HM Treasury consults on proposals for new anti-money laundering and counter-terrorist financing measures

Scottish solicitors are being encouraged to respond to two HM Treasury consultations on proposals to strengthen the UK’s anti-money laundering and counter-terrorist finance (AML/CTF) regime.

The UK Government is consulting on draft Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017. The Money Laundering Regulations 2017 consultation closes on 12 April at 11.45pm. The consultation and draft regulations can be found here.

The new regulations aim to implement the requirements of the EU Fourth Money Laundering Directive and Financial Action Task Force standards. They have also been influenced by the findings of the National Risk Assessment 2015. The draft regulations will impact on both firms and supervisors through the introduction of more prescriptive requirements about how supervisors carry out the AML/CTF regulation of their members. The introduction of new or changed regulations will also have an impact, for example, through the requirement for firms to carry out a risk assessment.

Following the National Risk Assessment, and an earlier consultation, the UK Government has decided to create a new body to oversee the work of UK AML supervisors, including the Law Society of Scotland.

We are responding to a UK Government call for information on the powers and mandate for the new supervisory body, the Office for Professional Body AML Supervision (OPBAS), which will be responsible for working with all supervisors to ensure consistently high standards of AML supervision.

The new supervisory body is to be housed in the Financial Conduct Authority and is set to be funded through a new fee on 23 professional body AML supervisors, including the Society. The legislation establishing OPBAS is expected by the end of 2017. The body should be operational by the start of 2018.

The consultation, which is available on the HM Treasury website, closes on 26 April at 11.45pm.

We are encouraging our members to respond to both consultations to ensure that their views are considered. We will publish our responses once submitted. If you have any queries, please contact fincomp@lawscot.org.uk.