UK Treasury EU AML4 Directive
On Mar. 15, UK Treasury issued rules to implement EU AML directive.
- Follows UK Treasury Sep. 2016 proposal on implementing AML directive, see #29068.
- Said responsive to UK BEIS consultation on AML supervision cutting red tape review.
- 2017 Measures
- Create a new watchdog that will tackle potential weaknesses in supervisory system.
- Aimed to make more difficult for criminals and terrorists, who are trying to exploit.
- Establish an office for professional body anti-money laundering supervision (OPBAS).
- Raise supervisory standards, ensure supervisors and law enforcement work together.
- Money Laundering Regulation
- OPBAS will complement updated money laundering regulations published by Treasury.
- Draft regulations to bring the UK AML/CFT regime in line with international standards.
- Require supervisors draw on common factors, when developing their risk assessments.
- Also need maintain records of their investigations and decisions on disciplinary action.
- OPBAS Role in Harmonization
- Sectors subject to AML are supervised by 25 bodies, 22 are in accountancy and legal.
- Use of different bodies can lead to inconsistencies that criminals may look to exploit.
- Research shows serious and organised crime, costs the UK at least £24 bn every year.
- Creation of OPBAS will ensure high standard across the regimes, by minimum burden.
- Professional Body Coordination
- OPBAS will set out how professional body AML supervisors should meet AML obligation.
- Also ensure they do so, with the power to penalize any breaches of the EU regulation.
- Government will approve one piece of AML guidance in each sector to reduce burden.
- Complement Joint Money Laundering Steering Group Guidance, and FCA crime guide.
- Politically-exposed Persons
- Also provide clarity to firms, on their treatment of politically exposed persons (PEPs).
- Steps address concern on disproportionate withdrawal of service from domestic PEPs.
- FCA will publish specific guidance on low- and high-risk PEPs, and will consult shortly.
- On Mar. 16, 2017, FCA proposed guide on treatment of transfers to PEPs, see #31498.
- OPBAS Organization
- OPBAS will be housed in the FCA and operate in its existing governance arrangements.
- Funded by new fees on professional body AML supervisors and legislated by end 2017.
- Government issued call for information on power, should be operational start of 2018.
- Response to 2016 consultation, consult on draft regulation, comment to Apr. 12, 2017.
- Specific OPBAS Consultation
- On Mar. 16, 2017, Treasury also issued OPBAS consultation and proposals, see #31483.
- Mar. 2017 JMLSG Consultation
- On Mar. 21, 2017, joint money laundering steering group, proposed guidance for AML.
- Reflected Treasury revision to UK money laundering regulations to adopt AML directive.
- JMLSG guide also reflected ESA Oct. 2016 proposed risk factor guidelines, see #24268.
- Changed electronic verification, so more even-handed enough, reflect current practices.
- Consultation invited comments on the proposed changes to guidance, by Apr. 28, 2017.
||UK FCA; UK Government; UK Treasury
||Auditor; Bank; BS; Ins
||CP, 474162, PR, 3/21/2017, PR, 3/15/2017, AMLD Dir 2015/849
||AML; Anti-Bribery; Client Money; Compliance; C-Suite; Financial; Legal; Operations; Reporting
||Banking; Corporate; Insurance; Loan; Pensions
Last substantive update on 03/22/2017