Apr 14 2009 Martin Coyle
The Joint Money Laundering Steering Group is set to review its guidance to make it more accessible to users but has stressed that there will not be a radical revision of the handbook. The JMLSG last conducted a major revision of its guidance in 2006 to take account of the new risk-based approach to anti-money laundering. Changes were also made the following year to take account of the Money Laundering Regulations 2007.
David Swanney, JMLSG secretary, who spoke at the recent Anti-Money Laundering Professionals Forum event, said that the review would take place this year and any revised guidance would be formalised at the end of this year or the start of next. He said that the industry would be issued with a consultation paper at the end of the summer which sets out any proposals.
"Every two years we look at the guidance and take the collective views from trade bodies about what needs to be done. We are not looking to make substantial changes unless there is a need for it. We are looking to make the guidance more user friendly," he said.
Swanney said that the JMLSG would look at the structure of part one of the guidance and "tidy it up". The body would also look at the content and scope of the part two sectoral guidance. There was also likely to be additional material on proliferation added, he told delegates. Swanney added that the JMLSG would also take a look at the balance between guidance on obligations and "best practice".
Turning to current issues the audience heard that money laundering reporting officers often asked the JMLSG why there was not an "equivalence" list that they could rely on as well as a politically exposed persons list. Both were tricky issues, Swanney said. Firms needed to be quite proportionate and pragmatic in their dealings with PEPs, he said.
Swanney told the audience that as JMLSG secretary he received plenty of queries from people who were concerned about the way that front line staff in banks or financial institutions asked customers detailed questions, blaming the intrusions on the Money Laundering Regulations. Customers were not happy with this, Swanney said.
"They are not explaining to people why are they are asking these questions and telling them it is the way things are done," he said.
Swanney said that apart from its work on the guidance the JMLSG would this year look at bedding down the requirements of the 2007 Money Laundering Regulations. There would also be a focus on sanctions and terrorism work, as well as proliferation. He said that he recognised that the industry needed some "respite" from new legislation.
