21 March 2017

JMLSG revises its risk-based Guidance in line with proposed new Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017

The Joint Money Laundering Steering Group (JMLSG) today publishes proposed revisions to Part I of its guidance on the prevention of money laundering and the financing of terrorism for the UK financial services industry. The proposed revisions reflect the provisions of the proposed new Money Laundering Regulations published by HM Treasury on 15 March 2017.

At the same time as amending text to align with the draft Regulations, JMLSG have made relatively extensive changes to the material on electronic verification in Chapter 5, in order to address concerns that the present text is not even-handed enough, and does not reflect modern practices in the electronic/digital world. A lot of the material in Chapter 4 (Risk based approach) has also been reordered, to present more clearly the separate text on Risk assessment, and the risk based approach. Given the introduction in the new Regulations of a formal legal obligation to carry out a risk assessment, it was felt appropriate to present the supporting material in our Guidance better.

The proposed revision is also believed to be consistent with the Risk Factor Guidelines which are to be issued by the European Supervisory Authorities. The final text of these Guidelines has not been published, but the JMLSG text reflects what was proposed in the ESA Consultation version published in October 2015, with some anticipation of possible changes that the ESAs will make.

For the consultation version of Part I click here

For marked-up versions of:
Chapters 1-3 click here
Chapter 4 click here
Chapter 5 click here
Chapters 6-8 click here

Comments on the proposed revision are invited by 28 April 2017. These should be sent, electronically if possible, to

Or to

David Swanney
Joint Money Laundering Steering Group
Pinners Hall
105-108 Old Broad Street

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