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

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The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, CHAPTER 1 is up to date with all changes known to be in force on or before 07 October 2026. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. Help about Changes to Legislation

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CHAPTER 1U.K.Customer due diligence: general

Customer due diligenceU.K.

27.—(1) A relevant person must apply customer due diligence measures if the person—

(a)establishes a business relationship;

(b)carries out an occasional transaction that amounts to a transfer of funds within the meaning of Article 3.9 of the funds transfer regulation exceeding [F1£800];

(c)suspects money laundering or terrorist financing; or

(d)doubts the veracity or adequacy of documents or information previously obtained for the purposes of identification or verification.

(2) A relevant person who is not [F2a letting agent,] a high value dealer, [F3an art market participant, a cryptoasset exchange provider of the kind referred to in paragraph (7D)] [F4or (7E), a custodian wallet provider of the kind referred to in paragraph (7E)] or a casino must also apply customer due diligence measures if the person carries out an occasional transaction that amounts to [F5£12,000] or more, whether the transaction is executed in a single operation or in several operations which appear to be linked.

(3) A high value dealer must also apply customer due diligence measures if that dealer carries out an occasional transaction in cash that amounts to [F6£10,000] or more, whether the transaction is executed in a single operation or in several operations which appear to be linked.

(4) A transaction does not cease to be a “transaction in cash” for the purposes of paragraph (3) if cash is paid by or on behalf of a party to the transaction—

(a)to a person other than the other party to the transaction for the benefit of the other party, or

(b)into a bank account for the benefit of the other party to the transaction.

(5) A casino must also apply customer due diligence measures in relation to any transaction within paragraph (6) that amounts to [F7£2,000] or more, whether the transaction is executed in a single operation or in several operations which appear to be linked.

(6) A transaction is within this paragraph if it consists of—

(a)the wagering of a stake, including—

(i)the purchase from, or exchange with, the casino of tokens for use in gambling at the casino;

(ii)payment for use of gaming machines (within the meaning of section 235 of the Gambling Act 2005 M1); and

(iii)the deposit of funds required to take part in remote gambling; or

(b)the collection of winnings, including the withdrawal of funds deposited to take part in remote gambling (within the meaning of section 4 of the Gambling Act 2005) or winnings arising from the staking of such funds.

(7) In determining whether a transaction amounts to [F8£2,000] or more for the purposes of paragraph (5), no account is to be taken of winnings from a previous transaction which had not been collected from the casino, gaming machine or remote gambling, but are being re-used in the transaction in question.

[F9(7A) A letting agent must also apply customer due diligence measures in relation to any [F10occasional] transaction which consists of the conclusion of an agreement for the letting of land (within the meaning given in regulation 13(7))—

(i)for a term of a month or more, and

(ii)at a rent which during at least part of the term is, or is equivalent to, a monthly rent of [F11£10,000] or more.

(7B) The letting agent must apply customer due diligence measures under paragraph (7A) in relation to both the person by whom the land is being let, and the person who is renting the land.

(7C) An art market participant must also apply customer due diligence measures—

(a)in relation to any trade in a work of art (within the meaning given in regulation 14), when the firm or sole practitioner carries out, or acts in respect of, any such [F12occasional] transaction, [F13whether executed in a single operation or in several operations which appear to be linked,] whose value amounts to [F14£10,000] or more;

(b)in relation to the storage of a work of art (within the meaning given in regulation 14), when it is the operator of a freeport and the value of the works of art so stored for a person, or series of linked persons, amounts to [F15£10,000] or more.

(7D) A cryptoasset exchange provider of the kind who operates a machine which utilises automated processes to exchange cryptoassets for money, or money for cryptoassets, must also apply customer due diligence measures in relation to any such transaction carried out using that machine (and for the purposes of this paragraph “money” and “cryptoasset” have the same meanings as they have in regulation 14A(1)).]

[F16(7E) Without prejudice to paragraph (7D), a cryptoasset exchange provider and a custodian wallet provider must also apply customer due diligence measures in relation to a cryptoasset transfer which is equal to or exceeds the equivalent in cryptoassets of [F17£800 ]in value (taken together with any other cryptoasset transfer which appears to be linked).]

(8) A relevant person must also apply customer due diligence measures—

[F18(za)when the relevant person has any legal duty in the course of the calendar year to contact an existing customer for the purpose of reviewing any information which—

(i)is relevant to the relevant person’s risk assessment for that customer, and

(ii)relates to the beneficial ownership of the customer, including information which enables the relevant person to understand the ownership or control structure of a legal person, trust, foundation or similar arrangement who is the beneficial owner of the customer;

(zb)when the relevant person has to contact an existing customer in order to fulfil any duty under the International Tax Compliance Regulations 2015 M2;]

(a)at other appropriate times to existing customers on a risk based approach;

(b)when the relevant person becomes aware that the circumstances of an existing customer relevant to its risk assessment for that customer have changed.

(9) For the purposes of paragraph (8), in determining when it is appropriate to take customer due diligence measures in relation to existing customers, a relevant person must take into account, among other things—

(a)any indication that the identity of the customer, or of the customer's beneficial owner, has changed;

(b)any transactions which are not reasonably consistent with the relevant person's knowledge of the customer;

(c)any change in the purpose or intended nature of the relevant person's relationship with the customer;

(d)any other matter which might affect the relevant person's assessment of the money laundering or terrorist financing risk in relation to the customer.

[F19(10) In this regulation, “cryptoasset” and “cryptoasset transfer” have the meanings given by regulation 64B (cryptoasset transfers: interpretation).]

Textual Amendments

Marginal Citations

Customer due diligence measuresU.K.

28.—(1) This regulation applies when a relevant person is required by regulation 27 to apply customer due diligence measures.

(2) The relevant person must—

(a)identify the customer unless the identity of that customer is known to, and has been verified by, the relevant person;

(b)verify the customer's identity unless the customer's identity has already been verified by the relevant person; and

(c)assess, and where appropriate obtain information on, the purpose and intended nature of the business relationship or occasional transaction.

(3) Where the customer is a body corporate—

(a)the relevant person must obtain and verify—

(i)the name of the body corporate;

(ii)its company number or other registration number;

(iii)the address of its registered office, and if different, its principal place of business;

(b)subject to paragraph (5), the relevant person must take reasonable measures to determine and verify—

(i)the law to which the body corporate is subject, and its constitution (whether set out in its articles of association or other governing documents);

(ii)the full names of the board of directors (or if there is no board, the members of the equivalent management body) and the senior persons responsible for the operations of the body corporate.

[F20(3A) Where the customer is a legal person, trust, company, foundation or similar legal arrangement the relevant person must take reasonable measures to understand the ownership and control structure of that legal person, trust, company, foundation or similar legal arrangement.]

(4) Subject to paragraph (5), where the customer is beneficially owned by another person, the relevant person must—

(a)identify the beneficial owner;

(b)take reasonable measures to verify the identity of the beneficial owner so that the relevant person is satisfied that it knows who the beneficial owner is; and

(c)if the beneficial owner is a legal person, trust, company, foundation or similar legal arrangement take reasonable measures to understand the ownership and control structure of that legal person, trust, company, foundation or similar legal arrangement.

(5) Paragraphs (3)(b)[F21, (3A)] and (4) do not apply where the customer is a company which is listed on a regulated market.

(6) If the customer is a body corporate, and paragraph (7) applies, the relevant person may treat the senior person in that body corporate responsible for managing it as its beneficial owner.

(7) This paragraph applies if (and only if) the relevant person has exhausted all possible means of identifying the beneficial owner of the body corporate and—

(a)has not succeeded in doing so, or

(b)is not satisfied that the individual identified is in fact the beneficial owner.

[F22(8) If paragraph (7) applies, the relevant person must—

(a)keep records in writing of all the actions it has taken to identify the beneficial owner of the body corporate;

(b)take reasonable measures to verify the identity of the senior person in the body corporate responsible for managing it, and keep records in writing of—

(i)all the actions the relevant person has taken in doing so, and

(ii)any difficulties the relevant person has encountered in doing so.]

[F23(9) Relevant persons do not satisfy their requirements under paragraph (4) by relying solely on information delivered to the registrar under any enactment that requires information to be delivered to the registrar about registrable persons, registrable relevant legal entities or registrable beneficial owners.

(9A) In paragraph (9)—

“registrable beneficial owner” has the meaning given in section 4(5) (application for registration) of, and Schedule 2 (registrable beneficial owners) to, the Economic Crime (Transparency and Enforcement) Act 2022;

“registrable person” has the meaning given in section 790C(4) (key terms) of the Companies Act 2006, including as that definition is applied under any enactment;

“registrable relevant legal entity” has the meaning given in section 790C(8) of the Companies Act 2006, including as that definition is applied under any enactment;

“registrar” means—

(a)

in relation to information delivered to the registrar under Part 1 (registration of overseas entities) of the Economic Crime (Transparency and Enforcement) Act 2022, the registrar of companies for England and Wales;

(b)

in relation to information delivered to the registrar under any other enactment, the registrar referred to in section 1060(3) (the registrar) of the Companies Act 2006.]

(10) Where a person (“A”) purports to act on behalf of the customer, the relevant person must—

(a)verify that A is authorised to act on the customer's behalf;

(b)identify A; and

(c)verify A's identity on the basis of documents or information in either case obtained from a reliable source which is independent of both A and the customer.

(11) The relevant person must conduct ongoing monitoring of a business relationship, including—

(a)scrutiny of transactions undertaken throughout the course of the relationship (including, where necessary, the source of funds) to ensure that the transactions are consistent with the relevant person's knowledge of the customer, the customer's business and risk profile;

(b)undertaking reviews of existing records and keeping the documents or information obtained for the purpose of applying customer due diligence measures up-to-date.

(12) The ways in which a relevant person complies with the requirement to take customer due diligence measures, and the extent of the measures taken—

(a)must reflect—

(i)the risk assessment carried out by the relevant person under regulation 18(1);

(ii)its assessment of the level of risk arising in any particular case;

(b)may differ from case to case.

(13) In assessing the level of risk in a particular case, the relevant person must take account of factors including, among other things—

(a)the purpose of an account, transaction or business relationship;

(b)the level of assets to be deposited by a customer or the size of the transactions undertaken by the customer;

(c)the regularity and duration of the business relationship.

(14) If paragraph (15) applies, a relevant person is not required to continue to apply customer due diligence measures under paragraph (2) or (10) in respect of a customer.

(15) This paragraph applies if all the following conditions are met—

(a)a relevant person has taken customer due diligence measures in relation to a customer;

(b)the relevant person makes a disclosure required by—

(i)Part 3 of the Terrorism Act 2000 M3, or

(ii)Part 7 of the Proceeds of Crime Act 2002 M4; and

(c)continuing to apply customer due diligence measures in relation to that customer would result in the commission of an offence by the relevant person under—

(i)section 21D of the Terrorism Act 2000 (tipping off: regulated sector) M5; or

(ii)section 333A of the Proceeds of Crime Act 2002 (tipping off: regulated sector) M6.

(16) The relevant person must be able to demonstrate to its supervisory authority that the extent of the measures it has taken to satisfy its requirements under this regulation are appropriate in view of the risks of money laundering and terrorist financing, including risks—

(a)identified by the risk assessment carried out by the relevant person under regulation 18(1);

(b)identified by its supervisory authority and in information made available to the relevant person under regulations 17(9) and 47.

(17) Paragraph (16) does not apply to the National Savings Bank or the Director of Savings.

(18) For the purposes of this regulation—

(a)except in paragraph (10), “verify” means verify on the basis of documents or information in either case obtained from a reliable source which is independent of the person whose identity is being verified;

(b)documents issued or made available by an official body are to be regarded as being independent of a person even if they are provided or made available to the relevant person by or on behalf of that person.

[F24(19) For the purposes of this regulation, information may be regarded as obtained from a reliable source which is independent of the person whose identity is being verified where—

(a)it is obtained by means of an electronic identification process, including by using electronic identification means or by using a trust service (within the meanings of those terms in Regulation (EU) No 910/2014 of the European Parliament and of the Council of 23rd July 2014 on electronic identification and trust services for electronic transactions in the internal market M7); and

(b)that process is secure from fraud and misuse and capable of providing [F25assurance that the person claiming a particular identity is in fact the person with that identity, to a degree that is necessary for effectively managing and mitigating any risks of money laundering and terrorist financing].]

Textual Amendments

Marginal Citations

M5Section 21D was inserted by S.I. 2007/3398.

M6Section 333A was inserted by S.I. 2007/3398.

M7OJ L 257, 28.08.2014, p.73.

Additional customer due diligence measures: credit institutions and financial institutionsU.K.

29.—(1) This regulation applies in addition to regulation 28 where a relevant person is a credit institution or a financial institution.

(2) Paragraphs (3) to (5) apply if the relevant person is providing a customer with a contract of long-term insurance (“the insurance policy”).

(3) As soon as the beneficiaries of the insurance policy are identified or designated, the relevant person must—

(a)if the beneficiary is a named person or legal arrangement, take the full name of the person or arrangement; or

(b)if the beneficiaries are designated by specified characteristics, as a class or in any other way, obtain sufficient information about the beneficiaries to satisfy itself that it will be able to establish the identity of the beneficiary before any payment is made under the insurance policy.

(4) The relevant person must verify the identity of the beneficiaries (on the basis of documents or information in either case obtained from a reliable source which is independent of the customer and the beneficiaries, and regulation 28(18)(b) applies for the purpose of determining whether a source satisfies this requirement) before any payment is made under the insurance policy.

(5) When the relevant person becomes aware that all or part of the rights under the insurance policy are being, or have been, assigned to an individual, body corporate, trust or other legal arrangement which is receiving the value or part of the value of the insurance policy for its own benefit ( “ the new beneficiary ”), the relevant person must identify the new beneficiary as soon as possible after becoming aware of the assignment, and in any case before a payment is made under the policy.

(6) The relevant person must not set up [F26an anonymous account, an anonymous passbook or an anonymous safe-deposit box] for any new or existing customer.

(7) The relevant person must apply customer due diligence measures to all anonymous accounts and passbooks in existence on the date on which these Regulations come into force, and in any event before such accounts or passbooks are used in any way.

[F27(7A) The relevant person must apply customer due diligence measures to all anonymous safe-deposit boxes in existence on 10th January 2019, and in any event before such safe-deposit boxes are used in any way.]

(8) A relevant person which—

(a)is an open-ended investment company within the meaning of regulation 2(1) of the Open-Ended Investment Companies Regulations 2001 M8; and

(b)is authorised on or after the date on which these Regulations come into force,

may not issue shares evidenced by a share certificate (or any other documentary evidence) indicating that the holder of the certificate or document is entitled to the shares specified in it.

(9) Paragraph (8) does not apply to an open-ended investment company if—

(a)an application for an authorisation order under regulation 12 of the Open-ended Investment Companies Regulations 2001 was made in relation to that open-ended investment company before the date on which these Regulations come into force; and

(b)that application was not determined until a date on or after the date on which these Regulations come into force.

[F28(10) Paragraphs (11) to (17) apply if the relevant person provides a customer with a new account into which monies are pooled (“pooled account”) on or after the day on which this paragraph comes into force.

(11) When providing a customer with a pooled account, the relevant person must—

(a)take reasonable measures to understand the purpose of the pooled account and how the customer proposes to use it;

(b)take steps to be satisfied that the purpose and proposed use under sub-paragraph (a) is consistent with the relevant person’s knowledge of the customer, the customer’s business and risk profile, and must conduct updated customer due diligence measures where it is not so satisfied; and

(c)once satisfied under sub-paragraph (b), assess the level of risk of money laundering and terrorist financing associated with the customer using the pooled account and take reasonable steps to manage and mitigate the risks arising from that use by the customer.

(12) In making an assessment under paragraph (11)(c), the relevant person must consider, among other things, the appropriateness of imposing controls on the pooled account to manage and mitigate the risks.

(13) The relevant person must be able to demonstrate to its supervisory authority that the extent of the measures it has taken to satisfy the requirements under paragraphs (11) and (12) is appropriate in view of the risks of money laundering and terrorist financing.

(14) When a customer has a pooled account with a relevant person, the customer must make available to the relevant person, on request from the relevant person, information on the identity of the persons on whose behalf monies are held in the pooled account and information on the identity of any beneficial owners of those persons.

(15) A customer which is provided with a pooled account by a relevant person must maintain accurate and up-to-date records in writing of all the monies that are paid into and out of the pooled account for a period of five years beginning, in the case of each payment into or out of the account, on the date on which the customer knows, or has reasonable grounds to believe, that the payment is complete.

(16) A customer of the relevant person must on request by any law enforcement authority provide information about itself and the management and use of any pooled account it has with the relevant person to that law enforcement authority.

(17) A customer is not required under paragraph (13), (14) or (16) to provide information which that person would be entitled to refuse to provide on grounds of legal professional privilege in proceedings in the High Court (or, in Scotland, on the ground of confidentiality of communications in the Court of Session).

(18) A disclosure made under paragraph (13), (14) or (16) is not to be taken to breach a duty of confidentiality owed by a professional legal adviser to a client of the adviser or any other restriction, however imposed, on the disclosure of information.]

Textual Amendments

Marginal Citations

Timing of verificationU.K.

30.—(1) [F29Subject to paragraph (1A), this] regulation applies when a relevant person is required to take any measures under regulation 27, 28 or 29.

[F30(1A) This regulation does not apply to a credit institution in relation to an insolvent bank customer where regulation 30ZA applies.]

(2) Subject to paragraph (3) or (4), a relevant person must comply with the requirement to verify the identity of the customer, any person purporting to act on behalf of the customer and any beneficial owner of the customer before the establishment of a business relationship or the carrying out of the transaction.

(3) Provided that the verification is completed as soon as practicable after contact is first established, the verification of the customer, any person purporting to act on behalf of the customer and the customer's beneficial owner, may be completed during the establishment of a business relationship if—

(a)this is necessary not to interrupt the normal conduct of business; and

(b)there is little risk of money laundering and terrorist financing.

(4) The verification by a credit institution or a financial institution of the identity of a customer opening an account, any person purporting to act on behalf of the customer and any beneficial owner of the customer, may take place after the account has been opened provided that there are adequate safeguards in place to ensure that no transactions are carried out by or on behalf of the customer before verification has been completed.

(5) For the purposes of paragraph (4) “account” includes an account which permits transactions in transferable securities.

(6) Paragraph (7) applies if—

(a)the relevant person is required to apply customer due diligence measures in the case of a trust, a legal entity (other than a body corporate) or a legal arrangement (other than a trust); and

(b)the beneficiaries of that trust, entity or arrangement are designated as a class, or by reference to particular characteristics.

(7) If this paragraph applies, the relevant person must establish and verify the identity of any beneficiary before—

(a)any payment is made to the beneficiary; or

(b)the beneficiary exercises its vested rights in the trust, legal entity or legal arrangement.

[F31(8) In this regulation, “insolvent bank customer” has the meaning given in regulation 30ZA(5).]

Textual Amendments

[F32Insolvent bank customers U.K.

30ZA.—(1) Subject to paragraphs (2) and (3), a credit institution may permit an insolvent bank customer to open an account and transact from it before completing customer due diligence measures.

(2) Before permitting an insolvent bank customer to open an account and transact from it under paragraph (1), the credit institution must—

(a)identify the customer in accordance with regulation 28(2)(a); and

(b)where applicable, identify a person purporting to act on the customer’s behalf and verify that such person is authorised so to act in accordance with regulation 28(10)(a) and (b).

(3) After permitting an insolvent bank customer to open an account and transact from it under paragraph (1), the credit institution must—

(a)apply the other customer due diligence measures required by regulation 28 as soon as practicable; and

(b)if it becomes apparent that any of the situations or cases set out in regulation 33(1) apply, carry out no further transactions from the insolvent bank customer’s account until it has completed the customer due diligence measures required by regulation 28, with the exception of regulation 28(11).

(4) For the purposes of this regulation, a credit institution is to be treated as identifying an insolvent bank customer that is a body corporate if the credit institution—

(a)obtains the information listed in regulation 28(3)(a); and

(b)where the insolvent bank customer is not a company which is listed on a regulated market—

(i)takes reasonable measures to determine the information listed in regulation 28(3)(b); and

(ii)identifies the beneficial owner where the customer is beneficially owned by another person.

(5) In this regulation—

“insolvency date” in respect of an insolvent bank means the date on which a bank insolvency order is made in relation to the bank under section 94 (the order) of the Banking Act 2009.

“insolvent bank” means either—

(a)

a bank as defined in section 2 (interpretation: “bank”) of the Banking Act 2009 that has entered into the procedure in Part 2 of that Act; or

(b)

a building society as defined in section 119 (interpretation) of the Building Societies Act 1986 that has entered into the procedure in Part 2 of the Banking Act 2009, as applied and modified by section 90C (application of bank insolvency and administration legislation to building societies) of the Building Societies Act 1986;

“insolvent bank customer” means any customer—

(a)

which the credit institution is reasonably satisfied was a customer of an insolvent bank at the insolvency date in respect of that insolvent bank; and

(b)

with whom the credit institution begins to establish a business relationship within the period of 30 days beginning with the insolvency date in respect of that insolvent bank.]

Textual Amendments

[F33Requirement to report discrepancies in registersU.K.

30A.—(1) [F34Subject to paragraph (8A), before] establishing a business relationship with—

(a)a company which is subject to the requirements of Part 21A of the Companies Act 2006 (information about people with significant control);

(b)an unregistered company which is subject to the requirements of the Unregistered Companies Regulations 2009;

(c)a limited liability partnership which is subject to the requirements of the Limited Liability Partnerships (Application of Companies Act 2006) Regulations 2009;

(d)an eligible Scottish partnership which is subject to the requirements of the Scottish Partnerships (Register of People with Significant Control) Regulations 2017, F35...

(e)a trust which is subject to registration under Part 5 of these Regulations, [F36or]

[F37(f)an overseas entity which is subject to registration under Part 1 of the Economic Crime (Transparency and Enforcement) Act 2022,]

[F38a relevant person must collect an excerpt of the register which contains full details of any information specified in paragraph (1A) held on the register at the relevant time before the business relationship is established, or must establish from its inspection of the register that there is no such information held on the register at that time.]

[F39(1A) The information specified in this paragraph is as follows—

(a)in relation to a firm of a type described in paragraphs (1)(a) to (e), information relating to beneficial owners of the customer; and

(b)in relation to an overseas entity of a type described in paragraph (1)(f), required information relating to registrable beneficial owners specified under Schedule 1 to the Economic Crime (Transparency and Enforcement) Act 2022.]

(2) The relevant person must report to the person mentioned in paragraph (3) [F40any material discrepancy] the relevant person finds between information relating to the beneficial ownership of the customer—

(a)which the relevant person collects under paragraph (1), and

(b)which otherwise becomes available to the relevant person in the course of carrying out its duties under these Regulations when establishing a business relationship with the customer.

[F41(2A) When taking measures to fulfil the duties to carry out customer due diligence and ongoing monitoring of a business relationship (including enhanced customer due diligence and enhanced ongoing monitoring) under Part 3 of these Regulations after a business relationship with a customer of a type described in paragraph (1)(a) to (f) has been established, a relevant person must also collect an excerpt of the register which contains full details of any information specified in paragraph (1A) which is held on the register at that time, or must establish from its inspection of the register that there is no such information held on the register at that time.

(2B) The relevant person must report to the person mentioned in paragraph (3) any material discrepancy the relevant person finds between information relating to the beneficial ownership of the customer—

(a)which the relevant person collects under paragraph (2A), and

(b)which otherwise becomes available to the relevant person in the course of carrying out its duties under these Regulations.]

[F42(3) A material discrepancy referred to in paragraphs (2) and (2B) must be reported—

(a)if it relates to a firm of a type described in paragraph (1)(a) to (d), to the registrar referred to in section 1060(3) of the Companies Act 2006;

(b)if it relates to a trust of a type described in paragraph (1)(e), to the Commissioners;

(c)if it relates to an overseas entity of a type described in paragraph (1)(f), to the registrar of companies for England and Wales.]

(4) The relevant person is not required under paragraph (2) [F43or (2B)] to report information which that person would be entitled to refuse to provide on grounds of legal professional privilege in the High Court (or in Scotland, on the ground of confidentiality of communications in the Court of Session).

(5) The person to whom [F44a material discrepancy] is reported must take such action as that person considers appropriate to investigate and, if necessary, resolve the discrepancy in a timely manner.

[F45(6) A discrepancy which is reported to the registrar under paragraph (3) is material excluded from public inspection for the purposes of—

(a)section 1087 of the Companies Act 2006 (material not available for public inspection), including for the purposes of that section as applied—

(i)to unregistered companies by paragraph 20 of Schedule 1 to the Unregistered Companies Regulations 2009;

(ii)to limited liability partnerships by regulation 66 of the Limited Liability Partnerships (Application of Companies Act 2006) Regulations 2009; and

(iii)to eligible Scottish partnerships by regulation 61 of the Scottish Partnerships (Register of People with Significant Control) Regulations 2017; and

(b)section 22 of the Economic Crime (Transparency and Enforcement) Act 2022 (material unavailable for inspection).]

F46(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F47(8) In this regulation, a “material discrepancy” is one described in Schedule 3AZA.]

[F48(8A) In relation to an insolvent bank customer of a type described in any of sub-paragraphs (a) to (f) of paragraph (1), a credit institution may comply with the requirement in paragraph (1) after the establishment of a business relationship with that customer.

(8B) In this regulation, “insolvent bank customer” has the meaning given in regulation 30ZA(5).]

[F49(9) In this regulation “the register” means—

(a)in relation to a customer which is of the type described in paragraph (1)(a), the register within the meaning of section 1080(2) of the Companies Act 2006;

(b)in relation to a customer which is a firm of a type described in paragraph (1)(b) to (d), the records of information mentioned in section 1080(1)(a) of the Companies Act 2006 relating to such firm;

(c)in relation to a customer which is an overseas entity of a type described in paragraph (1)(f), the register referred to in section 3(1) of the Economic Crime (Transparency and Enforcement) Act 2022.]]

Textual Amendments

Requirement to cease transactions etcU.K.

31.—(1) Where, in relation to any customer, a relevant person is unable to apply customer due diligence measures as required by regulation 28, that person—

(a)must not carry out any transaction through a bank account with the customer or on behalf of the customer;

(b)must not establish a business relationship or carry out a transaction with the customer otherwise than through a bank account;

(c)must terminate any existing business relationship with the customer;

(d)must consider whether the relevant person is required to make a disclosure (or to make further disclosure) by—

(i)Part 3 of the Terrorism Act 2000 M9; or

(ii)Part 7 of the Proceeds of Crime Act 2002 M10.

(2) Paragraph (1)(a) does not prevent money deposited in an account being repaid to the person who deposited it, provided that, in any case where a disclosure is required by the legislation referred in paragraph (1)(d), the relevant person has—

(a)consent (within the meaning of section 21ZA of the Terrorism Act 2000 (arrangements with prior consent)) M11 to the transaction, or

(b)the appropriate consent (within the meaning of section 335 of the Proceeds of Crime Act 2002 (appropriate consent)) to the transaction.

(3) Paragraph (1) does not apply where an independent legal professional or other professional adviser is in the course of ascertaining the legal position for a client or performing the task of defending or representing that client in, or concerning, legal proceedings, including giving advice on the institution or avoidance of proceedings.

(4) In paragraph (3), “other professional adviser” means an auditor, external accountant or tax adviser who is a member of a professional body which is established for any such persons and which makes provision for—

(a)testing the competence of those seeking admission to membership of such a body as a condition for such admission; and

(b)imposing and maintaining professional and ethical standards for its members, as well as imposing sanctions for non-compliance with those standards.

(5) Paragraph (1)(a) to (c) does not apply where an insolvency practitioner has been appointed by the court as administrator or liquidator of a company, provided that—

(a)the insolvency practitioner has taken all reasonable steps to satisfy the requirements set out in regulation 28(2) and (10), and

(b)the resignation of the insolvency practitioner would be prejudicial to the interests of the creditors of the company.

Marginal Citations

M11Section 21ZA was inserted by S.I. 2007/3398.

Exception for trustees of debt issuesU.K.

32.—(1) A relevant person—

(a)who is appointed by the issuer of instruments or securities specified in paragraph (2) as trustee of an issue of such instruments or securities; or

(b)whose customer is a trustee of an issue of such instruments or securities,

is not required to apply the customer due diligence measure referred to in regulation 28(3) and (4) in respect of the holders of such instruments or securities.

(2) The specified instruments and securities are—

(a)instruments which fall within article 77 or 77A of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 M12; and

(b)securities which fall within article 78 of that Order M13.

Marginal Citations

M12S.I. 2001/544. Article 77 was amended by S.I. 2010/86, 2011/133. Article 77A was inserted by S.I. 2010/86 and amended by S.I. 2011/133.

M13Article 78 was amended by S.I. 2010/86.

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