ED BALLS PUBLISHES NEW MONEY LAUNDERING REGULATIONS
THE Economic Secretary, Ed Balls, has recently published the draft money laundering regulations for consultation, alongside his speech to the FSA financial crime conference. The regulations are designed to ensure that the UK response to money laundering at home and abroad is effective, proportionate and engages with all key stakeholders.
The proposals include extended supervision so that all businesses in the regulated sector comply with money laundering requirements, including estate agents, trust and company service providers and unsecured lenders; strict tests to ensure people running money services businesses and those who help set up trusts and companies are fit and proper; and extra checks on customers that firms identify as posing a high risk of money laundering.
There will also be a requirement to establish the source of wealth for those in high risk situations, for example, those involving deals with high ranking public officials overseas; and a strengthened and risk-based regime in casinos, in line with, but stricter than, international standards. In addition to taking tough action where the risks require it, the measures announced will also reduce regulatory burdens in low risk areas.
Firms will be able to make fewer checks in low risk situations, such as employer led pension funds and child trust fund administration, and the number of identity checks will be reduced with firms being able to rely upon checks of other firms in certain situations.
Greater flexibility will be introduced to record keeping rules so that firms can keep important details rather than whole documents.