Money laundering rules go but firms can’t relax - Andersons Solicitors - Nottingham

Money laundering rulebook goes but firms can’t relax

The Financial Services Authority has accepted the feedback it’s been getting from the industry it regulates and abolished its own rules on money laundering.

But the change doesn’t remove the responsibilities of regulated firms to do everything possible to avoid being used to legitimise the proceeds of crime.

As an Authority spokesman was quick to point out, “firms won’t be able to sit back and take it easy.”

They will still have to report any suspected money laundering operations, carefully check the identity of prospective clients and they will still need to have money laundering officers.
The new approach follows the Authority’s consultation exercise with the financial services industry last year when the response was overwhelmingly in favour of removing the rules.
The change is perhaps something of a mixed blessing. Companies will be pleased that they no longer need to adhere rigidly to the Authority’s regulations. On the other hand, there is no rulebook to fall back on and so it puts more responsibility on senior management of regulated companies.
They will have to ensure their own internal checks against money launderers are tight enough and carried out properly
Regulated firms will need to have a money laundering code of practice in place by August.