The Money Laundering Regulations 2007
| Year | 2007 |
2007 No. 2157
FINANCIAL SERVICES
The Money Laundering Regulations 2007
Made 24th July 2007
Laid before Parliament 25th July 2007
Coming into force 15th December 2007
The Treasury are a government department designated1for the purposes of section 2(2) of the European Communities Act 19722in relation to measures relating to preventing the use of the financial system for the purpose of money laundering;
The Treasury, in exercise of the powers conferred on them by section 2(2) of the European Communities Act 1972 and by sections 168(4)(b), 402(1)(b), 417(1)3and 428(3) of the Financial Services and Markets Act 20004, make the following Regulations:
PART 1
GENERAL
Citation, commencement etc.
1.—(1) These Regulations may be cited as the Money Laundering Regulations 2007 and come into force on 15th December 2007.
(2) These Regulations are prescribed for the purposes of sections 168(4)(b) (appointment of persons to carry out investigations in particular cases) and 402(1)(b) (power of the Authority to institute proceedings for certain other offences) of the 2000 Act.
(3) The Money Laundering Regulations 20035are revoked.
Interpretation
2.—(1) In these Regulations—
“the 2000 Act” means the Financial Services and Markets Act 2000;
“Annex I financial institution” has the meaning given by regulation 22(1);
“auditor”, except in regulation 17(2)(c) and (d), has the meaning given by regulation 3(4) and (5);
“authorised person” means a person who is authorised for the purposes of the 2000 Act6;
“the Authority” means the Financial Services Authority;
“the banking consolidation directive” means Directive 2006/48/ECof the European Parliament and of the Council of 14th June 2006 relating to the taking up and pursuit of the business of credit institutions7;
“beneficial owner” has the meaning given by regulation 6;
“business relationship” means a business, professional or commercial relationship between a relevant person and a customer, which is expected by the relevant person, at the time when contact is established, to have an element of duration;
“cash” means notes, coins or travellers’ cheques in any currency;
“casino” has the meaning given by regulation 3(13);
“the Commissioners” means the Commissioners for Her Majesty’s Revenue and Customs;
“consumer credit financial institution” has the meaning given by regulation 22(1);
“credit institution” has the meaning given by regulation 3(2);
“customer due diligence measures” has the meaning given by regulation 5;
“DETI” means the Department of Enterprise, Trade and Investment in Northern Ireland;
“the electronic money directive” means Directive 2000/46/ECof the European Parliament and of the Council of 18th September 2000 on the taking up, pursuit and prudential supervision of the business of electronic money institutions8;
“estate agent” has the meaning given by regulation 3(11);
“external accountant” has the meaning given by regulation 3(7);
“financial institution” has the meaning given by regulation 3(3);
“firm” means any entity, whether or not a legal person, that is not an individual and includes a body corporate and a partnership or other unincorporated association;
“high value dealer” has the meaning given by regulation 3(12);
“the implementing measures directive” means Commission Directive 2006/70/ECof 1st August 2006 laying down implementing measures for the money laundering directive9;
“independent legal professional” has the meaning given by regulation 3(9);
“insolvency practitioner”, except in regulation 17(2)(c) and (d), has the meaning given by regulation 3(6);
“the life assurance consolidation directive” means Directive 2002/83/ECof the European Parliament and of the Council of 5th November 2002 concerning life assurance10;
“local weights and measures authority” has the meaning given by section 69 of the Weights and Measures Act 198511(local weights and measures authorities);
“the markets in financial instruments directive” means Directive 2004/39/ECof the European Parliament and of the Council of 12th April 200412on markets in financial instruments;
“money laundering” means an act which falls within section 340(11) of the Proceeds of Crime Act 200213;
“the money laundering directive” means Directive 2005/60/ECof the European Parliament and of the Council of 26th October 200514on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing;
“money service business” means an undertaking which by way of business operates a currency exchange office, transmits money (or any representations of monetary value) by any means or cashes cheques which are made payable to customers;
“nominated officer” means a person who is nominated to receive disclosures under Part 7 of the Proceeds of Crime Act 200215(money laundering) or Part 3 of the Terrorism Act 200016(terrorist property);
“non-EEA state” means a state that is not an EEA state;
“notice” means a notice in writing;
“occasional transaction” means a transaction (carried out other than as part of a business relationship) amounting to 15,000 euro or more, whether the transaction is carried out in a single operation or several operations which appear to be linked;
“the OFT” means the Office of Fair Trading;
“ongoing monitoring” has the meaning given by regulation 8(2);
“regulated market”—
(a) within the EEA, has the meaning given by point 14 of Article 4(1) of the markets in financial instruments directive; and
(b) outside the EEA, means a regulated financial market which subjects companies whose securities are admitted to trading to disclosure obligations which are contained in international standards and are equivalent to the specified disclosure obligations;
“relevant person” means a person to whom, in accordance with regulations 3 and 4, these Regulations apply;
“the specified disclosure obligations” means disclosure requirements consistent with—
(a) Article 6(1) to (4) of Directive 2003/6/ECof the European Parliament and of the Council of 28th January 200317on insider dealing and market manipulation;
(b) Articles 3, 5, 7, 8, 10, 14 and 16 of Directive 2003/71/ECof the European Parliament and of the Council of 4th November 200318on the prospectuses to be published when securities are offered to the public or admitted to trading;
(c) Articles 4 to 6, 14, 16 to 19 and 30 of Directive 2004/109/ECof the European Parliament and of the Council of 15th December 200419relating to the harmonisation of transparency requirements in relation to information about issuers whose securities are admitted to trading on a regulated market; or
(d) Community legislation made under the provisions mentioned in sub-paragraphs (a) to (c);
“supervisory authority” in relation to any relevant person means the supervisory authority specified for such a person by regulation 23;
“tax adviser” (except in regulation 11(3)) has the meaning given by regulation 3(8);
“terrorist financing” means an offence under—
(a) section 15 (fund-raising), 16 (use and possession), 17 (funding arrangements), 18 (money laundering) or 63 (terrorist finance: jurisdiction) of the Terrorism Act 2000;
(b) paragraph 7(2) or (3) of Schedule 3 to the Anti-Terrorism, Crime and Security Act 200120(freezing orders);
(c) article 7, 8 or 10 of the Terrorism (United Nations Measures) Order 200621; or
(d) article 7, 8 or 10 of the Al-Qaida and Taliban (United Nations Measures) Order 200622;
“trust or company service provider” has the meaning given by regulation 3(10).
(2) In these Regulations, references to amounts in euro include references to equivalent amounts in another currency.
(3) Unless otherwise defined, expressions used in these Regulations and the money laundering directive have the same meaning as in the money laundering directive and expressions used in these Regulations and in the implementing measures directive have the same meaning as in the implementing measures directive.
Application of the Regulations
3.—(1) Subject to regulation 4, these Regulations apply to the following persons acting in the course of business carried on by them in the United Kingdom (“relevant persons”)—
(a)
(a) credit institutions;
(b)
(b) financial institutions;
(c)
(c) auditors, insolvency practitioners, external accountants and tax advisers;
(d)
(d) independent legal professionals;
(e)
(e) trust or company service providers;
(f)
(f) estate agents;
(g)
(g) high value dealers;
(h)
(h) casinos.
(2) “Credit institution” means—
(a)
(a) a credit institution as defined in Article 4(1)(a) of the banking consolidation directive; or
(b)
(b) a branch (within the meaning of Article 4(3) of that directive) located in an EEA state of an institution falling within sub-paragraph (a) (or an equivalent institution whose head office is located in a non-EEA state) wherever its head office is located,
when it accepts deposits or other repayable funds from the public or grants credits for its own account (within the meaning of the banking consolidation directive).
(3) “Financial institution” means—
(a)
(a) an undertaking, including a money service business, when it carries out one or more of the activities listed in points 2 to 12 and 14 of Annex 1 to the banking consolidation directive (the relevant text of which is set out in Schedule 1 to these Regulations), other than—
(i) a credit institution;
(ii) an undertaking whose only listed activity is trading for own account in one or more of the products listed in point 7 of Annex 1 to the banking consolidation directive where the undertaking does not have a customer,
and, for this purpose, “customer” means a third party which is not a member of the same group as the undertaking;
(b)
(b) an insurance company duly authorised in accordance with the life assurance consolidation directive, when it carries out activities covered by that...
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