Government urged to publish new money laundering regulations

The Fifth EU Money Laundering Directive (5MLD) entered into force in July 2018 and member states are required to transpose the provisions into domestic law by 10 January 2020.

SmartSearch, UK’s provider of AML software, said that given the significant impact of the new regulations on not just the big banks but law firms, accountancy practices, estate agents and firms dealing in high-value goods, the final anti-money laundering (AML) regulations need to be published in order to give firms time to prepare.

“The Treasury published its consultation on the transposition of the directive in April, but since then the political situation, and the uncertainty as to the UK’s status in relation to the EU, have regrettably served to prevent this important issue from commanding the attention it deserves,” SmartSearch CEO John Dobson said.

“As a result, the necessary regulations have yet to be laid before Parliament.”

Mr Dobson explained that the new regulations will have a significant impact on Know Your Customer (KYC) as well as due diligence processes for many sectors of the economy.

“Money laundering is responsible for financing some of the most serious criminal activity, from drug cartels through to people trafficking and terrorism,” he said.

“It is rightly a high priority not just for EU member states but for governments across the world, with the Financial Action Task Force increasingly co-ordinating global efforts to tackle the problem.

“The UK has been a powerful voice in these efforts, and it is vital for our economic success now and in the future that we continue to show global leadership. To attract legitimate investment, we need to provide reassurance that our markets are as free as possible from the taint of financial crime.”