Ed Balls publishes New Money Laundering Regulations
Today the Economic Secretary, Ed Balls, published the draft money laundering regulations for consultation, alongside his speech to the FSA financial crime conference. The regulations are designed to ensure the UK response to money laundering at home and abroad is effective, proportionate and engages with all key stakeholders. In addition to taking tough action where the risks require it, the measures announced today will also reduce regulatory burdens in low risk areas.
(Media-Newswire.com) - Today the Economic Secretary, Ed Balls, published the draft money laundering regulations for consultation, alongside his speech to the FSA financial crime conference. The regulations are designed to ensure 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; extra checks on customers that firms identify as posing a high risk of money laundering; 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 today will also reduce regulatory burdens in low risk areas. For example:
firms will be able to make fewer checks in low risk situations, such as employer led pension funds and child trust fund administration; the number of identity checks will be reduced with firms being able to rely upon checks of other firms in certain situations; and greater flexibility will be introduced to record keeping rules so that firms can keep important details rather than whole documents. Ed Balls said:
'These Regulations will strengthen further the UK's defences against money laundering and terrorist finance. By taking tough and targeted new measures where the risks are greatest we will crackdown further on illegal activity and help force criminals and would-be terrorists out of the shadows. At the same time our Regulations will ensure that businesses and consumers in low risk situations face fewer burdens than previously.'
The public consultation is open until 2 April 2007. The Government will implement the regulations by December 2007.
Notes to Editors The annual FSA financial crime conference is being held at the Queen Elizabeth II Conference Centre, Broad Sanctuary, Westminster, London, SW1. Also speaking at the conference are the Chief Executive of the FSA John Tiner and Sir James Crosby who established the Public Private Forum on identity management, which will report to the Chancellor in March 2007. The draft Money Laundering Regulations, published today, build on responses to the Government's consultation on the Third Money Laundering directive, published in July 2006. In the next few weeks, the Government will publish an anti-money laundering and counter-terrorist financing strategy document, which will build on the previous anti-money laundering strategy document launched in 2004. Today's proposals are effective across the 'regulated sector'. 'Regulated' firms include the financial sector, professionals such as lawyers and accountants, casinos, trust and company service providers and estate agents. There are over 3,200 Money Service Businesses in the UK, a category that encompasses bureau de change, cheque cashers and money remitters. The Government estimates that the total quantified organised crime market in the UK is worth about £15 billion per year. Media enquiries should be addressed to the Treasury Press Office on 020 7270 5238. Non-media enquiries should be addressed to the Treasury Correspondence Unit on 020 7270 4558 or by email. This press release and other Treasury publications and information are available on the Treasury website. If you would like a Treasury press release to be sent to you automatically by email you can subscribe to this service.
This story was released on 2007-01-23. Please make sure to visit the official company or organization web site to learn more about the original release date. See our disclaimer for additional information.