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The UK Money Laundering Regulations 2007 |
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David Glass of London based Pritchard Englefield law firm reviews some
practical aspects of the much debated UK Money Laundering Regulations
2007 enacted on the 24th July 2007.
The UK Money Laundering Regulations 2007 (“the 2007 Regulations”) will come into force on 15th December 2007.
The 2007 Regulations impose stricter requirements than before for
identifying the true beneficial owner of trusts and company shares but
at the same time create more focus in permitting “simplified customer
due diligence procedures” in low risk activities whilst requiring
“enhanced customer due diligence and on-going monitoring” in higher
risk areas of activity. The U.K. Financial Services sector as well
various other professional groups (including accountants and lawyers in
many cases), estate agents, trust and company service providers and
consumer credit businesses will all be regulated by the 2007
Regulations.
“Beneficial owners” of trusts and companies include those persons who
have more than a 25% interest in such trusts and companies but the
meaning of “beneficial owner” is wider than that and may give rise to
some difficulties of interpretation.
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The UK has some of the tightest anti-money laundering and terrorist
financing controls in the World, though the reasons for that are
understandable. There has been considerable concern, however, that the
undoubted need for tight control will adversely impinge upon the
ability of the UK – and in particular its golden heart, the City of
London – to undertake its activities effectively as a world class
centre for financial services and similar activities. The purpose of
the 2007 Regulations is to focus more clearly on what is required to be
done for compliance purposes by adopting a much more targeted approach
than before.
We shall soon see whether the new approach works in practice!
© August 2007 David Glass
All Rights Reserved.
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