Review of the Money Laundering Regulations

01 October 2012

Following a thorough review and consultation process, details of which can be found below, the Money Laundering (Amendment) Regulations 2012 came into force on 1st October 2012. They make amendments to the Money Laundering Regulations 2007

The Regulations aim to allow businesses flexibility in the measures they take to protect themselves from the risks posed by money laundering and terrorist financing and also to encourage them to focus their resources in an effective and proportionate way, commensurate to the risks they face, as opposed to taking a tick-box based approach to compliance.

Money Laundering Regulations 2007 and subsequent amendments (Legislation website, opens in new browser window)

Background to the review of the Money Laundering Regulations 2007

In 2009/10 the Treasury conducted a thorough review of the Money Laundering Regulations 2007.

The regulations implement the 3rd EU Money Laundering Directive and the Treasury committed to reviewing the implementation of the regulations two years following their implementation.

3rd EU Money Laundering Directive (external website, opens in a new window)

The review focused on whether the regulations were effective and proportionate in practice, identifying where they are working well and where there may be room for improvement.

Call for evidence

The process began with the publication of a Call for Evidence and extensive engagement with businesses throughout the UK across all sectors as well as with supervisors, law enforcement, consumer groups, private individuals, NGOs and across government.

The responses to the Call for Evidence and a summary of these responses were published on the Treasury website in April 2010 and are available below.

Government response to the review and consultation

The Government response to the review and the proposals for consultation it contains have been developed on the basis of the evidence received during the Call for Evidence and also by further engagement with ministers, businesses and others as part of the better regulation process introduced by the Government in 2010.

On 7 June 2011, the Treasury published the Government response to the review and an impact assessment on the costs and benefits of the proposals for consultation it contained. The consultation ran from 7 June to 30 August. Views were sought on:

the proposals for changes to the regulations; and
any other issues contained in the response or the regulations generally.

In particular, information was sought on the potential costs and benefits of the proposals made in order to develop these proposals and ensure they contribute to a more effective and proportionate implementation of the regulations in practice.

Read the Government response to the review and consultation

Consultation responses

The Government received seventy two responses from a wide range of stakeholders including Supervisors, law enforcement bodies, professional bodies, regulated businesses, private individuals and non-governmental organisations. The Government only publishes the responses as authorised by respective authors and/or issuing institutions.

The summary of responses below sets out the timeframe for the publication of the Government’s response to the consultation.

Summary of responses: Consultation on proposed changes to the money laundering regulations 2007 (PDF 251KB)

Individual responses

Government response to the consultation on changes to the Money Laundering Regulations 2007 and impact assessment

On 17 July 2012 the Government published its response to the 2011 consultation that was taken in its review of the Money Laundering Regulations 2007 and proposals for improvement.

The Government response follows a lengthy review and consultation of the Regulations with engagement from over 250 stakeholders, which found that although the regulations were broadly effective and proportionate there was room for improvements.

The Government response document and impact assessment set out proposals to reduce the regulatory burden imposed by the current regulations, while strengthening the overall anti-money laundering regime.

You can contact the review team by email at mailto:aml@hmtreasury.gsi.gov.uk.

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