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

1. Introductory Text

2. PART 1 Introduction

   1. 1. Citation and commencement

   2. 2. Prescribed regulations

   3. 3. General interpretation

   4. 4. Meaning of business relationship

   5. 5. Meaning of beneficial owner: bodies corporate or partnership

   6. 6. Meaning of beneficial owner: trusts, similar arrangements and others

   7. 7. Supervisory authorities

3. PART 2 Money Laundering and Terrorist Financing

   1. CHAPTER 1 Application

      1. 8. Application

      2. 9. Carrying on business in the United Kingdom

      3. 10. Credit institutions and financial institutions

      4. 11. Auditors and others

      5. 12. Independent legal professionals and trust or company service providers

      6. 13. Estate agents

      7. 14. High value dealers, casinos and auction platforms

      8. 15. Exclusions

   2. CHAPTER 2 Risk assessment and controls

      1. 16. Risk assessment by the Treasury and Home Office

      2. 17. Risk assessment by supervisory authorities

      3. 18. Risk assessment by relevant persons

      4. 19. Policies, controls and procedures

      5. 20. Policies, controls and procedures: group level

      6. 21. Internal controls

      7. 22. Central contact points: electronic money issuers and payment service providers

      8. 23. Requirement on authorised person to inform the FCA

      9. 24. Training

      10. 25. Supervisory action

   3. CHAPTER 3 Ownership and Management Restrictions

      1. 26. Prohibitions and approvals

4. PART 3 Customer Due Diligence

   1. CHAPTER 1 Customer due diligence: general

      1. 27. Customer due diligence

      2. 28. Customer due diligence measures

      3. 29. Additional customer due diligence measures: credit institutions and financial institutions

      4. 30. Timing of verification

      5. 31. Requirement to cease transactions etc

      6. 32. Exception for trustees of debt issues

   2. CHAPTER 2 Enhanced customer due diligence

      1. 33. Obligation to apply enhanced customer due diligence

      2. 34. Enhanced customer due diligence: credit institutions, financial institutions and correspondent relationships

      3. 35. Enhanced customer due diligence: politically exposed persons

      4. 36. Politically exposed persons: other duties

   3. CHAPTER 3 Simplified customer due diligence

      1. 37. Application of simplified customer due diligence

      2. 38. Electronic money

5. PART 4 Reliance and Record-keeping

   1. 39. Reliance

   2. 40. Record-keeping

   3. 41. Data Protection

6. PART 5 Beneficial Ownership Information

   1. 42. Application of this Part

   2. 43. Corporate bodies: obligations

   3. 44. Trustee obligations

   4. 45. Register of beneficial ownership

7. PART 6 Money Laundering and Terrorist Financing: Supervision and Registration

   1. CHAPTER 1 Duties of supervisory authorities

      1. 46. Duties of supervisory authorities

      2. 47. Duties of supervisory authorities: information

      3. 48. Duties of the FCA: guidance on politically exposed persons

      4. 49. Duties of self-regulatory organisations

      5. 50. Duty to co-operate

      6. 51. Regulatory information

      7. 52. Disclosure by supervisory authorities

   2. CHAPTER 2 Registration

      1. 53. Interpretation

      2. 54. Duty to maintain registers of certain relevant persons

      3. 55. Power to maintain registers

      4. 56. Requirement to be registered

      5. 57. Applications for registration in a register maintained under regulation 54 or 55

      6. 58. Fit and proper test

      7. 59. Determination of applications for registration under regulations 54 and 55

      8. 60. Cancellation and suspension of registration in a register under regulation 54 or 55

8. PART 7 Transfer of Funds (Information on the Payer) Regulations

   1. 61. Interpretation

   2. 62. Transfer of funds supervisory authorities

   3. 63. Duties of transfer of funds supervisory authorities

   4. 64. Obligations of payment service providers

9. PART 8 Information and Investigation

   1. 65. Interpretation

   2. 66. Power to require information

   3. 67. Requests in support of other authorities

   4. 68. Requests to other authorities

   5. 69. Entry, inspection of premises without a warrant etc

   6. 70. Entry of premises under warrant

   7. 71. Retention of documents taken under regulation 66 or 70

   8. 72. Provision of information and warrants: safeguards

   9. 73. Admissibility of statements

   10. 74. Powers of relevant officers

10. PART 9 Enforcement

    1. CHAPTER 1 General

       1. 75. Meaning of “relevant requirement”

    2. CHAPTER 2 Civil penalties and notices

       1. 76. Power to impose civil penalties: fines and statements

       2. 77. Power to impose civil penalties: suspension and removal of authorisation

       3. 78. Power to impose civil penalties: prohibitions on management

       4. 79. Imposition of civil penalties

       5. 80. Injunctions

       6. 81. The FCA: disciplinary measures (procedure)

       7. 82. The FCA: procedure (general)

       8. 83. The Commissioners: disciplinary measures (procedure)

       9. 84. Publication: the FCA

       10. 85. Publication: the Commissioners

    3. CHAPTER 3 Criminal offences, penalties and proceedings etc.

       1. 86. Criminal offence

       2. 87. Offences of prejudicing investigations

       3. 88. Information offences

       4. 89. Proceedings: general

       5. 90. Proceedings: jurisdiction

       6. 91. Proceedings: partnership or unincorporated association

       7. 92. Offence by bodies corporate, partnership or unincorporated association

11. PART 10 Appeals

    1. CHAPTER 1 Decisions of the FCA

       1. 93. Appeals against decisions of the FCA

    2. CHAPTER 2 Decisions of the Commissioners

       1. 94. Offer of review

       2. 95. Review by the Commissioners

       3. 96. Extensions of time

       4. 97. Review out of time

       5. 98. Nature of review etc

       6. 99. Appeals against decisions of the Commissioners

       7. 100. Appeals against decisions of the Commissioners: procedure

12. PART 11 Miscellaneous Provisions

    1. 101. Recovery of charges and penalties through the court

    2. 102. Costs of supervision

    3. 103. Obligations on public authorities

    4. 104. Suspicious activity disclosures

    5. 105. Disclosure by the Commissioners

    6. 106. General restrictions

    7. 107. Transfers between the United Kingdom and the Channel Islands and the Isle of Man

    8. 108. Review

    9. 109. Consequential amendments

    10. 110. Revocation and saving provisions

13. Signature

14. SCHEDULES

    1. SCHEDULE 1

       Professional Bodies

       1. 1. Association of Accounting Technicians

       2. 2. Association of Chartered Certified Accountants

       3. 3. Association of International Accountants

       4. 4. Association of Taxation Technicians

       5. 5. Chartered Institute of Legal Executives

       6. 6. Chartered Institute of Management Accountants

       7. 7. Chartered Institute of Taxation

       8. 8. Council for Licensed Conveyancers

       9. 9. Faculty of Advocates

       10. 10. Faculty Office of the Archbishop of Canterbury

       11. 11. General Council of the Bar

       12. 12. General Council of the Bar of Northern Ireland

       13. 13. Insolvency Practitioners Association

       14. 14. Institute of Certified Bookkeepers

       15. 15. Institute of Chartered Accountants in England and Wales

       16. 16. Institute of Chartered Accountants in Ireland

       17. 17. Institute of Chartered Accountants of Scotland

       18. 18. Institute of Financial Accountants

       19. 19. International Association of Bookkeepers

       20. 20. Law Society

       21. 21. Law Society of Northern Ireland

       22. 22. Law Society of Scotland

    2. SCHEDULE 2

       Activities listed in points 2 to 12, 14 and 15 of Annex I to the Capital Requirements Directive

       1. The activities listed in points 2 to 12, 14 and...

    3. SCHEDULE 3

       Relevant Offences

       1. 1. An offence under the Perjury Act 1911 .

       2. 2. An offence under section 89 of the Criminal Justice Act...

       3. 3. An offence under section 20BB of the Taxes Management Act...

       4. 4. An offence under section 11 of the European Communities Act...

       5. 5. An offence under Article 10 of the Perjury (Northern Ireland)...

       6. 6. An offence under the Customs and Excise Management Act 1979...

       7. 7. An offence under the Estate Agency Act 1979, or specified...

       8. 8. An offence under any of sections 1 to 5 of...

       9. 9. An offence under section 35 of the Administration of Justice...

       10. 10. An offence under section 11(1) (undischarged bankrupts) or 13 (criminal...

       11. 11. An offence under section 1, 2, 3, 3ZA or 3A...

       12. 12. An offence under section 112 (false representations or obtaining benefit)...

       13. 13. An offence under section 52 of the Criminal Justice Act...

       14. 14. An offence under the Value Added Tax Act 1994 ....

       15. 15. An offence under section 44(2) of the Criminal Law (Consolidation)...

       16. 16. An offence under the Data Protection Act 1998 .

       17. 17. An offence under the Terrorism Act 2000 .

       18. 18. An offence under paragraph 7(2) or (3) of Schedule 3...

       19. 19. An offence under the Money Laundering Regulations 2001 , the...

       20. 20. An offence under section 35 of the Tax Credits Act...

       21. 21. An offence under Part 7 (money laundering) or Part 8...

       22. 22. An offence under the Commissioners for Revenue and Customs Act...

       23. 23. An offence under the Terrorism Act 2006 .

       24. 24. An offence under section 1, 2, 6 or 7 of...

       25. 25. An offence under section 45 of the Serious Crime Act...

       26. 26. An offence under Parts 1 (general privacy protections); 2 (lawful...

       27. 27. An offence under section 45 (failure to prevent facilitation of...

       28. 28. An offence of cheating the public revenue.

       29. 29. An offence under the law of any part of the...

       30. 30. Any offence which has deception or dishonesty as one of...

       31. 31. The common law offences of conspiracy to defraud and perverting...

       32. 32. An offence of attempting, conspiring or inciting the commission of...

       33. 33. An offence under section 44 of the Serious Crime Act...

       34. 34. An offence of aiding, abetting, counselling or procuring the commission...

       35. 35. An act which— (a) constituted an offence under the law...

    4. SCHEDULE 4

       Supervisory Information

       1. 1. The number of persons subject to the supervision of the...

       2. 2. The number of supervised persons who are individuals.

       3. 3. In the case of a self-regulatory organisation, the number of...

       4. 4. In the case of a self-regulatory organisation, the number of...

       5. 5. The services provided by supervised persons.

       6. 6. The number of firms subject to the supervision of the...

       7. 7. The number of applications for approval received by the supervisory...

       8. 8. The number of approvals under regulation 26 which were not...

       9. 9. In the case of a self-regulatory organisation, the number, amount...

       10. 10. The number of times the supervisory authority has—

       11. 11. The number of times the supervisory authority has exercised any...

       12. 12. The number of contraventions of these Regulations committed by supervised...

       13. 13. The number and amount of penalties or charges which have...

       14. 14. The number of times the supervisory authority has exercised the...

       15. 15. The number of times the supervisory authority or any of...

       16. 16. The number of supervised persons who have contravened requirements imposed...

       17. 17. Information on the money laundering and terrorist financing practices that...

       18. 18. Indications that the supervisory authority considers to suggest that a...

    5. SCHEDULE 5

       Connected Persons

       1. 1. Corporate Bodies

       2. 2. Partnerships

       3. 3. Unincorporated Associations

       4. 4. Individuals

    6. SCHEDULE 6

       Meaning of “relevant requirement”

       1. 1. For the purposes of Part 9 of these Regulations, “relevant...

       2. 2. The requirements specified in this paragraph are those imposed in—...

       3. 3. The requirements specified in this paragraph are those imposed in—...

       4. 4. The requirements specified in this paragraph are those imposed in—...

       5. 5. The requirements specified in this paragraph are those—

       6. 6. The requirements specified in this paragraph are those imposed in...

       7. 7. The requirements specified in this paragraph are those imposed in—...

       8. 8. The requirements specified in this paragraph are those imposed in—...

       9. 9. The requirements specified in this paragraph are those imposed in—...

       10. 10. The requirements specified in this paragraph are those imposed in—...

       11. 11. The requirements specified in this paragraph are those imposed in...

       12. 12. The requirements specified in this paragraph are those imposed under—...

       13. 13. The requirement specified in this paragraph is the requirement imposed...

    7. SCHEDULE 7

       Consequential Amendments

       1. PART 1 Consequential Amendments to Primary Legislation

          1. 1. Solicitors (Scotland) Act 1980

          2. 2. Northern Ireland Act 1998

          3. 3. Financial Services and Markets Act 2000

          4. 4. Terrorism Act 2000

          5. 5. Criminal Justice and Police Act 2001

          6. 6. Proceeds of Crime Act 2002

          7. 7. Counter-Terrorism Act 2008

          8. 8. Borders, Citizenship and Immigration Act 2009

          9. 9. Crime and Courts Act 2013

          10. 10. Finance Act 2014

          11. 11. Bank of England and Financial Services Act 2016

       2. PART 2 Consequential Amendments to Secondary Legislation

          1. 12. Estate Agents (Undesirable Practices) (No 2) Order 1991

          2. 13. Public Interest Disclosure (Prescribed Persons) Order (Northern Ireland) 1999

          3. 14. Terrorism Act 2000 (Crown Servants and Regulators) Regulations 2001

          4. 15. Representation of the People (England and Wales) Regulations 2001

          5. 16. Representation of the People (Scotland) Regulations 2001

          6. 17. Financial Services and Markets Act 2000 (Regulated Activities) Order 2001

          7. 18. Open-Ended Investment Companies Regulations 2001

          8. 19. Proceeds of Crime Act 2002 (Disclosure of information to and by Lord Advocate and Scottish Ministers) Order 2003

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

          10. 21. Legislative and Regulatory Reform (Regulatory Functions) Order 2007

          11. 22. Representation of the People (Northern Ireland) Regulations 2008

          12. 23. Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009

          13. 24. Payment Services Regulations 2009

          14. 25. Companies (Disclosure of Address) Regulations 2009

          15. 26. Overseas Companies Regulations 2009

          16. 27. Defence and Security Public Contracts Regulations 2011

          17. 28. Electronic Money Regulations 2011

          18. 29. Terrorism Act 2000 and Proceeds of Crime Act 2002 (Business in the Regulated Sector) (No 2) Order 2012

          19. 30. Payment to Treasury of Penalties (Enforcement Costs) Order 2013

          20. 31. Public Interest Disclosure (Prescribed Persons) Order 2014

          21. 32. Companies (Disclosure of Date of Birth Information) Regulations 2015

          22. 33. Payment Accounts Regulations 2015

          23. 34. Register of People with Significant Control Regulations 2016

          24. 35. Economic Growth (Regulatory Functions) Order 2017

15. Explanatory Note