The Money Laundering and Terrorist Financing (High-Risk Countries) (Amendment) (No. 2) Regulations 2023

Statutory Instruments

2023 No. 1306

Financial Services

The Money Laundering and Terrorist Financing (High-Risk Countries) (Amendment) (No. 2) Regulations 2023

Approved by both Houses of Parliament

Made

at 11.30 a.m. on 4th December 2023

Laid before Parliament

at 3.30 p.m. on 4th December 2023

Coming into force

5th December 2023

The Treasury make these Regulations in exercise of the powers conferred by section 49 of, and paragraphs 4 and 23 of Schedule 2 to, the Sanctions and Anti-Money Laundering Act 2018(1).

Citation, commencement and extent

1.—(1) These Regulations may be cited as the Money Laundering and Terrorist Financing (High-Risk Countries) (Amendment) (No. 2) Regulations 2023.

(2) These Regulations come into force on 5th December 2023.

(3) These Regulations extend to England and Wales, Scotland and Northern Ireland.

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

2.—(1) The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017(2) are amended as follows.

(2) For Schedule 3ZA (high-risk third countries) substitute—

Regulation 33(3)

“SCHEDULE 3ZA High-Risk Third Countries

1.   Barbados

2.   Bulgaria

3.   Burkina Faso

4.   Cameroon

5.   Croatia

6.   Democratic People’s Republic of Korea

7.   Democratic Republic of the Congo

8.   Gibraltar

9.   Haiti

10.   Iran

11.   Jamaica

12.   Mali

13.   Mozambique

14.   Myanmar

15.   Nigeria

16.   Philippines

17.   Senegal

18.   South Africa

19.   South Sudan

20.   Syria

21.   Tanzania

22.   Turkey

23.   Uganda

24.   United Arab Emirates

25.   Vietnam

26.   Yemen.”

Scott Mann

Stuart Anderson

Two of the Lords Commissioners of His Majesty’s Treasury

At 11.30 a.m. on 4th December 2023

EXPLANATORY NOTE

(This note is not part of the Regulations)

These Regulations amend the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (S.I. 2017/692) (“the MLRs”) by substituting the list of high-risk third countries in Schedule 3ZA for a new list. Schedule 3ZA was originally inserted into the MLRs by the Money Laundering and Terrorist Financing (Amendment) (High-Risk Countries) Regulations 2021 (S.I. 2021/392) and was subsequently amended by the following instruments:

• the Money Laundering and Terrorist Financing (Amendment) (No. 2) (High-Risk Countries) Regulations 2021 (S.I. 2021/827);

• the Money Laundering and Terrorist Financing (Amendment) (No. 3) (High-Risk Countries) Regulations 2021 (S.I. 2021/1218);

• the Money Laundering and Terrorist Financing (High-Risk Countries) (Amendment) Regulations 2022 (S.I. 2022/393);

• the Money Laundering and Terrorist Financing (High-Risk Countries) (Amendment) (No. 2) Regulations 2022 (S.I. 2022/782);

• the Money Laundering and Terrorist Financing (High-Risk Countries) (Amendment) (No. 3) Regulations 2022 (S.I. 2022/1183); and

• the Money Laundering and Terrorist Financing (High-Risk Countries) (Amendment) Regulations 2023 (S.I. 2023/704).

Albania, Cayman Islands, Jordan and Panama are no longer classed as high-risk third countries for the purposes of enhanced customer due diligence requirements in regulation 33(1) of the MLRs.

Bulgaria, Cameroon, Croatia, Nigeria, South Africa and Vietnam are now classed as high-risk third countries for the purposes of enhanced customer due diligence requirements in regulation 33(1) of the MLRs.

A full impact assessment of the costs and savings that this instrument will have for business and the public will be published with an Explanatory Memorandum alongside the instrument on www.legislation.gov.uk.

(1)

2018 c. 13. In section 49 the definition of “terrorist financing” was amended by paragraph 9 of Part 2 of Schedule 3 to the Sanctions and Anti-Money Laundering Act 2018. There are amending instruments to the 2018 Act but none is relevant. See the definition of ‘appropriate Minister’ in section 1(9) of the 2018 Act.

(2)

S.I. 2017/692, amended by S.I. 2019/253, 2019/1511, 2020/991, 2021/392, 2021/827, 2021/1218, 2022/393, 2022/782, 2022/1183 and 2023/704. There are other amending instruments but none is relevant.