The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017
2017 No. 692
Financial Services
The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017
Made 22th June 2017
Laid before Parliament 22th June 2017
Coming into force 26th June 2017
The Treasury are designated1for the purposes of section 2(2) of the European Communities Act 19722in relation to the prevention of money laundering and terrorist financing.
The Treasury in exercise of the powers conferred by section 2(2) of that Act and by sections 168(4)(b), 402(1)(b), 417(1) and 428(3) of the Financial Services and Markets Act 20003, make the following Regulations.
PART 1
Introduction
Citation and commencement
1.—(1) These Regulations may be cited as the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.
(2) These Regulations come into force on 26th June 2017.
Prescribed regulations
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 FCA to institute proceedings for certain other offences) of the Financial Services and Markets Act 20004.
General interpretation
3.—(1) In these Regulations—
“Annex 1 financial institution” has the meaning given by regulation 55(2);
“appropriate body” means any body which regulates or is representative of any trade, profession, business or employment carried on by a relevant person;
“auction platform” has the meaning given by regulation 14(1)(c);
“auditor” (except in regulation 31(4)) has the meaning given by regulation 11(a);
“authorised person” means a person who is authorised for the purposes of FSMA;
“the FCA” means the Financial Conduct Authority;
“beneficial owner”—
(a) in the case of a body corporate or partnership, has the meaning given by regulation 5;
(b) in the case of a trust or similar arrangement, or the estate of a deceased person in the course of administration, has the meaning given by regulation 6;
(c) in any other case, has the meaning given by regulation 6(9);
“body corporate”—
(a) includes—
(i) a body corporate incorporated under the laws of the United Kingdom or any part of the United Kingdom, and
(ii) a body corporate constituted under the law of a country or territory outside the United Kingdom;
(b) but does not include—
(i) a corporation sole, or
(ii) a partnership that, whether or not a legal person, is not regarded as a body corporate under the law by which it is governed;
“bill payment service provider” means an undertaking which provides a payment service enabling the payment of utility and other household bills;
“branch”, except where the context otherwise requires, means a place of business that forms a legally dependent part of the entity in question and conducts directly all or some of the operations inherent in its business;
“business relationship” has the meaning given by regulation 4;
“the capital requirements directive” means Directive 2013/36/EUof the European Parliament and of the Council of 26th June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/ECand repealing Directives 2006/48/ECand 2006/49/EC5;
“the capital requirements regulation” means Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26th June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/20126;
“cash” means notes, coins or travellers’ cheques, in any currency;
“casino” has the meaning given by regulation 14(1)(b);
“the Commissioners” means the Commissioners for Her Majesty’s Revenue and Customs;
“contract of long-term insurance” means any contract falling within Part 2 of Schedule 1 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 20017;
“correspondent relationship” has the meaning given by regulation 34(4);
“credit institution” has the meaning given by regulation 10(1);
“customer due diligence measures” means the measures required by regulation 28, and where relevant, those required by regulations 29 and 33 to 37;
“Department for the Economy” means the Department for the Economy in Northern Ireland;
“designated supervisory authority” has the meaning given by regulation 76(8);
“document” means anything in which information of any description is recorded;
“electronic money” has the meaning given by regulation 2(1) of the Electronic Money Regulations 20118;
“electronic money institution” has the meaning given by regulation 2(1) of the Electronic Money Regulations 2011;
“electronic money issuer” has the meaning given in regulation 2(1) of the Electronic Money Regulations 2011;
“eligible Scottish partnership” has the meaning given in regulation 3 of the Scottish Partnerships (Register of People with Significant Control) Regulations 2017 (key terms)9;
“the emission allowance auctioning regulation” means Commission Regulation (EU) No 1031/2010of 12th November 2010 on the timing, administration and other aspects of auctioning of greenhouse gas emission allowances pursuant to Directive 2003/87/ECof the European Parliament and of the Council establishing a scheme for greenhouse gas emission allowances trading within the Community10;
“enactment” includes—
(a) an enactment contained in subordinate legislation;
(b) an enactment contained in, or in an instrument made under, an Act of the Scottish Parliament;
(c) an enactment contained in, or in an instrument made under, a Measure or Act of the National Assembly for Wales; and
(d) an enactment contained in, or in an instrument made under, Northern Ireland legislation;
“enhanced customer due diligence measures” means the customer due diligence measures required under regulations 33 to 35;
“estate agent” has the meaning given by regulation 13(1);
“European Supervisory Authorities” means—
(a) the European Securities and Markets Authority;
(b) the European Banking Authority;
(c) the European Insurance and Occupational Pensions Authority;
“external accountant” (except in regulation 31(4)) has the meaning given by regulation 11(c);
“financial institution” has the meaning given by regulation 10(2);
“firm” means any entity that, whether or not a legal person, is not an individual and includes a body corporate and a partnership or other unincorporated association;
“fourth money laundering directive” means Directive 2015/849/EUof the European Parliament and of the Council of 20th May 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing11;
“FSMA” means the Financial Services and Markets Act 200012;
“funds transfer regulation” means Regulation 2015/847/EU of the European Parliament and of the Council of 20th May 2015 on information accompanying transfers of funds13;
“group” has the meaning given by section 421 (group) of FSMA14;
“high value dealer” has the meaning given by regulation 14(1)(a);
“independent legal professional” has the meaning given by regulation 12(1);
“insolvency practitioner” has the meaning given by regulation 11(b);
“law enforcement authority” has the meaning given by regulation 44(10);
“local weights and measures authority” has the meaning given by section 69 of the Weights and Measures Act 1985 (local weights and measures authorities)15;
“manager”, in relation to a firm, means a person who has control, authority or responsibility for managing the business of that firm, and includes a nominated officer;
“markets in financial instruments directive” means Directive 2014/65/EUof the European Parliament and of the Council of 15th May 2014 on markets in financial instruments16;
“money laundering” has the meaning given by section 340(11) of the Proceeds of Crime Act 200217;
“money service business” means an undertaking which by way of business operates a currency exchange office, transmits money (or any representation of monetary value) by any means or cashes cheques which are made payable to customers;
“the NCA” means the National Crime Agency;
“nominated officer” means a person who is nominated to receive disclosures under Part 3 (terrorist property) of the Terrorism Act 200018or Part 7 (money laundering) of the Proceeds of Crime Act 2002;
“notice” means a notice in writing;
“occasional transaction” means a transaction which is not carried out as part of a business relationship;
“officer”, except in Part 8 and Schedule 5—
(a) in relation to a body corporate, means—
(i) a director, secretary, chief executive, member of the committee of management, or a person purporting to act in such a capacity, or
(ii) an individual who is a controller of the body, or a person purporting to act as a controller;
(b) in relation to an unincorporated association, means any officer of the association or any member of its governing body, or a person purporting to act in such a capacity; and
(c) in relation to a partnership, means a partner, and any manager, secretary or similar officer of the partnership, or a person purporting to act in such a capacity;
“ongoing monitoring” (except where the context otherwise requires) means at least the measures described in regulation 28(11);
“payment services” has the meaning given by regulation 2(1) of the Payment Services Regulations 200919;
“payment service provider” has the meaning given in regulation 2(1) of the Payment Services Regulations 2009;
“politically exposed person” or “PEP” has the meaning given by regulation 35(12);
“the PRA” means the Prudential Regulation Authority;
“PRA-authorised person” has the meaning given by section 2B(5) of FSMA20;
“regulated market”—
(a) within the EEA, has the meaning given by Article 4.1(21) of the markets in financial instruments directive; and
(b) outside the EEA, means a regulated financial market which subjects companies whose...
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