CP17/13: Fourth money laundering directive and fund transfer regulation implementation (DEPP and EG)

Show CP17/13 (PDF)

The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 will replace the Money Laundering Regulations 2007 and the Transfer of Funds (Information on the Payer) Regulations 2007.

The regulations require firms subject to anti-money laundering obligations to ensure that they create policies and procedures that assess the risks they face from money laundering and terrorist financing. Firms also need to ensure that the measures they take in meeting customer due diligence and ongoing monitoring are commensurate to those risks.

The regulations provide enhanced supervisory powers for us to effectively oversee the extent to which firms comply with their obligations as well as how banks and some payment institutions comply with the fund transfer regulation. This includes powers for us to assess the fit and proper status of those running ‘Annex I Financial Institutions’.

In addition, the regulations give us new enforcement tools to deal with anti-money laundering and counter-terrorist financing breaches. We are consulting on the amendments to the decision procedure and penalties manual and enforcement guide in light of the changes that will be introduced by the regulations.

Who this applies to

These proposals will be of interest to anyone that may be subject to supervision or enforcement action by us under the regulations. This will include (but is not limited to):

• banks and other credit institutions
• building societies
• wealth management firms
• investment managers
• auction platforms

What you need to do

Please send us your comments by 7 July 2017: 

Online response form

You can also:

• email [email protected] or
• write to: Law and Policy, Enforcement and Market, Oversight Division, Financial Conduct Authority, 25 The North Colonnade, Canary Wharf, London E14 5HS

Next steps

We will consider your feedback and publish our rules in a Policy Statement which we expect to do in July 2017.