Where is the JMLSG guidance applicable?
the industry sectors
The Guidance prepared by JMLSG is addressed to firms in the industry sectors represented by its member bodies, and to those firms regulated by the FCA.
Are the JMLSG guidance notes?
JMLSG produces guidance (JMLSG Guidance) to assist those in financial industry sectors represented on JMLSG by their trade member bodies, to comply with their obligations in terms of UK anti money laundering (AML) and counter terrorist financing (CTF) legislation and the regulations prescribed pursuant to legislation.
Is JMLSG guidance legally binding?
The Guidance is issued by a private sector body and therefore cannot be legally binding, although it is of significance that it has HM Treasury approval. It is not over-prescriptive but provides a base from which management can develop tailored policies and procedures that are appropriate for their business.
Which body provides guidance on the interpretation of the money laundering Regulations?
Guidance which is approved by Treasury is ‘relevant guidance’ within the meaning of the Money Laundering Regulations 2007.
What is 5MLD?
On 10 January 2020 Fifth Money Laundering Directive (EU) 2018/843 (5MLD) came into force. 5MLD expands the scope of businesses to which the UK’s anti-money laundering regime applies (for example to tax advisers, letting agents and crypto-asset exchanges), as well as amending a number of the substantive requirements.
What are the current money laundering regulations?
The Money Laundering and Terrorist Financing Regulations 2019 implemented the EU Fifth Money Laundering Directive in the UK, and came into effect on 10 January 2020. This legislation extends the scope of regulated industries and changes the way customer due diligence and enhanced due diligence is conducted.
What are the three stages of money laundering?
There are usually two or three phases to the laundering:
- Placement.
- Layering.
- Integration / Extraction.
Is KYC a legal requirement?
KYC and AML obligations are nothing new to the legal sector. Many small and medium sized law firms do not have a centralised due diligence process or teams, and often checks are done by the lawyer assigned to a specific case.
Does 5MLD replace 4MLD?
5MLD introduces a new lower limit of €150 on anonymous prepaid cards, following 4MLD limit of €250. Firms will be required to carry out due diligence checks on clients using prepaid cards with more than €150. 5MLD will also remove the anonymity of the use of prepaid cards online.
What is the punishment for money laundering in UK?
The primary money laundering offences carry a maximum penalty of 14 years’ imprisonment and an unlimited fine. Offences under the Regulations are punishable with a maximum penalty of two years’ imprisonment (for individuals) and an unlimited fine. For a legal entity, the maximum penalty is an unlimited fine.