Money Laundering Regulations 2007 – UK

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Money Laundering Regulations 2007 (MLR) ONLY applies to regulated businesses in the UK.

These place proactive obligations on regulated firms to conduct customer due diligence, record keeping.

Some of the requirements are as follows:

  • Application of customer due diligence measures (s.7)
  • Ongoing monitoring (s.8)
  • Enhanced due diligence (s.14)
  • Record-keeping (s.19)
  • Policies/procedures (s.20)
  • Training (s.21)

These do NOT apply to digital currency businesses unless they have registered with HMRC as a supervisory body for the MLR. HMRC will currently only register businesses that are involved in the exchange of fiat to fiat currency; straight fiat to digital currency is not registerable.

Note: HM Treasury to make it a requirement for digital currency intermediaries to comply with MLR. After election further details will be provided on WHO this requirement for MLR will apply to and which regulator will supervise this industry.