Money laundering regulations

New money-laundering regulations which expand the regulated sector came in to effect today. Businesses covered by the new regulations are estate agents, casinos, insolvency practitioners, tax advisers, accountants, auditors, lawyers, company and trust formation agents and anyone conducting a business of dealing in goods (including auctioneers) accepting cash of £10,000 or more in a single transaction.

Financial Secretary to the Treasury, Ruth Kelly said:

“These regulations represent an important new development in our strategy to tackle both money-laundering and terrorist-financing, and ensuring our systems meet international standards. They have been developed in consultation with industry to ensure that excessive burden is not placed on business.

“The proceeds of money-laundering allow criminals to profit from their crimes and are used to fund organised crime and terrorist activity. The integrity of the UK financial system is dependent on there being robust measures in place.”

Those conducting business in the regulated sector are required to have in place systems and controls to forestall and prevent money-laundering, including identifying their customers, appointing a money-laundering reporting officer, training for staff in recognising money-laundering, record keeping, and internal reporting systems to ensure that reports are made to the Financial Intelligence Division of the National Criminal Intelligence Service whenever there is knowledge, suspicion or reasonable grounds for knowledge or suspicion of money-laundering.

Notes for editors

1. The Money Laundering Regulations 2003 replace the Money Laundering Regulations 1993 and the Money Laundering Regulations 2001. At the same time that the Regulations come into force, so will amending orders for the definitions of Business in the regulated sector for the Proceeds of Crime Act 2002 and the Terrorism Act 2000.

2. The regulations and related material can be found on-line on the HM Treasury website

3. The financial services industry has had access to guidance provided by an industry association: the Joint Money Laundering Steering Group (available by subscription from the JMLSG website). Other interim guidance is available from amongst others: the Law Society, the Institute of Chartered Accountants for England and Wales, HM Customs & Excise for Money Service Operators and High Value Dealers, and the Royal Institute of Chartered Surveyors for estate agents.

4. Media enquiries should be addressed to Simon Moyse at HM Treasury Press Office, tel. 020 7270 5238