UK Joint Money Laundering Steering Group Obtains Ministerial Approval for Updated Guidance

The U.K.’s Joint Money Laundering Steering Group has confirmed that it has received approval from HM Treasury for the final revised guidance it published in December 2017 on anti-money laundering and counter-terrorist financing for the financial services sector. The revisions to the guidance align it with the provisions of the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, which is the UK implementing legislation for the Fourth EU Money Laundering Directive (4MLD) and the revised Wire Transfer Regulation (WTR) which came into effect on June 26, 2017. 4MLD seeks to give effect to the updated Financial Action Task Force (FATF) global standards which promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system. WTR sets out the minimum requirements that are essential to ensure the traceability of transfers of funds.

Alignment with the U.K. implementing regulations for 4MLD and WTR required JMLSG to make various changes, including to its guidance on electronic verification and its sectoral guidance on electronic money and to re-order and clarify its guidance on risk assessment and the risk-based approach.  Other minor textual amendments were also made to conform the JMLSG guidance with the Criminal Finances Act 2017 which came into force on September 30, 2017.

The JMLSG invited firms to review and use the updated guidance from December 2017. However, now that it has received formal approval from HM Treasury, firms complying with the updated guidance can benefit from a safe harbour under certain elements of the UK’s anti-money laundering and counter-terrorist financing legislation.

View the JMLSG's announcement.

View the UK implementing regulations for 4MLD and WTR.