The Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) Order 2001

The Money Laundering Regulations 1993 (S.I. 1993/1933)

Interpretation of the 1993 Regulations

438.—(1) Regulation 2 of the Money Laundering Regulations 1993 (interpretation) is amended as follows.

(2) In paragraph (1), for the definition of “European institution” substitute—

““European institution” means an EEA firm of the kind mentioned in sub-paragraph (b) or (c) of paragraph 5 of Schedule 3 to the Financial Services and Markets Act 2000 which qualifies for authorisation for the purposes of that Act under paragraph 12 of that Schedule;”.

(3) In that paragraph, after the definition of “European institution” insert—

““home regulated activity”, in relation to a European institution, means any activity listed in Annex 1 to the banking consolidation directive (the text of which is, for convenience set out in the Schedule to these Regulations)—

(a)

in relation to which a supervisory authority in its home state has regulatory functions, and

(b)

in the case of an EEA firm of the kind mentioned in paragraph 5(c) of Schedule 3 to the Financial Services and Markets Act 2000, it is carrying on in its home State;

“home state”, in relation to a person incorporated in or formed under the law of another member State, means that State;”.

(4) In that paragraph, for the definition of “insurance business” substitute—

““insurance business” means business which consists of effecting or carrying out contracts of long-term insurance”.

(5) After paragraph (1) insert—

“(1A) The definition of “insurance business” in paragraph (1) must be read with—

(a) section 22 of the Financial Services and Markets Act 2000;

(b) any relevant order under that section; and

(c) Schedule 2 to that Act.”.

Meaning of “relevant financial business”

439.—(1) Regulation 4 of the Money Laundering Regulations 1993 (relevant financial business) is amended as follows.

(2) In paragraph (1), for sub-paragraph (a) substitute—

“(a) accepting deposits, by a person who has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits (including, in the case of a building society, the raising of money from members of the society by the issue of shares);”.

(3) Sub-paragraph (b) of paragraph (1) is revoked.

(4) In sub-paragraph (e) of paragraph (1), for “the requirements of paragraph 1 of Schedule 2 to the Banking Coordination (Second Council Directive) Regulations 1992 have been complied with” substitute “the establishment conditions in paragraph 13 of Schedule 3 to the Financial Services and Markets Act 2000, or the service conditions in paragraph 14 of that Schedule, have been satisfied;”.

(5) For sub-paragraph (f) of that paragraph substitute—

“(f) business which consists of carrying on one or more of the following kinds of regulated activity in the United Kingdom—

(i) dealing in investments as principal or as agent,

(ii) arranging deals in investments,

(iii) managing investments,

(iv) safeguarding and administering investments,

(v) sending dematerialised instructions,

(vi) establishing etc. a collective investment scheme,

(vii) advising on investments.”.

(6) In paragraph (2)—

(a) sub-paragraph (d) is revoked; and

(b) for sub-paragraph (e) substitute—

“(e) in relation to any person who is for the time being specified in any order made under section 38 of the Financial Services and Markets Act 2000 as an exempt person in respect of all or any regulated activities (within the meaning of that Act), those activities in respect of which he is exempt.”.

(7) Paragraph (3) of that regulation is revoked.

(8) In paragraph (4) of that regulation, the definition of “deposit-taking business” is revoked.

(9) After that paragraph insert—

“(5) Sub-paragraphs (a) and (f) of paragraph (1) must be read with—

(a) section 22 of the Financial Services and Markets Act 2000,

(b) any relevant order under that section; and

(c) Schedule 2 to that Act.”.

Accounts with deposit takers which constitute evidence of identity

440.  In paragraph (4) of regulation 8 of the Money Laundering Regulations 1993 (payment by post etc.) for sub-paragraphs (a)(1) and (b) substitute—

“(a) a person who for the time being has permission under Part 4 of the Financial Services and Markets Act 2000 to accept deposits;

(b) an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to the Financial Services and Markets Act 2000 which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to accept deposits; or”.

Responsibility of principal for record-keeping by appointed representative

441.—(1) In paragraph (4) of regulation 13 of the Money Laundering Regulations 1993 (record-keeping procedures; supplementary provisions)—

(a) for the words from the beginning of the paragraph to the end of sub-paragraph (b) substitute “Where a person bound by regulation 5(1) above is an appointed representative”; and

(b) for “under section 44 of the Financial Services Act 1986” substitute “under section 39 of the Financial Services and Markets Act 2000”.

(2) For paragraph (6) of that regulation substitute—

“(6) For the purposes of paragraphs (4) and (5) above, “appointed representative” has the same meaning as in section 39(2) of the Financial Services and Markets Act 2000, and “principal” (in relation to an appointed representative) has the same meaning as in section 39(1) of that Act.”.

Meaning of references to “supervisory authorities” in the 1993 Regulations

442.—(1) In paragraph (2) of regulation 15 of the Money Laundering Regulations 1993 (supervisory authorities)—

(a) sub-paragraphs (b), (c), (d), (f), (g), (l), (m), (n), (o) and (p) are revoked, and

(b) for sub-paragraph (e) substitute—

“(e) a designated professional body within the meaning of section 326(2) of the Financial Services and Markets Act 2000;”.

(2) For paragraph (3) substitute—

“(3) These Regulations apply to the Secretary of State and to the Treasury in the exercise, in relation to any person carrying on relevant financial business, of their respective functions under the enactments relating to companies or insolvency or under the Financial Services and Markets Act 2000.”.

Persons who must disclose information indicating engagement in money laundering

443.  In paragraph (6) of regulation 16 of the Money Laundering Regulations 1993 (supervisors etc. to report evidence of money laundering)—

(a) in sub-paragraph (a) the words “section 17 of the Industrial Assurance Act 1923 or” are revoked;

(b) for sub-paragraph (e) substitute—

“(e) a person appointed under section 167, 168(3) or (5), or 169(1)(b) or 284 of the Financial Services and Markets Act 2000, or under regulations made as a result of section 262(2)(k) of that Act, to conduct an investigation, or;”;

(c) sub-paragraphs (f) and (fa)(2) are revoked; and

(d) in sub-paragraph (g) the words “section 44 of the Insurance Companies Act 1982,” and “section 106 of the Financial Services Act 1986,” are revoked.

(1)

Sub-paragraph (4)(a) of regulation 8 was amended by S.I. 1998/1129, article 2, Schedule 1, paragraph 13(c).

(2)

Sub-paragraph (fa) was inserted into regulation 15(6) by S.I. 1994/1696, regulation 68, Schedule 8, paragraph 36.