HM Treasury has published an updated advisory notice regarding risks posed by unsatisfactory anti-money laundering and terrorist financing (AML/CTF) controls. The notice is issued in connection with the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs 2017) (see daily news 26 June 2017), which require firms to put policies and procedures in place in order to prevent activities related to money laundering and terrorist financing.
The notice has been made following two statements published by The Financial Action Task Force (FATF) which identify jurisdictions with strategic deficiencies in their AML/CFT regimes (see daily news 7 November 2017). The FATF calls on members to apply counter measures and enhanced due diligence measures when dealing with persons established in the Democratic People’s Republic of Korea as well as enhanced due diligence measures in Iran. In other jurisdictions such as Ethiopia, Iraq and Yemen, the FATF calls for members to consider undertaking enhanced due diligence measures in high risk situations.
The notice is intended to draw the regulated sector’s attention to the FATF statements and notes the MLRs 2017 which relate to enhanced customer due diligence measures and enhanced ongoing monitoring.
A copy of the notice is available.