Over the past few months, the JMLSG Board has carried out a review of its Money Laundering Guidance for the Financial Sector, looking at ways in which the Guidance might be made clearer, especially in the areas of risk assessment and monitoring the effectiveness of systems and controls.

Member trade associations and other key stakeholders were invited to make comments on each aspect.   The comments received were considered by the Editorial Panel and by the Board.

The Board decided that it would not be appropriate to anticipate, at this time, any amendments to the Guidance that would be needed when the EC Fourth Money Laundering directive is adopted and implemented. Nevertheless, some contextual material from the new FATF documentation relating to the risk-based approach has been included where this seemed appropriate.

The Board today publishes revised text of the relevant material in Parts I and II, showing the amendments proposed.  The amendments proposed are summarised on the attached schedule.

The Consultation text is available in marked-up format:

Part I
Part II

JMLSG welcomes comment on the proposed amendments to its Money Laundering Guidance.  Comments may be made in hard copy or electronic form, and should be sent to:

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

Comments should be received by 15 September 2014

25 July 2014



Proposed amendment



Chapter 1

In paragraph 1.8 the reference to relevant material issued by the Basel Committee has been amended to refer to current material. Similar amendments have been made where reference to this material is made.


Paragraph 1.25 has been amended to better refer to the FCA objectives in the area of financial crime.


Paragraph 1.42A has been added, to emphasise the importance of communicating policies and procedures.

Chapter 2

Paragraph 2.6A has been added, to emphasise the importance of communicating policies and procedures.

Chapter 3

Paragraph 3.1A has been added to improve clarity, and to be consistent with Chapter 6.


Additional words have been added to paragraph 3.4 to try to emphasise the different roles of Nominate Officer and MLRO.


Paragraphs 3.27a and 3.27b have been added to provide additional guidance on monitoring the effectiveness of systems and controls.

Chapter 4

Material has been added throughout this chapter to improve the clarity of the guidance relating to the assessment of risks, especially where there are mixed risks.


At various points in the chapter reference to the FCA Financial Crime Guide has been included, to ensure that firms are aware of the need to consider the expectations of the FCA in various areas.

Chapter 5

Paragraphs 5.3.21 and following have been amended to provide guidance to firms on the importance of taking account of other contacts and relationships that a customer may have with other areas of the business or group.


Paragraphs 5.3.45 – 5.3.47 have been deleted, and will be incorporated into the text of section 4 in Part III, which gives fuller guidance on complying with the UK financial sanctions regime


Paragraphs 5.3.64A – 5.3.64C have been added to include reference to the provisions of the Immigration Act relating to illegal immigrants.


Paragraphs 5.3.178A and 5.3.269A have been added to provide more context.


Paragraph 5.5.28B has been added to add more context to the application of EDD measures.

Chapter 6

Clarifying footnote included to indicate that a nominated officer may appoint an alternate.


Text added to paragraph 6.25 to clarify that UK based reporting officers have no overseas reporting obligations.



Sector 2

The text in paragraph 2.34 has been aligned to that in paragraph 2.18.

Sector 7

Two additional FAQs have been added.

Sector 15

Reference has been included to the additional chapter on trade finance added to the FCA Financial Crime Guide.

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