

(a) use of the data is permitted by or under an enactment other than these Regulations or the UK GDPR; or

(b) the relevant person has obtained the consent of the data subject to the proposed use of the data.

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) Before establishing a business relationship or entering into an occasional transaction with a new customer, as well as providing the customer with the information required under Article 13 of the UK GDPR (information to be provided where personal data are collected from the data subject), relevant persons must provide the customer with a statement that any personal data received from the customer will be processed only—

(a) for the purposes of preventing money laundering, terrorist financing or proliferation financing, or

(b) as permitted under paragraph (3).

(7) In Article 6(1) of the UK GDPR (lawfulness of processing), the reference in point (e) to processing of personal data that is necessary for the performance of a task carried out in the public interest includes processing of personal data in accordance with these Regulations that is necessary for the prevention of money laundering, terrorist financing or proliferation financing.

(8) In the case of sensitive processing of personal data for the purposes of the prevention of money laundering, terrorist financing or proliferation financing, section 10 of, and Schedule 1 to, the Data Protection Act 2018 make provision about when the processing meets a requirement in Article 9(2) or 10 of the UK GDPR for authorisation under the law of the United Kingdom (see, for example, paragraphs 10, 11 and 12 of that Schedule).

(9) In this regulation—

“data subject” has the same meaning as in the Data Protection Act 2018 (see section 3 of that Act);

“personal data” and “processing” have the same meaning as in Parts 5 to 7 of that Act (see section 3(2), (4) and (14) of that Act);

“sensitive processing” means the processing of personal data described in Article 9(1) or 10 of the UK GDPR (special categories of personal data and personal data relating to criminal convictions and offences etc).

PART 5 — Beneficial Ownership Information

Application of this Part

42

(1) This Part applies to UK bodies corporate and relevant trusts.

(2) For the purposes of this Part—

(a) a “UK body corporate” is a body corporate which is incorporated under the law of the United Kingdom or any part of the United Kingdom, and includes an eligible Scottish partnership;

(b) a “relevant trust” is—

(i) a UK trust which is an express trust; ...

(ii) a non-UK trust which is an express trust; and

(aa) receives income from a source in the United Kingdom; or

(bb) has assets in the United Kingdom,

on which it is liable to pay one or more of the taxes referred to in regulation 45(14); or

(iii) any other non-UK trust which is an express trust, is not a trust listed in Schedule 3A (excluded trusts) and whose trustees (in their capacity as such)—

(aa) acquire an interest in land in the United Kingdom; ...

(aaa) acquired an interest in land in the United Kingdom before 6th October 2020 and continued to hold that interest up to and including the date on which this sub-paragraph comes into force; or

(bb) enter into a business relationship with a relevant person, where at least one of those trustees is resident in the United Kingdom and the trust is not an EEA registered trust;

(i) all the trustees are resident in the United Kingdom; or

(ii) sub-paragraph (d) applies;

(d) this sub-paragraph applies if—

(i) at least one trustee is resident in the United Kingdom, and

(ii) the settlor was resident ... in the United Kingdom at the time when—

(aa) the trust was set up, or

(bb) the settlor added funds to the trust;

(e) a trust is a “non-UK trust” if it is not a UK trust;

(f) a “collective investment scheme” has the meaning given in regulation 12H of the International Tax Compliance Regulations 2015 .

(2A) In relation to a trust that was set up before 6 April 2025, paragraph (2)(d)(ii) has effect as if after “resident” there were inserted “and domiciled”.

(3) A trustee or settlor is resident in the United Kingdom—

(a) in the case of a body corporate, if it is a UK body corporate;

(b) in the case of an individual, if the individual is resident in the United Kingdom for the purposes of one or more of the taxes referred to in regulation 45(14).

(4) For the purposes of this Part, an “EEA registered trust” is a trust established in a country or territory other than the United Kingdom where national legislation applies having a broadly equivalent effect to the requirements laid down in the fourth money laundering directive.

(5) For the purposes of this Part, the trustees acquire an interest in land in the United Kingdom where at least one of the trustees becomes registered—

(a) in the register of title kept under the Land Registration Act 2002 as the proprietor of—

(i) a freehold estate in land; or

(ii) a leasehold estate in land granted for a term of more than 7 years from the date of the grant;

(b) in the Land Register of Scotland as the proprietor or as the tenant under a lease (“lease” and “proprietor” having the meanings given by section 113(1) of the Land Registration etc. (Scotland) Act 2012); or

(i) a freehold estate in land; or

(ii) a leasehold estate in land granted for a term of more than 21 years from the date of the grant.

(6) For the purposes of this Part—

(a) the trustees have a controlling interest in a third country entity if they meet any of the specified conditions in paragraphs 2 to 5 of Schedule 1A to the Companies Act 2006 (people with significant control over a company) where that Schedule is read with the following modifications—

(i) references to X having or holding a share in or a right in relation to, or exercising significant influence or control over, company Y are to be read as references to the trustees (in their capacity as such) having or holding a share in or a right in relation to, or exercising significant influence or control over, the third country entity;

(ii) for “25%” wherever it occurs in each of paragraphs 2 (ownership of shares), 3 (voting rights), 13 (calculating shareholdings), and 14 (voting rights), read “50%”; and

(b) “third country entity” means a body corporate, partnership or other entity that—

(i) is governed by the law of a country or territory other than the United Kingdom and (in each case) is a legal person under that law, and

(ii) is not subject to national legislation having a broadly equivalent effect to the requirements laid down in Article 30 of the fourth money laundering directive.

Corporate bodies: obligations

43

(1) When a UK body corporate which is not listed on a regulated market enters into a relevant transaction with a relevant person, or forms a business relationship with a relevant person, the body corporate must on request from the relevant person provide the relevant person with—

(a) information identifying—

(i) its name, registered number, registered office and principal place of business;

(ii) its board of directors, or if there is no board, the members of the equivalent management body;

(iii) the senior persons responsible for its operations;

(iv) the law to which it is subject;

(v) its legal owners;

(vi) its beneficial owners; and

(b) its articles of association or other governing documents.

(2) For the purposes of paragraph (1)(a)(v) and (vi), references to the legal owners and beneficial owners of a UK body corporate include a reference to the legal owners and beneficial owners of any body corporate or trust which is directly or indirectly a legal owner or beneficial owner of that body corporate.

(3) Paragraph (1)(a)(vi) does not apply if no person qualifies as a beneficial owner (within the meaning of regulation 5(1)) of—

(a) the UK body corporate; or

(b) any body corporate which is directly or indirectly the owner of that UK body corporate.

(4) If, during the course of a business relationship, there is any change in the identity of the individuals or information falling within paragraph (1), the UK body corporate referred to in paragraph (1) must notify the relevant person of the change and the date on which it occurred within fourteen days from the date on which the body corporate becomes aware of the change.

(5) The UK body corporate must on request provide all or part of the information referred to in paragraph (1) to a law enforcement authority.

(6) Information requested under paragraph (5), must be provided before the end of such reasonable period as may be specified by the law enforcement authority.

(7) The provision of information in accordance with this regulation is not to be taken to breach any restriction, however imposed, on the disclosure of information.

(8) Where a disclosure is made in good faith in accordance with this regulation no civil liability arises in respect of the disclosure on the part of the UK body corporate.

(9) For the purposes of this regulation, a “relevant transaction” means a transaction in relation to which the relevant person is required to apply customer due diligence measures under regulation 27.

Trustee obligations

44

(1) The trustees of a relevant trust must maintain accurate and up-to-date records in writing of all the beneficial owners of the trust, and of any potential beneficiaries referred to in paragraph (5)(b), containing the information required by regulation 45(2)(b) to (d) and (5)(f) and (g).

(2) When a trustee of a relevant trust, acting as trustee, enters into a relevant transaction with a relevant person, or forms a business relationship with a relevant person, the trustee must—

(a) inform the relevant person that it is acting as trustee; and

(b) on request from the relevant person, provide the relevant person with information identifying all the beneficial owners of the trust (which, in the case of a class of beneficiaries, may be done by describing the class of persons who are beneficiaries or potential beneficiaries under the trust).

(3) If, during the course of a business relationship, there is any change in the information provided under paragraph (2), the trustees must notify the relevant person of the change and the date on which it occurred within fourteen days from the date on which any one of the trustees became aware of the change.

(4) For the purposes of this regulation, a “relevant transaction” means a transaction in relation to which the relevant person is required to apply customer due diligence measures under regulation 27.

(5) The trustees of a relevant trust must on request provide information to any law enforcement authority—

(a) about the beneficial owners of the trust; and

(b) about any other individual referred to as a potential beneficiary in a document from the settlor relating to the trust such as a letter of wishes.

(6) Information requested under paragraph (5) must be provided before the end of such reasonable period as may be specified by the law enforcement authority.

(7) The provision of information in accordance with this regulation is not to be taken to breach any restriction, however imposed, on the disclosure of information.

(8) Where a disclosure is made in good faith in accordance with this regulation no civil liability arises in respect of the disclosure on the part of the trustees of a relevant trust.

(9) If the trustees of a relevant trust are relevant persons who are being paid to act as trustees of that trust, they must—

(a) retain the records referred to in paragraph (1) for a period of five years after the date on which the final distribution is made under the trust;

(b) make arrangements for those records to be deleted at the end of that period, unless—

(i) the trustees are required to retain them by or under any enactment or for the purpose of court proceedings;

(ii) any person to whom information in a record relates consents to the retention of that information; or

(iii) the trustees have reasonable grounds for believing that records containing the personal data need to be retained for the purpose of legal proceedings.

(10) For the purposes of this regulation, any of the following authorities is a law enforcement authority—

(a) the Commissioners;

(b) the FCA;

(d) police forces maintained under section 2 of the Police Act 1996 ;

(e) the Police of the Metropolis;

(f) the Police for the City of London;

(g) the Police Service of Scotland;

(h) the Police Service of Northern Ireland;

(i) the Serious Fraud Office.

(11) For the purposes of this regulation, in the case of a relevant trust which is a collective investment scheme, a reference to the trustees of a relevant trust includes a reference to the manager or operator of the collective investment scheme.

Register of beneficial ownership

45

(1) The Commissioners must maintain a register (“the register”) of—

(a) beneficial owners of taxable relevant trusts; and

(b) potential beneficiaries (referred to in regulation 44(5)(b)) of taxable relevant trusts.

(2) The trustees of a taxable relevant trust must within the time specified in paragraph (3) provide the Commissioners with—

(a) the information specified in paragraph (5) in relation to the trust;

(b) the information specified in paragraph (6) in relation to each of the individuals referred to in regulation 44(2)(b) and (5)(b) (but if sub-paragraph (d) applies, this information does not need to be provided in relation to the beneficiaries of the trust);

(c) the information specified in paragraph (7) in relation to each of the legal entities referred to in regulation 44(2)(b);

(d) the information specified in paragraph (8), where the beneficial owners include a class of beneficiaries, not all of whom have been determined.

(3) The information required under paragraph (2) must, apart from any information already provided to the Commissioners under regulation 45ZA (at a time when the trust was not a taxable relevant trust), be provided—

(a) on or before 31st January after the tax year in which the trustees were first liable to pay any of the taxes referred to in paragraph (14) (“UK taxes”), in the case of a trust which is set up before 6th April 2021;

(b) on or before 1st September 2022, in the case of a trust which is set up after 5th April 2021 where the trustees become liable to pay UK taxes before 4th June 2022;

(4) The information required under paragraphs (2) and (9) must be provided in such form as the Commissioners reasonably require.

(5) The information specified in this paragraph is—

(a) the full name of the trust;

(b) the date on which the trust was set up;

(c) a statement of accounts for the trust, describing the trust assets and identifying the value of each category of the trust assets at the date on which the information is first provided to the Commissioners (including the address of any property held by the trust);

(d) the country where the trust is considered to be resident for tax purposes;

(e) the place where the trust is administered;

(f) a contact address for the trustees;

(g) the full name of any advisers who are being paid to provide legal, financial or tax advice to the trustees in relation to the trust.

(6) The information specified in this paragraph is—

(a) the individual's full name;

(b) the individual's national insurance number or unique taxpayer reference, if any;

(c) if the individual does not have a national insurance number or unique taxpayer reference, the individual's usual residential address;

(d) if the address provided under sub-paragraph (c) is not in the United Kingdom—

(i) the individual's passport number or identification card number, with the country of issue and the expiry date of the passport or identification card; or

(ii) if the individual does not have a passport or identification card, the number, country of issue and expiry date of any equivalent form of identification;

(e) the individual's date of birth;

(f) the nature of the individual's role in relation to the trust.

(7) The information specified in this paragraph is—

(a) the legal entity's corporate or firm name;

(b) the legal entity's unique taxpayer reference, if any;

(d) the legal form of the legal entity and the law by which it is governed;

(e) if applicable, the name of the register of companies in which the legal entity is entered (including details of the country in which it is registered), and its registration number in that register;

(f) the nature of the entity's role in relation to the trust.

(8) The information specified in this paragraph is a description of the class of persons who are beneficiaries or potential beneficiaries under the trust.

(9) The trustees of a taxable relevant trust must—

(a) if a trustee becomes aware that any of the information provided to the Commissioners under paragraph (2) (other than information provided in relation to the value of the trust assets under paragraph (5)(c)) has changed, notify the Commissioners of the change and the date on which it occurred on or before 31st January—

(i) after the tax year in which the change occurred; or

(ii) if the trustees are not liable to pay any UK taxes in that year, after the tax year in which the trustees are liable to pay any UK taxes; or

(b) if the trustees are not aware of any change to any of the information provided under paragraph (2), confirm that fact to the Commissioners on or before 31st January after the tax year in which the trustees are liable to pay any UK taxes.

(10) The register must contain the information referred to in—

(a) regulation 44(2)(b) and (5)(b), in relation to taxable relevant trusts;

(b) regulation 44(2)(b) and (5)(b) and paragraphs (10E) to (10G), in relation to the types of taxable relevant trust mentioned in paragraphs (10A) to (10C);

(10A) The trustees of a taxable relevant trust which is a UK trust, and is not an EEA registered trust or a trust listed in Schedule 3A, must provide the Commissioners with the information specified in paragraph (10E), apart from any information already provided to the Commissioners under regulation 45ZA (at a time when the trust was not a taxable relevant trust)—

(a) on or before 1st September 2022, where the trustees become liable to pay UK taxes before 4th June 2022;

(b) within 90 days of the trustees becoming liable to pay UK taxes, in any other case.

(10B) This paragraph applies to the trustees of a taxable relevant trust which is a non-UK trust, has at least one trustee resident in the United Kingdom and is not an EEA registered trust or a trust falling within Schedule 3A, where the trustees of that trust, in their capacity as such—

(a) enter into a business relationship with a relevant person; or

(b) acquire an interest in land in the United Kingdom.

(10C) This paragraph applies to the trustees of a taxable relevant trust which is a non-UK trust and is not a trust listed in Schedule 3A, where none of the trustees are resident in the United Kingdom and those trustees, in their capacity as such, acquire an interest in land in the United Kingdom.

(10D) Where paragraph (10B) or (10C) applies, the trustees must provide the Commissioners with the information specified in paragraph (10E), apart from any information already provided to the Commissioners under regulation 45ZA (at a time when the trust was not a taxable relevant trust)—

(a) on or before 1st September 2022, where the trustees become liable to pay UK taxes before 4th June 2022;

(b) otherwise, within 90 days of the trustees acquiring the land or (where paragraph (10B)(a) applies) entering into the business relationship.

(10E) The trustees must provide the Commissioners with the following information in relation to each of the beneficial owners of the trust who is an individual, and in relation to any other individual referred to as a potential beneficiary in a document from the settlor relating to the trust such as a letter of wishes—

(a) the individual’s country of residence;

(b) the individual’s nationality;

but if paragraph (10F) applies, this information does not need to be provided in relation to the beneficiaries of the trust.

(10F) Where the beneficial owners include a class of beneficiaries, not all of whom have been determined, the information to be provided under paragraph (10E) is a description of the class of persons who are beneficiaries or potential beneficiaries under the trust.

(10G) The trustees of a trust to which paragraph (10A) , (10B) or (10C) applies must—

(a) if they have a controlling interest in a third country entity, provide the Commissioners with the following information, apart from any information already provided under regulation 45ZA(4), at the same time as providing the information under paragraph (10E)—

(i) the third country entity’s corporate or firm name;

(ii) the country or territory by whose law the third country entity is governed;

(iii) the registered or principal office of the third country entity;

(b) if they acquire an interest in a third country entity after providing the information under paragraph (10E), provide the Commissioners with the information specified in this paragraph within 90 days of the date on which they acquired that interest.

(10H) The trustees of a taxable relevant trust to which paragraph (10A), (10B) or (10C) applies must, if the trustee becomes aware that any of the information provided to the Commissioners under paragraphs (10E) to (10G) has changed, notify the Commissioners of the change and the date on which it occurred within 90 days of the trustee becoming aware of the change.

(10I) The information required under paragraphs (10E) to (10H) must be provided in such form as the Commissioners reasonably require.

(10J) The Commissioners must keep the information referred to in paragraph (10) on the register for at least five years, and no more than 10 years, after the trust to which it relates has ceased to exist or has ceased to be a type of trust referred to in paragraph (10).

(11) The Commissioners may keep the register in any form they think fit.

(12) The Commissioners must ensure that the information on the register may be inspected by any law enforcement authority.

(13) The Commissioners may make arrangements to ensure that the NCA are able to use information on the register to respond promptly to a request for information about the persons referred to in regulation 44(2)(b) and (5)(b) , paragraphs (10E) to (10G) and regulation 45ZA(3) and (4) made by—

(a) an authority responsible for functionsequivalent to those provided for in these Regulations in a third country, or

(b) a financial intelligence unit of a third country.

(14) For the purposes of this regulation, a taxable relevant trust is a relevant trust in any year in which its trustees are liable to pay any of the following taxes in the United Kingdom in relation to assets or income of the trust—

(a) income tax;

(b) capital gains tax;

(d) stamp duty land tax (within the meaning of section 42 of the Finance Act 2003 );

(e) land and buildings transaction tax (within the meaning of section 1 of the Land and Buildings Transaction Tax (Scotland) Act 2013 );

(ea) land transaction tax (within the meaning of section 2 of the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017);

(f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(15) For the purpose of this regulation, in the case of a taxable relevant trust which is a collective investment scheme, a reference to the trustees of a taxable relevant trust includes a reference to the manager or operator of the collective investment scheme.

Register of beneficial ownership: additional types of trust

45ZA

(1) In relation to trusts which are—

(a) type A trusts, other than taxable relevant trusts;

(b) type B trusts, other than taxable relevant trusts;

the information to be contained in the register maintained under this Part is the information referred to in paragraphs (3) and (4), and in this paragraph, “taxable relevant trust” has the meaning given in regulation 45.

(2) For the purposes of this regulation—

(a) a “type A trust” is a UK trust which is an express trust and is not an EEA registered trust or a trust listed in Schedule 3A;

(b) a “type B trust” is a non-UK trust which has at least one trustee resident in the United Kingdom, is an express trust and is not an EEA registered trust or a trust listed in Schedule 3A, where the trustees of that trust, in their capacity as such—

(i) enter into a business relationship with a relevant person; ...

(ii) acquire an interest in land in the United Kingdom; or

(iii) acquired an interest in land in the United Kingdom before 6th October 2020 and continued to hold that interest up to and including the date on which this paragraph comes into force;

(c) a “type C trust” is a non-UK trust which is an express trust and is not a trust listed in Schedule 3A, where none of the trustees are resident in the United Kingdom and those trustees, in their capacity as such—

(i) acquire an interest in land in the United Kingdom, or

(ii) acquired an interest in land in the United Kingdom before 6th October 2020 and continued to hold that interest up to and including the date on which this paragraph comes into force.

(3) The trustees of a trust to which paragraph (1) applies must, within the time specified in paragraph (5), provide the Commissioners with the following information, apart from any information already provided to the Commissioners under regulation 45 (at a time when the trust was a taxable relevant trust within the meaning of that regulation)—

(a) the information specified in paragraphs (i) to (v) in relation to each of the beneficial owners of the trust who is an individual, and in relation to any other individual referred to as a potential beneficiary in a document from the settlor relating to the trust such as a letter of wishes—

(i) the individual’s full name;

(ii) the individual’s month and year of birth;

(iii) the individual’s country of residence;

(iv) the individual’s nationality;

(v) the nature and extent of the individual’s beneficial interest,

but if sub-paragraph (b) applies, this information does not need to be provided in relation to the beneficiaries of the trust;

(b) where the beneficial owners include a class of beneficiaries, not all of whom have been determined, a description of the class of persons who are beneficiaries or potential beneficiaries under the trust;

(c) the information specified in paragraphs (i) to (iii) in relation to each of the beneficial owners of the trust who is a legal entity—

(i) the legal entity’s corporate or firm name;

(ii) the registered or principal office of the legal entity;

(iii) the nature of the entity’s role in relation to the trust.

(4) The trustees of a trust to which paragraph (1) ... applies must—

(a) if they have a controlling interest in a third country entity, provide the Commissioners with the following information, apart from any information already provided under regulation 45(10G), at the same time as providing the information under paragraph (3)—

(i) the third country entity’s corporate or firm name;

(ii) the country or territory by whose law the third country entity is governed;

(iii) the registered or principal office of the third country entity;

(b) if they acquire an interest in a third country entity after providing the information under paragraph (3), provide the Commissioners with the information specified in this paragraph within 90 days of the date on which they acquired that interest.

(5) The information required under paragraph (3) must be provided—

(a) on or before 1st September 2022, in the case of a trust which first falls within paragraph (1)(a), (b)(i), (b)(ii) or (c)(i) before 4th June 2022;

(aa) on or before 1st September 2027, in the case of a trust which falls within paragraph (1)(b)(iii) or (c)(ii);

(b) in any other case, within 90 days of the trust being set up, or, if later, within 90 days of the trust first falling within paragraph (1)(a), (b)(i), (b)(ii) or (c)(i).

(6) If a trustee becomes aware that any of the information provided to the Commissioners under paragraph (3) or (4) has changed, the trustee must notify the Commissioners of the change within 90 days of the trustee becoming aware of the change.

(7) The information required under paragraphs (3), (4) and (6) must be provided in such form as the Commissioners reasonably require.

Access to information on the register

45ZB

(1) The Commissioners must make the accessible information available to a person who demonstrates to the Commissioners a legitimate interest in the beneficial ownership of a trust, where that person so requests.

(2) The Commissioners must make available to a trustee, on a request by that trustee, such information as the trustee reasonably requires in order to enable a relevant person to meet the relevant person’s obligations under Part 3, where that relevant person proposes to—

(a) form a business relationship with the trust; or

(b) enter into a transaction with the trust in relation to which the relevant person is required to apply customer due diligence measures under regulation 27.

(3) The Commissioners must make the accessible information available to a person who makes a written request about a type A trust , a type B trust or a type C trust (within the meaning given in regulation 45ZA(2)), where the trustees of that trust have a controlling interest in a third country entity.

(4) The Commissioners may—

(a) charge a fee to any person making a request for accessible information under paragraph (1) or (3), which must not exceed such amount as the Commissioners consider will enable them to meet any expenses reasonably incurred by them in dealing with such requests, including expenses incurred in maintaining the register;

(b) require the person to submit the request in such a manner as the Commissioners may reasonably require, including by requiring the person to register in a manner specified by the Commissioners; and

(5) Paragraphs (1) and (3) do not apply to the accessible information in a case where, and to the extent that, the Commissioners consider that the information should be exempt because—

(a) the Commissioners consider that making the information available would expose the beneficial owner to a disproportionate risk of fraud, kidnapping, blackmail, extortion, harassment, violence or intimidation;

(b) the beneficial owner is under the age of 18; or

(i) lacks capacity within the meaning of section 2 of the Mental Capacity Act 2005;

(ii) is incapable within the meaning of section 1 of the Adults with Incapacity (Scotland) Act 2000; or

(iii) is incapable by reason of mental disorder within the meaning of Article 3(1) of the Mental Health (Northern Ireland) Order 1986,

and in this paragraph, references to the beneficial owner include references to any other individual referred to as a potential beneficiary in a document from the settlor relating to the trust such as a letter of wishes.

(6) Where the Commissioners decide to exempt any of the accessible information in accordance with paragraph (5), the Commissioners must inform the person requesting the information of the decision, explain that the person is entitled to seek a review, and specify the period in which the person must inform the Commissioners that the person wishes to seek a review (which must not be less than 30 days beginning with the day on which the person is informed of the decision).

(7) If the person seeks a review, the Commissioners may decide to—

(a) uphold the decision to exempt the information;

(b) make the information available; or

and must inform the person who made the request of their decision.

(8) For the purposes of this regulation, the “accessible information” means the details specified in paragraph (9) or (10) which are held on the register in relation to a beneficial owner of a type A trust , a type B trust or a type C trust (within the meaning given in regulation 45ZA(2)), or in relation to an individual referred to as a potential beneficiary in a document from the settlor relating to the trust such as a letter of wishes.

(9) The details are, in relation to an individual—

(a) the individual’s full name;

(b) the individual’s month and year of birth;

(d) the individual’s nationality;

(e) the nature and extent of the individual’s beneficial interest.

(10) The details are, in relation to a legal entity—

(a) the legal entity’s corporate or firm name;

(b) the registered or principal office of the legal entity;

(11) For the purposes of this regulation, the Commissioners must take account of the following when determining whether a person has a legitimate interest in the beneficial ownership of a trust—

(a) whether the person is involved in an investigation into money laundering, terrorist financing or proliferation financing;

(b) whether the person is making the request for accessible information in order to further an investigation into a specified suspected instance of money laundering, terrorist financing or proliferation financing;

(i) any criminal investigation or criminal proceedings;

(ii) any other investigation mentioned in section 342(1) of the Proceeds of Crime Act 2002 (offences of prejudicing investigation); or

(iii) any investigation by an appropriate officer (within the meaning given in regulation 87(10)) into a potential contravention of a relevant requirement,

which is or are being, or is or are about to be, conducted;

(d) whether, having regard to the information produced by the person making the request, it is reasonable for that person to suspect that the trust is being used for money laundering, terrorist financing or proliferation financing.

PART 5A — Requests for information about accounts and safe-deposit boxes

Duty to establish mechanism for requests

45A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Duty to respond to requests for information

45B

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Requests for information about accounts

45C

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Requests for information about safe-deposit boxes

45D

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Requirements for making a request for information

45E

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Access to requests and responses, guidance and review

45F

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Record keeping

45G

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Interpretation

45H

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART 6 — Money Laundering and Terrorist Financing: Supervision and Registration

CHAPTER 1 — Duties of supervisory authorities

Duties of supervisory authorities

46

(1) A supervisory authority must effectively monitor the relevant persons for which it is the supervisory authority (“its own sector”) and take necessary measures for the purpose of —

(a) securing compliance by such persons with the requirements of these Regulations; and

(b) securing that any application for which the supervisory authority grants approval under regulation 26 meets the requirements of regulation 26(7), whether or not the person making the application, or being approved, is a relevant person.

(2) Each supervisory authority must—

(a) adopt a risk-based approach to the exercise of its supervisory functions, informed by the risk assessments carried out by the authority under regulation 17;

(b) ensure that its employees and officers have access both at its offices and elsewhere to relevant information on the domestic and international risks of money laundering and terrorist financing which affect its own sector;

(c) base the frequency and intensity of its on-site and off-site supervision on the risk profiles prepared under regulation 17(4);

(d) keep a record in writing of the actions it has taken in the course of its supervision, and of its reasons for deciding not to act in a particular case;

(e) take effective measures to encourage its own sector to report actual or potential breaches of the provisions of these Regulations to it;

(f) provide one or more secure communication channels for persons to report actual or potential breaches of these Regulations to it;

(g) take reasonable measures to ensure that the identity of the reporting person is known only to the supervisory authority.

(3) In determining its approach to the exercise of its supervisory functions the supervisory authority must—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) take account of the degree of discretion permitted to relevant persons in taking measures to counter money laundering and terrorist financing.

(4) In accordance with its risk-based approach, the supervisory authority must take appropriate measures to review—

(a) the risk assessments carried out by relevant persons under regulation 18;

(b) the adequacy of the policies, controls and procedures adopted by relevant persons under regulation 19 to 21 and 24, and the way in which those policies, controls and procedures have been implemented.

(5) A supervisory authority which, in the course of carrying out any of its supervisory functions or otherwise, knows or suspects, or has reasonable grounds for knowing or suspecting, that a person is or has engaged in money laundering or terrorist financing must as soon as practicable inform the NCA.

(6) A disclosure made under paragraph (5) is not to be taken to breach any restriction, however imposed, on the disclosure of information.

(7) Where a disclosure under paragraph (5) is made in good faith, no civil liability arises in respect of the disclosure on the part of the person by whom, or on whose behalf, it is made.

(8) The FCA, when carrying out its supervisory functions in relation to an auction platform—

(a) must effectively monitor the auction platform's compliance with—

(i) the customer due diligence requirements of regulation 17 of the UK auctioning regulations;

(ii) the monitoring and record-keeping requirements of regulation 37 of those Regulations; and

(iii) the notification requirements of regulation 38(4) and (5) of those Regulations; and

(b) may monitor the auction platform's compliance with regulations 18 to 21 and 24 of these Regulations.

(9) The functions of the FCA under these Regulations shall be treated for the purposes of Parts 1, 2 and 4 of Schedule 1ZA to FSMA (the Financial Conduct Authority) as functions conferred on the FCA under that Act.

Annual reports by self-regulatory organisations

46A

A self-regulatory organisation must publish or make arrangements to publish an annual report containing information about—

(a) measures taken by the self-regulatory organisation to encourage the reporting of actual or potential breaches as referred to in regulation 46(2)(e);

(b) the number of reports of actual or potential breaches received by that self-regulatory organisation as referred to in regulation 46(2)(e);

(c) the number and description of measures carried out by the self-regulatory organisation to monitor, and enforce, compliance by relevant persons with their obligations under—

(i) Part 3 (customer due diligence);

(ii) Part 3 of the Terrorism Act 2000 (terrorist property) and Part 7 of the Proceeds of Crime Act 2002 (money laundering) ;

(iii) regulation 40 (record-keeping); and

(iv) regulations 20 to 24 (policies and controls etc.).

Duties of supervisory authorities: information

47

(1) A supervisory authority must, in any way it considers appropriate, make up-to-date information on money laundering and terrorist financing available to those relevant persons which it supervises (“its own sector”).

(2) The information referred to in paragraph (1) must include the following—

(a) information on the money laundering and terrorist financing practices considered by the supervisory authority to apply to its own sector;

(b) a description of indications which may suggest that a transfer of criminal funds is taking place in its own sector;

(c) a description of the circumstances in which the supervisory authority considers that there is a high risk of money laundering or terrorist financing.

(3) The information referred to in paragraph (1) must also include information from the following sources which the supervisory authority considers is relevant to its own sector—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(f) the report prepared by the Treasury and the Home Office under regulation 16(6);

(g) any relevant information made available by the Treasury and the Home Office under regulation 16(8);

(h) any relevant information published by the Director General of the NCA under section 4(9) (operations) or 6 (duty to publish information) of the Crime and Courts Act 2013 .

Duties of the FCA: guidance on politically exposed persons

48

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