Oct 13 2009 Martin Coyle
HM Treasury has released further details of its planned review of the Money Laundering Regulations 2007, which was announced last month. The call for evidence has been split into two parts, the first aimed at regulated firms and supervisors, and the second at the customers of regulated firms, which includes business customers and private individual customers. The aim is to gauge the effectiveness and proportionality of the regulations and to improve them, where necessary.
The part (PDF) aimed at firms and regulators poses a number of questions. The first section deals with the regulations, their risk-based approach, customer due diligence requirements and recordkeeping policies and procedures. It also asks whether the sanctions for non-compliance with the regulations represent effective deterrence. The next section looks at the guidance associated with the legislation and looks at whether it is clear and consistent. The section also queries how guidance assists a risk-based implementation of customer due diligence measures within sectors and whether it assists firms with their anti-money laundering duties. The call for evidence also deals with supervision and whether regulators adopt a consistent approach. The section on industry practice assesses whether firms face barriers in implementing risk-based policies. It also looks at whether "fit and proper" tests are conducted effectively and proportionately. The next section looks at customer identification and whether more flexibility might be needed. The final part deals with the overall effectiveness of the UK's anti-money laundering regime.
The second part (PDF) of the review is less detailed than the first part but again poses a number of questions to respondents. The questions are as follows:
• How satisfactory is your experience in situations where you believe you have come into contact with the regulations?
• How easy is it to provide acceptable forms of identification to the businesses you deal with?
• How often and in what contexts have you been asked to provide repeat information to businesses with which you have an ongoing relationship?
• If you have had to provide information to establish beneficial ownership, how straightforward was that process?
• How does your customer experience compare across different sectors, between different sized firms and internationally?
• How easy do you find it to check what information is needed from you and is it clear to you why the information is needed?
• Overall, based on what you understand about why the regulations exist, and the kinds of procedures regulated firms have in place, do you feel that the burdens they impose on you are reasonable?
The Treasury said that it would produce feedback on the answers it receives next year and said it would also hold a number of "stakeholder" events in London, Birmingham, Edinburgh, and Belfast in the autumn.
The call for evidence has a deadline of December 11.
