Changes to the Money Laundering Regulations 2007 have been laid before Parliament and will come into force on 1 October. More details can be found at Changes to Money Laundering Regulations to reduce burden on British businesses (Opens new window).
There are several changes which will affect businesses supervised by HM Revenue & Customs (HMRC). The main ones are:
This test is part of the registration process for Money Service Businesses and Trust and Company Service Providers and it applies to particular individuals within these businesses. Under the changes the decision on whether an individual is fit and proper will now be based on the risk of money laundering or terrorist financing. HMRC will therefore be able to take into account a wider set of criteria when deciding whether a person is fit and proper. The changes also introduce a right of appeal for a person who has been deemed by HMRC not to be 'fit and proper' under the regulations.
A registration may now be cancelled where, after registration, the 'relevant person' is no longer able to meet the conditions for registration or where the relevant person has failed to provide HMRC with information it has requested by notice.
A relevant person is a person or business to whom the regulations apply. The definition has been widened to include those persons who HMRC believes or suspects to be a relevant person.
A penalty can now be imposed for failure to provide information required by notice.
A legal gateway now exists between supervisory authorities which allows them to share information subject to certain conditions.