The Electronic Money Regulations 2011

The Money Laundering Regulations 2007

19.  The Money Laundering Regulations 2007 are amended as follows—

(a) in regulation 2(1) for the definition of “the electronic money directive” substitute the following definitions—

““the electronic money directive” means Directive 2009/110/EC of the European Parliament and of the Council of 16th September 2009 on the taking up, pursuit and prudential supervision of the business of electronic money institutions;”

““electronic money institution” has the meaning given by regulation 2(1) of the Electronic Money Regulations 2011;”;

(b) in regulation 3—

(i) in paragraph (2)(a) for “Article 4(1)(a)” substitute “Article 4(1)”; and

(ii) in paragraph (3)(a) for “and 14” substitute “, 14 and 15”;

(c) in regulation 13(7)(d)—

(i) in the opening words for “Article 1(3)(b)” substitute “Article 2(2)”;

(ii) in paragraph (i) for “150 euro” substitute “250 euro or, in the case of electronic money used to carry out payment transactions within the United Kingdom, 500 euro”; and

(iii) in paragraph (ii) for “by the bearer” to the end substitute—

“by the electronic money holder (within the meaning of Article 11 of the electronic money directive).”;

(d) in regulation 17(5)(1) after “those Regulations” insert—

“; and

(c)

any electronic money institution or EEA authorised electronic money institution (within the meaning of the Electronic Money Regulations 2011) which provides payment services mainly falling within paragraph 1(f) of Schedule 1 to the Payment Services Regulations 2009”;

(e) in regulation 20 after paragraph (5) insert—

“(5A) A relevant person who is an issuer of electronic money must appoint an individual to monitor and manage compliance with, and the internal communication of, the policies and procedures relating to the matters referred to in paragraph (1)(a) to (e), and in particular to—

(a) identify any situations of higher risk of money laundering or terrorist financing;

(b) maintain a record of its policies and procedures, risk assessment and risk management including the application of such policies and procedures;

(c) apply measures to ensure that such policies and procedures are taken into account in all relevant functions including in the development of new products, dealing with new customers and in changes to business activities; and

(d) provide information to senior management about the operation and effectiveness of such policies and procedures at least annually.”;

(f) in regulation 23(1)(a) after paragraph (iii) insert—

“(iv) electronic money institutions;”;

(g) in regulation 49A(1)(2), after “Payment Services Regulations 2009” insert “or the Electronic Money Regulations 2011”; and

(h) in Schedule 1—

(i) in the heading, for “and 14” substitute “, 14 and 15”; and

(ii) at the end insert—

“15.   Issuing electronic money.”.

(1)

Regulation 17(5) was substituted by S.I. 2009/209.

(2)

Regulation 49A was inserted by S.I. 2009/209.