The implications of being a 'relevant person'

• perform ‘customer due diligence’ (CDD)
  This includes verifying the identity of their customers or clients. Identifying, where there is a ‘beneficial owner’ (see over) who is not the customer and at times verifying their identity. In addition information on the purpose and the intended nature of the business relationship must be obtained.
  
  
• maintain records
  These include copies of the identity evidence obtained as part of CDD. It is also necessary to maintain supporting records in respect of the business relationship.
  
  
• maintain a number of appropriate risk-based policies and procedures
  These must cover amongst others, CDD and ongoing monitoring, reporting, record keeping, internal control and risk assessment and management. Also, the monitoring and management of compliance with, and the internal communication of, these policies and procedures in order to prevent activities related to money laundering and terrorist financing.
  
  In most cases, the appointment of a money laundering reporting officer (MLRO) to receive reports of money laundering must also be made.
  
  
• ensure that relevant individuals within the business are aware of the law relating to money laundering and terrorist financing and that they are regularly given training in how to recognise and deal with transactions and other activities which may be related to money laundering.

If your business is a ‘relevant person’ you may have already received guidance from your professional or trade body. Please come and talk to us if you would like to discuss in more detail how the requirements of the Regulations will affect you. Overleaf we consider how the Regulations affect those of you who are high value dealers, money service businesses, trust or company service providers and certain accountancy service providers. We also consider how you may be affected if you have dealings with a business caught by the Regulations.

The implications for customers or clients

As you can see from the list overleaf, quite a wide range of professionals and other businesses are affected by the Regulations. Those affected must comply with the law in this area as they face the prospect of criminal liability, both fines and possible imprisonment, if they do not.