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HM Treasury launches consultation to enhance money laundering regulations

HM Treasury launches consultation to enhance money laundering regulations
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HM Treasury has initiated an open consultation aimed at refining the Money Laundering Regulations (MLRs) to bolster their effectiveness while reducing burdens on legitimate customers. The consultation, which closes on 9th June 2024, seeks to address identified shortcomings in the current regulations while aligning with the broader objectives outlined in the Economic Crime Plan 2023-26.

The consultation, which builds upon the 2022 Review of the UK’s anti-money laundering and counter-terrorist financing regulatory framework, acknowledges the generally adequate nature of the MLRs’ core requirements. However, it highlights the need for technical adjustments to optimise effectiveness and ensure proportional application across regulated firms and customers.

Key themes of the consultation include:

  • Proportionate customer due diligence: Streamlining and enhancing customer due diligence processes to strike a balance between effectiveness and proportionality.
  • System coordination: Strengthening coordination among various systems involved in combating money laundering and terrorist financing.
  • Clarity on scope: Providing clearer guidance on the scope of the MLRs to facilitate better compliance.
  • Reforming registration requirements: Evaluating and potentially reforming registration requirements, particularly for the Trust Registration Service.

The consultation actively encourages input from a diverse array of stakeholders, including regulated businesses, supervisory bodies, law enforcement agencies, civil society organisations, and members of the public. Stakeholders are invited to respond to the consultation through various channels, including the online ‘Improving the Effectiveness of the Money Laundering Regulations‘ form.

To read the Improving the effectiveness of the Money Laundering Regulations consultation document, click here.

Cost of Compliance Survey

In tandem with the consultation, HM Treasury is conducting a Cost of Compliance Survey to better understand how regulated businesses adhere to the MLRs. This survey aims to gauge the impact of potential regulatory changes on businesses of varying sizes, from large corporations to SMEs and sole traders. You can see and respond to the survey at the Cost of compliance with the Money Laundering Regulations – survey for regulated businesses.

How Neopay can help

As a leading provider of compliance solutions, Neopay is ready to assist businesses in navigating the evolving landscape of money laundering regulations. Our comprehensive suite of services is designed to ensure that businesses meet regulatory requirements efficiently and effectively. From tailored compliance assessments to robust training programs, we empower businesses to stay ahead of regulatory changes while maintaining a strong stance against financial crime. Contact us today to learn how Neopay can support your compliance journey.

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