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

1. Introductory Text

2. PART 1 Introduction

   1. 1. Citation and commencement

   2. 2. Prescribed regulations

   3. 3. General interpretation

   4. 4. Meaning of business relationship

   5. 5. Meaning of beneficial owner: bodies corporate or partnership

   6. 6. Meaning of beneficial owner: trusts, similar arrangements and others

   7. 7. Supervisory authorities

3. PART 2 Money Laundering and Terrorist Financing

   1. CHAPTER 1 Application

      1. 8. Application

      2. 9. Carrying on business in the United Kingdom

      3. 10. Credit institutions and financial institutions

      4. 11. Auditors and others

      5. 12. Independent legal professionals and trust or company service providers

      6. 13. Estate agents and letting agents

      7. 14. High value dealers, casinos, auction platforms and art market participants

      8. 14A. Cryptoasset exchange providers and custodian wallet providers

      9. 15. Exclusions

   2. CHAPTER 2 Risk assessment and controls

      1. 16. Risk assessment by the Treasury and Home Office

      2. 16A. Risk assessment by the Treasury

      3. 17. Risk assessment by supervisory authorities

      4. 18. Risk assessment by relevant persons

      5. 18A. Risk assessment by relevant persons in relation to proliferation financing

      6. 19. Policies, controls and procedures

      7. 19A. Policies, controls and procedures in relation to proliferation financing

      8. 20. Policies, controls and procedures: group level

      9. 21. Internal controls

      10. 22. Central contact points: electronic money issuers and payment service providers

      11. 23. Requirement on authorised person to inform the FCA

      12. 24. Training

      13. 25. Supervisory action

   3. CHAPTER 3 Ownership and Management Restrictions

      1. 26. Prohibitions and approvals

4. PART 3 Customer Due Diligence

   1. CHAPTER 1 Customer due diligence: general

      1. 27. Customer due diligence

      2. 28. Customer due diligence measures

      3. 29. Additional customer due diligence measures: credit institutions and financial institutions

      4. 30. Timing of verification

      5. 30A. Requirement to report discrepancies in registers

      6. 31. Requirement to cease transactions etc

      7. 32. Exception for trustees of debt issues

   2. CHAPTER 2 Enhanced customer due diligence

      1. 33. Obligation to apply enhanced customer due diligence

      2. 34. Enhanced customer due diligence: credit institutions, financial institutions and correspondent relationships

      3. 35. Enhanced customer due diligence: politically exposed persons

      4. 36. Politically exposed persons: other duties

   3. CHAPTER 3 Simplified customer due diligence

      1. 37. Application of simplified customer due diligence

      2. 38. Electronic money

5. PART 4 Reliance and Record-keeping

   1. 39. Reliance

   2. 40. Record-keeping

   3. 41. Data Protection

6. PART 5 Beneficial Ownership Information

   1. 42. Application of this Part

   2. 43. Corporate bodies: obligations

   3. 44. Trustee obligations

   4. 45. Register of beneficial ownership

   5. 45ZA. Register of beneficial ownership: additional types of trust

   6. 45ZB. Access to information on the register

7. PART 5A Requests for information about accounts and safe-deposit boxes

   1. 45A. Duty to establish mechanism for requests

   2. 45B. Duty to respond to requests for information

   3. 45C. Requests for information about accounts

   4. 45D. Requests for information about safe-deposit boxes

   5. 45E. Requirements for making a request for information

   6. 45F. Access to requests and responses, guidance and review

   7. 45G. Record keeping

   8. 45H. Interpretation

8. PART 6 Money Laundering and Terrorist Financing: Supervision and Registration

   1. CHAPTER 1 Duties of supervisory authorities

      1. 46. Duties of supervisory authorities

      2. 46A. Annual reports by self-regulatory organisations

      3. 47. Duties of supervisory authorities: information

      4. 48. Duties of the FCA: guidance on politically exposed persons

      5. 49. Duties of self-regulatory organisations

      6. 50. Duty to co-operate

      7. 51. Regulatory information

      8. 52. Disclosure by supervisory authorities and other relevant authorities

      9. 52A. Obligation of confidentiality

      10. 52B. Obligation of confidentiality: offence

   2. CHAPTER 2 Registration

      1. 53. Interpretation

      2. 54. Duty to maintain registers of certain relevant persons

      3. 55. Power to maintain registers

      4. 56. Requirement to be registered

      5. 56A. Transitional provision for existing cryptoasset businesses: requirement to register

      6. 57. Applications for registration in a register maintained under regulation 54 or 55

      7. 58. Fit and proper test

      8. 58A. Fit and proper test: cryptoasset businesses

      9. 59. Determination of applications for registration under regulations 54 and 55

      10. 60. Cancellation and suspension of registration in a register under regulation 54 or 55

   3. CHAPTER 3 Disclosure obligation

      1. 60A. Disclosure by cryptoasset businesses

      2. 60B. Changes in control of registered cryptoasset businesses

9. PART 7 Transfer of Funds (Information on the Payer) Regulations

   1. 61. Interpretation

   2. 62. Transfer of funds supervisory authorities

   3. 63. Duties of transfer of funds supervisory authorities

   4. 64. Obligations of payment service providers

10. PART 7A Cryptoasset Transfers

    1. Chapter 1 Application and interpretation

       1. 64A. Application of this Part

       2. 64B. Interpretation

    2. Chapter 2 Inter-cryptoasset business transfers

       1. 64C. Information accompanying an inter-cryptoasset business transfer

       2. 64D. Missing or non-corresponding information: the cryptoasset business of a beneficiary

       3. 64E. Missing information: intermediaries

       4. 64F. Retention of information with an inter-cryptoasset business transfer: intermediaries

    3. Chapter 3 Unhosted wallet transfers

       1. 64G. Requesting information: unhosted wallet transfers and cryptoasset businesses

    4. Chapter 4 Provision of information to law enforcement authorities

       1. 64H. Provision of information

11. PART 8 Information, Investigation and Directions

    1. 65. Interpretation

    2. 66. Power to require information

    3. 67. Requests in support of other authorities

    4. 68. Requests to other authorities

    5. 69. Entry, inspection of premises without a warrant etc

    6. 70. Entry of premises under warrant

    7. 71. Retention of documents taken under regulation 66 or 70

    8. 72. Provision of information and warrants: safeguards

    9. 73. Admissibility of statements

    10. 74. Powers of relevant officers

    11. 74A. Reporting requirements: cryptoasset businesses

    12. 74B. Report by a skilled person: cryptoasset businesses

    13. 74C. Directions: cryptoasset businesses

12. PART 9 Enforcement

    1. CHAPTER 1 General

       1. 75. Meaning of “relevant requirement”

    2. CHAPTER 2 Civil penalties and notices

       1. 76. Power to impose civil penalties: fines and statements

       2. 77. Power to impose civil penalties: suspension and removal of authorisation

       3. 78. Power to impose civil penalties: prohibitions on management

       4. 79. Imposition of civil penalties

       5. 80. Injunctions

       6. 81. The FCA: disciplinary measures (procedure)

       7. 82. The FCA: procedure (general)

       8. 83. The Commissioners: disciplinary measures (procedure)

       9. 84. Publication: the FCA

       10. 85. Publication: the Commissioners

    3. CHAPTER 3 Criminal offences, penalties and proceedings etc.

       1. 86. Criminal offence

       2. 87. Offences of prejudicing investigations

       3. 88. Information offences

       4. 89. Proceedings: general

       5. 90. Proceedings: jurisdiction

       6. 91. Proceedings: partnership or unincorporated association

       7. 92. Offence by bodies corporate, partnership or unincorporated association

13. PART 10 Appeals

    1. CHAPTER 1 Decisions of the FCA

       1. 93. Appeals against decisions of the FCA

    2. CHAPTER 2 Decisions of the Commissioners

       1. 94. Offer of review

       2. 95. Review by the Commissioners

       3. 96. Extensions of time

       4. 97. Review out of time

       5. 98. Nature of review etc

       6. 99. Appeals against decisions of the Commissioners

       7. 100. Appeals against decisions of the Commissioners: procedure

14. PART 11 Miscellaneous Provisions

    1. 101. Recovery of charges and penalties through the court

    2. 102. Costs of supervision

    3. 103. Obligations on public authorities

    4. 104. Suspicious activity disclosures

    5. 104A. The United Kingdom’s financial intelligence unit

    6. 105. Disclosure by the Commissioners

    7. 106. General restrictions

    8. 107. Transfers between the United Kingdom and the Channel Islands and the Isle of Man

    9. 108. Review

    10. 109. Consequential amendments

    11. 110. Revocation and saving provisions

15. Signature

16. SCHEDULES

    1. SCHEDULE 1

       Professional Bodies

       1. 1. Association of Accounting Technicians

       2. 2. Association of Chartered Certified Accountants

       3. 3. Association of International Accountants

       4. 4. Association of Taxation Technicians

       5. 5. Chartered Institute of Legal Executives

       6. 6. Chartered Institute of Management Accountants

       7. 7. Chartered Institute of Taxation

       8. 8. Council for Licensed Conveyancers

       9. 9. Faculty of Advocates

       10. 10. Faculty Office of the Archbishop of Canterbury

       11. 11. General Council of the Bar

       12. 12. General Council of the Bar of Northern Ireland

       13. 13. Insolvency Practitioners Association

       14. 14. Institute of Certified Bookkeepers

       15. 15. Institute of Chartered Accountants in England and Wales

       16. 16. Institute of Chartered Accountants in Ireland

       17. 17. Institute of Chartered Accountants of Scotland

       18. 18. Institute of Financial Accountants

       19. 19. International Association of Bookkeepers

       20. 20. Law Society

       21. 21. Law Society of Northern Ireland

       22. 22. Law Society of Scotland

    2. SCHEDULE 2

       Listed Activities

       1. The activities ... are— Lending including, inter alia: consumer credit, credit agreements relating to...

    3. SCHEDULE 3

       Relevant Offences

       1. 1. An offence under the Perjury Act 1911 .

       2. 2. An offence under section 89 of the Criminal Justice Act...

       3. 3. An offence under section 20BB of the Taxes Management Act...

       4. 4. An offence under section 11 of the European Communities Act...

       5. 5. An offence under Article 10 of the Perjury (Northern Ireland)...

       6. 6. An offence under the Customs and Excise Management Act 1979...

       7. 7. An offence under the Estate Agency Act 1979, or specified...

       8. 8. An offence under any of sections 1 to 5 of...

       9. 9. An offence under section 35 of the Administration of Justice...

       10. 10. An offence under section 11(1) (undischarged bankrupts) or 13 (criminal...

       11. 11. An offence under section 1, 2, 3, 3ZA or 3A...

       12. 12. An offence under section 112 (false representations or obtaining benefit)...

       13. 13. An offence under section 52 of the Criminal Justice Act...

       14. 14. An offence under the Value Added Tax Act 1994 ....

       15. 15. An offence under section 44(2) of the Criminal Law (Consolidation)...

       16. 16. An offence under the Data Protection Act 1998 .

       17. 17. An offence under the Terrorism Act 2000 .

       18. 18. An offence under paragraph 7(2) or (3) of Schedule 3...

       19. 19. An offence under the Money Laundering Regulations 2001 , the...

       20. 20. An offence under section 35 of the Tax Credits Act...

       21. 21. An offence under Part 7 (money laundering) or Part 8...

       22. 22. An offence under the Commissioners for Revenue and Customs Act...

       23. 23. An offence under the Terrorism Act 2006 .

       24. 24. An offence under section 1, 2, 6 or 7 of...

       25. 25. An offence under section 45 of the Serious Crime Act...

       26. 26. An offence under Parts 1 (general privacy protections); 2 (lawful...

       27. 27. An offence under section 45 (failure to prevent facilitation of...

       28. 27A. An offence under the Data Protection Act 2018, apart from...

       29. 28. An offence of cheating the public revenue.

       30. 29. An offence under the law of any part of the...

       31. 30. Any offence which has deception or dishonesty as one of...

       32. 31. The common law offences of conspiracy to defraud and perverting...

       33. 32. An offence of attempting, conspiring or inciting the commission of...

       34. 33. An offence under section 44 of the Serious Crime Act...

       35. 34. An offence of aiding, abetting, counselling or procuring the commission...

       36. 35. An act which— (a) constituted an offence under the law...

    4. SCHEDULE 3AZA

       Material Discrepancies

    5. SCHEDULE 3ZA

       High-Risk Third Countries

       1. 1. Barbados

       2. 2. Bulgaria

       3. 3. Burkina Faso

       4. 4. Cameroon

       5. 5. Croatia

       6. 6. Democratic People’s Republic of Korea

       7. 7. Democratic Republic of the Congo

       8. 8. Gibraltar

       9. 9. Haiti

       10. 10. Iran

       11. 11. Jamaica

       12. 12. Mali

       13. 13. Mozambique

       14. 14. Myanmar

       15. 15. Nigeria

       16. 16. Philippines

       17. 17. Senegal

       18. 18. South Africa

       19. 19. South Sudan

       20. 20. Syria

       21. 21. Tanzania

       22. 22. Turkey

       23. 23. Uganda

       24. 24. United Arab Emirates

       25. 25. Vietnam

       26. 26. Yemen.

    6. SCHEDULE 3A

       Excluded Trusts

       1. 1. Legislative Trusts

       2. 2. Trusts imposed by court order

       3. 3. Pension scheme trusts

       4. 4. Trusts of insurance policies

       5. 5. Charitable trusts

       6. 6. Pilot trusts

       7. 6A. Bank accounts for minors etc

       8. 7. Trusts having effect on death

       9. 8. A trust where— (a) the trust is holding only benefits...

       10. 9. Co-ownership

       11. 10. Financial markets infrastructure

       12. 11. Professional services

       13. 12. Client money etc.

       14. 13. Capital markets etc.

       15. 14. Commercial transactions

       16. 15. Registration of assets

       17. 16. Trusts meeting legislative requirements

       18. 17. A trust of property in respect of which a direction...

       19. 18. A trust of funds derived from a payment—

       20. 19. A trust holding tenants’ contributions for the purposes of section...

       21. 20. The plan trust of a share incentive plan which meets...

       22. 21. A trust created under a share option scheme that meets...

       23. 22. A trust holding property for a beneficiary who is a...

       24. 23. Public authorities

       25. 24. Interpretation

    7. SCHEDULE 4

       Supervisory Information

       1. 1. The number of persons subject to the supervision of the...

       2. 2. The number of supervised persons who are individuals.

       3. 3. In the case of a self-regulatory organisation, the number of...

       4. 4. In the case of a self-regulatory organisation, the number of...

       5. 5. The services provided by supervised persons.

       6. 6. The number of firms subject to the supervision of the...

       7. 7. The number of applications for approval received by the supervisory...

       8. 8. The number of approvals under regulation 26 which were not...

       9. 9. In the case of a self-regulatory organisation, the number, amount...

       10. 10. The number of times the supervisory authority has—

       11. 11. The number of times the supervisory authority has exercised any...

       12. 12. The number of contraventions of these Regulations committed by supervised...

       13. 12A. The number of contraventions of these Regulations identified upon exercise...

       14. 13. The number and amount of penalties or charges which have...

       15. 14. The number of times the supervisory authority has exercised the...

       16. 15. The number of times the supervisory authority or any of...

       17. 15A. A copy of any suspicious activity disclosure (within the meaning...

       18. 16. The number of supervised persons who have contravened requirements imposed...

       19. 17. Information on the money laundering and terrorist financing practices that...

       20. 18. Indications that the supervisory authority considers to suggest that a...

       21. 19. The amount of human resource allocated by the supervisory authority...

    8. SCHEDULE 5

       Connected Persons

       1. 1. Corporate Bodies

       2. 2. Partnerships

       3. 3. Unincorporated Associations

       4. 4. Individuals

    9. SCHEDULE 6

       Meaning of “relevant requirement”

       1. 1. For the purposes of Part 9 of these Regulations, “relevant...

       2. 2. The requirements specified in this paragraph are those imposed in—...

       3. 3. The requirements specified in this paragraph are those imposed in—...

       4. 4. The requirements specified in this paragraph are those imposed in—...

       5. 5. The requirements specified in this paragraph are those—

       6. 6. The requirements specified in this paragraph are those imposed in...

       7. 7. The requirements specified in this paragraph are those imposed in—...

       8. 8. The requirements specified in this paragraph are those imposed in—...

       9. 9. The requirements specified in this paragraph are those imposed in—...

       10. 9A. The requirements specified in this paragraph are those imposed in...

       11. 10. The requirements specified in this paragraph are those imposed in—...

       12. 11. The requirements specified in this paragraph are those imposed in...

       13. 11A. The requirements specified in this paragraph are those imposed in—...

       14. 12. The requirements specified in this paragraph are those imposed under—...

       15. 13. The requirement specified in this paragraph is the requirement imposed...

    10. SCHEDULE 6A

        The United Kingdom’s Financial Intelligence Unit

        1. 1. Interpretation

        2. 2. Reports to the National Crime Agency

        3. 3. Co-operation

        4. 4. Provision of information in response to external requests

        5. 5. Where an external request is received and the NCA does...

        6. 6. The NCA must designate at least one point of contact...

        7. 7. Where the NCA has provided relevant information to a foreign...

        8. 8. Where the NCA provides relevant information in response to an...

        9. 9. Conditions and restrictions on provision or further dissemination of relevant information

        10. 10. Where an obligation arises under this Schedule for the NCA...

        11. 11. The NCA is not required to comply with the duty...

        12. 12. The NCA must have particular regard— (a) where making a...

        13. 13. Requests for information by the NCA to foreign FIUs

        14. 14. The NCA must address a request for the information to...

        15. 15. Where the NCA makes a request to a foreign FIU...

        16. 16. Conditions and restrictions on use of information received by the NCA from foreign FIUs

    11. SCHEDULE 6B

        Changes in Control of Registered Cryptoasset Businesses

        1. 1. Modifications: Control over registered cryptoasset exchange providers and registered custodian wallet providers

        2. 2. Interpretation

    12. SCHEDULE 7

        Consequential Amendments

        1. PART 1 Consequential Amendments to Primary Legislation

           1. 1. Solicitors (Scotland) Act 1980

           2. 2. Northern Ireland Act 1998

           3. 3. Financial Services and Markets Act 2000

           4. 4. Terrorism Act 2000

           5. 5. Criminal Justice and Police Act 2001

           6. 6. Proceeds of Crime Act 2002

           7. 7. Counter-Terrorism Act 2008

           8. 8. Borders, Citizenship and Immigration Act 2009

           9. 9. Crime and Courts Act 2013

           10. 10. Finance Act 2014

           11. 11. Bank of England and Financial Services Act 2016

        2. PART 2 Consequential Amendments to Secondary Legislation

           1. 12. Estate Agents (Undesirable Practices) (No 2) Order 1991

           2. 13. Public Interest Disclosure (Prescribed Persons) Order (Northern Ireland) 1999

           3. 14. Terrorism Act 2000 (Crown Servants and Regulators) Regulations 2001

           4. 15. Representation of the People (England and Wales) Regulations 2001

           5. 16. Representation of the People (Scotland) Regulations 2001

           6. 17. Financial Services and Markets Act 2000 (Regulated Activities) Order 2001

           7. 18. Open-Ended Investment Companies Regulations 2001

           8. 19. Proceeds of Crime Act 2002 (Disclosure of information to and by Lord Advocate and Scottish Ministers) Order 2003

           9. 20. Proceeds of Crime Act 2002 (Failure to Disclose Money Laundering: Specified Training) Order 2003

           10. 21. Legislative and Regulatory Reform (Regulatory Functions) Order 2007

           11. 22. Representation of the People (Northern Ireland) Regulations 2008

           12. 23. Transfer of Tribunal Functions and Revenue and Customs Appeals Order 2009

           13. 24. Payment Services Regulations 2009

           14. 25. Companies (Disclosure of Address) Regulations 2009

           15. 26. Overseas Companies Regulations 2009

           16. 27. Defence and Security Public Contracts Regulations 2011

           17. 28. Electronic Money Regulations 2011

           18. 29. Terrorism Act 2000 and Proceeds of Crime Act 2002 (Business in the Regulated Sector) (No 2) Order 2012

           19. 30. Payment to Treasury of Penalties (Enforcement Costs) Order 2013

           20. 31. Public Interest Disclosure (Prescribed Persons) Order 2014

           21. 32. Companies (Disclosure of Date of Birth Information) Regulations 2015

           22. 33. Payment Accounts Regulations 2015

           23. 34. Register of People with Significant Control Regulations 2016

           24. 35. Economic Growth (Regulatory Functions) Order 2017

17. Explanatory Note