Compliance and Due Diligence
Money Laundering Regulations 2007
Directive 2005/60/EC of the European Parliament and of the Council, on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing (the 'Third EU Money Laundering Directive'), was formally adopted on 20 September 2005.
Member States had two years to adopt and bring into force appropriate implementing measures - the implementation deadline was 15 December 2007.
These regulations have an impact on:
- All regulated businesses
- Any business that deals in financial information
- Any firms that might be expected to be involved in cash deals worth more than €15,000 in a single transaction
Government advice is that businesses should utilise online systems, using ‘credible third party sources’ and where possible, to check source documents. Specifically:
- Identifying and verifying the client on the basis of documents, data or information obtained from a reliable and independent source;
- Identifying, where applicable, the beneficial owner and taking risk based and adequate measures to verify his identity so that the firm is satisfied that it knows who the beneficial owners are;
- Obtaining information on the purpose and intended nature of the business relationship; and
- Conducting ongoing monitoring, on a risk sensitive basis, of the business relationship.
The Solutions
- For UK clients: AML report
- For International clients: KYC report
- For UK Private Individuals: CALLML
- Read a user perspective: Bird and Bird Case Study