On 21 March 2017, the Joint Money Laundering Steering Group (JMLSG) published proposed revisions to Part I of its guidance on the prevention of money laundering and the financing of terrorism for the UK financial services industry.
Part I contains generic guidance that applies across the UK’s financial sector on how firms should manage money laundering and terrorist financing risks utilising a risk-based approach. It sets out standards for the identification and verification of customers and provides guidance on firms’ obligation to conduct monitoring over customer activity.
The proposed revisions are to reflect the pending enactment Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.
JMLSG states, that within all the eight chapters being reviewed, extensive changes have been made to Chapter 4 (to address the formal legal obligation to carry out a risk assessment of the money laundering and terrorist financing risks faced by the firm); and to Chapter 5 (to reflect modern practices in the electronic/digital world).
Deadline for comments on the proposed revisions are to be submitted by 28 April 2017.
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