The new legislation and why it has been introduced
The Proceeds of Crime Act 2002 (The Act) and the Serious Organised Crime and Police Act 2005 both continue to contain relevant legislation in this area, as do the Terrorism Acts. The new legislation takes the form of the Money Laundering Regulations 2007 (The Regulations). The Regulations contain the detailed procedural requirements for those affected and they replace the Money Laundering Regulations 2003. The new Regulations came into force on 15 December 2007.
The new legislation stems from the European Union’s Third Money Laundering Directive and the Regulations are the mechanism used by the government to implement the requirements of this Directive.
Who is caught by the Regulations?
The Regulations apply to anyone who is defined as a ‘relevant person’, which in general terms includes:
- auditors and external accountants
- tax advisers
- independent legal professionals
- dealers in high value goods (including auctioneers) whenever a transaction involves accepting payment of at least d15,000 (or the equivalent in any currency; around £10,000) in cash for goods, whether in a single transaction or in several instalments
- trust or company service providers
- insolvency practitioners
- estate agents
- casinos
- credit and financial institutions.